At Quality First Solutions, we look at all areas of Purchased Services and break them down into seven categories; Administrative, Ancillary, Information Technology, Outsources Services, Plant Operations & Maintenance, Support Services, Capital, and Clinical. We’ve found that 70% of a Hospital’s total Purchased Services spend is typically addressable with an average savings of 5 to 33%.
Here's 10 things you should know about your Hospital's Purchased Services:
- Purchased Services are any services contracted for and performed by someone other than in-house staff.
- In the Healthcare Industry, Purchased Services account for more than $100 billion in spending every year.
- 20 to 30 % of almost every hospital’s budget is made up of Purchased Services.
- Purchased Services spend is often decentralized, resulting in a lack of cohesive decision making and strategy.
- Non-clinical Purchased Services can account for up to 80% of the hospital purchased spend.
- Many Purchased Service contracts automatically renew without negotiation.
- There is little to no reliable benchmarking for hospitals to use for their Purchased Services.
- The majority of Purchased Service agreements do not flow through the Purchasing department.
- Most Purchased Service agreements can be renegotiated before the end of a current agreement.
- Quality First Solutions can help you reduce your Hospital’s Purchased Service more than 5 to 33 percent!