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September 28, 2020

6 Essential Clauses to Include in Healthcare Supplier Contracts

US Healthcare supply chain overspends by $25.4B each year, equating to 30 percent of total spend in the industry. Healthcare supply chain leaders must be proactive to eliminate the causes that contribute to this overspend, starting with the first line of defense – supplier contracting. Healthcare systems must review their general agreements and additional clauses to ensure they include the information below to protect against overcharges and other causes of leaked funds. Freight Charges Freight charges must be addressed in each supplier contract to include the party responsible for paying the freight. Organizations are encouraged to negotiate freight charges to […]
August 17, 2020

5 Tips for Managing Your Purchased Services

With over 30%* of all operational expenses, purchased services can be a revealing spend category for healthcare systems. Why? Purchased services often act as a litmus test for how well an organization systematizes its operations, communicates across departments, and optimizes their resources. Ultimately over the next decade, the health systems that fine-tune their purchased services management process will thrive, while everyone else falls behind.Purchased Services Quick Facts: Purchased services include any and all services that are performed by a third-party vendor rather than done by the health system itself. Examples include landscaping services, credit card processing, and transcription. Health systems […]
August 10, 2020

Keys to Successful Supplier Relationships

A positive supplier relationship builds trust and loyalty – both important foundations when it comes to negotiating new contracts. Building on trust and loyalty with your suppliers can have financial reward such as: Avoid overcharges. Suppliers may be understaffed or have inefficient systems leading to charges on supplies or services higher than the agreed-upon terms. Recover and avoid duplicate payments. Duplicate payments happen in all health systems, but loyalty with suppliers can help keep them honest and return the duplicated payment before inquiring about it. Avoid charges for services not rendered. Purchased services can be complex to manage leading to […]
May 27, 2020

Sourcing as a Strategic Means for Monitoring Rebates

Can a missed rebate really affect your hospital? The answer is yes! One of our clients in the northeast nearly missed out on a rebate of $250,000, the equivalent of purchasing a new ultrasound machine, covering the salaries of 3 – 4 RNs, or buying a new mammography system. This client did not have an effective tracking program costing them millions in missed rebates each year. Fortunately, the rebate was discovered and resolved during an audit of their procure-to-pay data. Ensuring all rebates are actually realized is pivotal in ensuring a healthcare system’s saving targets are met. no-repeat;left top;; auto […]
Sourcing as a Strategic Means for Monitoring Rebates
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