From the April 2021 issue of HealthCare Business News magazine
The hospital’s outside sourcing analysts identified iNO therapy during a review of the hospital’s spend as a “category to watch” for high savings opportunities. The hospital and its consultants shared intel over the years, resulting in quick action when exclusivity expired on the orphan drug.
The consultant’s advisory team worked with the hospital’s Strategic Sourcing and Respiratory personnel and provided product evaluation, further data analytics, and targeted negotiation points for a successful, competitively priced new agreement with an emerging iNO therapy supplier. Specifically, the consulting team was able to identify what alternatives were emerging into the market, what type of fee structures they offered, and what a competitive price was for the therapy based on visibility into what other providers were paying. This level of insight and transparency into these specialized and rapidly changing markets is not and cannot be available without leveraging a third party with access to an extensive database of market pricing that is updated in real time.
Numed, a well established company in business since 1975 provides a wide range of service options including time & material service, PM only contracts, full service contracts, labor only contracts & system relocation. Call 800 96 Numed for more info.
With its market intel and expertise in spend management, the consulting organization helped the hospital achieve cost savings of more than $350,000 annually. The effort underscored the hospital team’s commitment to obtaining a critical service for its patients at a lower cost, without impacting patient care.
Working with a knowledgeable partner allows hospitals to analyze data and develop spend insights for immediate action. Categories with the most opportunity for savings include purchased services, med-surg, and capital equipment and projects.
Every budget cycle comes with ambitious savings targets. But even after consolidating vendors and optimizing price, aggressive management of leakage, off-contract spend, and misbilling still needs to take place. This is especially difficult — and often mismanaged — when it comes to non-PO spend, which cannot be validated via a 3-way match in an ERP system. A combination of spend analytics and monitoring, coupled with contract negotiations and proven purchasing strategies, can help transform cost centers into savings opportunities.
Spend Analytics takes a goal-driven approach to how hospitals and health systems manage their supply chain spend and contract negotiations. It starts with a technology-enabled analysis into every dollar a health system spends (excluding payroll), and is guided by a team of spend analytics experts to achieve the organization’s savings goals.