July 16, 2020

Top Three Risks of Blanket Purchase Orders (POs)

Blanket purchase orders (POs) are often used to help reduce system costs, operate with only necessary inventory, and increase purchasing power. Nonetheless, blanket POs are often a source of lost funds for a healthcare system. Typically, TAG recommends limiting or eliminating the use of blanket POs because of the associated risks. We recognize, however, that some situations necessitate the use of a blanket PO. When those circumstances arise, your system should consider the following risks and implement preventative measures to reduce those risks. 1. Lack of Required Information Blanket POs often lack many of the standard controls found within traditional […]
January 14, 2019

Are You Managing Your Purchasing or Allowing Vendors to Manage It?

Hospital purchasing contracts exist to protect an organization’s funds by clearly defining suppliers’ terms. Not having a contract on a regularly purchased item can lead to higher pricing, as one of our hospital clients discovered after a vendor rep left.   The hospital had a verbal agreement with the manufacturer’s representative for textile products, which were purchased through a distributor. After the rep left the company the distributor began charging the hospital the manufacturer’s list prices because it had no vendor agreement for the rep’s discounted pricing. Since the hospital also lacked a contract in its system for the discounted […]
Are You Managing Your Purchasing or Allowing Vendors to Manage It?
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