Why Sustainable Purchased Services Savings Require More Than Quick Wins

Why Sustainable Purchased Services Savings Require More Than Quick Wins

By Les Popiolek

Purchased services and indirect spend costs in hospitals are becoming increasingly difficult to manage not because of any single faulty contract, but because a fragmented approach to contracting can lead to agreements spread across departments, each with its own owners, renewal schedules, independent operating requirements, and often with overlapping vendors.  This fragmentation can limit the size and scale hospitals bring to negotiations, meaning even well-negotiated rates may still fall short of expected savings.