From the January/February 2016 issue of HealthCare Business News magazine
By more effectively managing contracts through technology, a typical IDN can save up to $2 million per year. Other benefits include minimized risk, as explained above, and reduced dependence on others to keep track of your contracts.
A well-respected IDN, widely recognized as one of the nation’s top hospitals, is currently implementing a pilot program to more effectively manage contracts by implementing supply chain technology that will monitor and oversee thousands of disparate contracts in one place. The program’s goal is to significantly reduce supply chain expenses by automating price changes, monitoring rebates so they can be realized, analyzing spend against contract commitments, rationalizing overlapping contracts and automating notifications for key events, such as pending contract expirations.
Ad Statistics
Times Displayed: 45539
Times Visited: 1299 Ampronix, a Top Master Distributor for Sony Medical, provides Sales, Service & Exchanges for Sony Surgical Displays, Printers, & More. Rely on Us for Expert Support Tailored to Your Needs. Email info@ampronix.com or Call 949-273-8000 for Premier Pricing.
The program will be ready for implementation in just a few months, and the IDN expects to start realizing savings immediately. The savings are expected to grow every time a new contract is created and managed. Furthermore, by managing each contract more effectively, the IDN will be in a position to better leverage its buying power during future purchasing cycles.
After all the hard work of negotiating contracts is complete, it’s critical to ensure the negotiated savings hit your bottom line. It doesn’t have to be difficult. Utilizing available technology to help you more effectively manage contracts will not only yield significant supply chain savings, it will also help you gain independence from others in managing your contracts. Controlling their own supply chain destiny is the way of the future for health systems. Those that embrace this concept will achieve financial sustainability and rise to the top. The others will continue to chase declining revenue streams.
About the author: Michael DeLuca is executive vice president of technology and client services for Prodigo Solutions, a health care supply chain solutions company helping hospitals gain control of supply chain spend through contract compliance and automation.Back to HCB News
