Purchased services are one of the largest and least centralized areas of non-labor spend across hospitals and IDNs. Without structured visibility, benchmarking, and modern purchased services software, these categories often limit margin control and negotiating leverage.

Proven Intelligence Across The Healthcare Purchased Services Landscape

• 1,400+ Purchased Services Categories
• 95%+ Non-Labor Spend Categorized
• $1T+ Categorized Healthcare Spend Analyzed
• 250+ Preferred Supplier Contracts

Purchased Services Have Become an Executive-Level Priority

Purchased services make up a meaningful portion of hospital operating spend, yet they are often managed across multiple departments with limited coordination. Vendors accumulate over time, contracts roll forward, and financial reporting varies from facility to facility.

Without a consolidated view supported by enterprise-grade purchased services software, leadership lacks clear insight into total exposure and pricing position. In today’s margin environment, hospitals need a disciplined approach that connects visibility, benchmarking, and oversight rather than relying on isolated sourcing initiatives.

What Are Healthcare Purchased Services?

A purchased service is any service contracted and performed by a third-party vendor rather than in-house staff. Unlike medical supplies or labor expenses, purchased services are categorized as non-direct labor spend. Across a health system, purchased services commonly include:

Facility Support Services

Environmental services, security, facilities maintenance, waste management, and support operations.

Clinical Services

Outsourced clinical programs, laboratory partnerships, imaging support, and specialty service contracts.

IT and Telecommunications Services

Managed IT, software support, cybersecurity services, telecom infrastructure, and digital systems support.

Financial and Revenue Cycle Services

Billing services, coding support, audit services, consulting engagements, and financial advisory programs.

HR and Workforce Services

Recruitment, training programs, staffing services, and benefits administration.

Ancillary and Operational Services

Transportation, dietary services, linen services, and operational partnerships.

Insurance and Risk Programs

Liability insurance, malpractice coverage, and other contracted insurance services.

The Valify Model for Purchased Services Optimization

Valify structures purchased services around four pillars: visibility, benchmarking, contract optimization, and governance to bring clarity and control to fragmented service spend through purpose-built purchased services software.

Pillar One: Enterprise-Wide Spend Visibility Across 1,400+ Categories

Optimization begins with clarity.

We integrate and cleanse accounts payable data across facilities, standardizing vendor names, contract references, and category classifications through healthcare-specific purchased services software. More than 95 percent of non-labor spend is categorized across 1,400+ unique purchased services categories.

This delivers:

• Line-item invoice visibility
• Consolidated vendor exposure analysis
• Identification of fragmented or duplicate contracts
• Enterprise-level reporting across facilities

Pillar Two: Category-Level Benchmarking Powered by $1T+ in Categorized Spend

Visibility alone is not enough. Hospitals need market intelligence delivered through scalable purchased services software. Valify’s PinPoint Benchmarks leverage more than $1 trillion in categorized healthcare spend to provide category-level benchmarking insights.

Hospitals gain:

• Peer comparisons using multiple enterprise filters
• Invoice-level price range and average analysis
• Terms and conditions review
• Vendor Market Share intelligence across 550,000+ vendors
• Evaluation of potential impact to patient and staff satisfaction

Pillar Three: Accelerated Sourcing and Preferred Supplier Optimization

We combine benchmarking intelligence with sourcing execution. Through Valify Solutions Group, hospitals gain access to more than 250 pre-negotiated preferred supplier contracts across 110+ service categories.

Capabilities include:

• Aggregated sourcing events that increase purchasing leverage
• Express contracting with nationally vetted suppliers
• Locally initiated contracting tailored to regional needs
• Incumbent contract alignment strategies
• Co-terminous contracting and vendor consolidation

Pillar Four: Governance Infrastructure That Sustains Savings

Sustainable savings require oversight. Valify’s WorkPlan dashboard, part of our integrated purchased services software, provides automated monitoring across purchased services categories.

Hospitals can:

• Track savings initiative progress
• Monitor preferred supplier compliance
• Receive alerts for off-contract vendors
• Detect unexpected spend spikes
• Validate realized savings at the invoice level

Diversity Vendor Spend Visibility

We also support diversity reporting across purchased services categories.

Hospitals can:

• Track diversity-certified vendor spend
• View total and category-level diversity metrics
• Identify new diverse sourcing opportunities

How Purchased Services Optimization Works

Valify follows a structured process supported by enterprise-level purchased services software that moves hospitals from fragmented spend visibility to sustained financial control.

Step 1: Data Integration and Normalization

Accounts payable data is integrated across facilities, standardized, and aligned to 1,400+ purchased services categories. Vendor inconsistencies are reconciled to create a clean, enterprise-wide view of non-labor spend.

Step 2: Identify Opportunities

 Once the data is organized, pricing differences and contract gaps become easier to spot. Categories with the greatest financial impact are flagged for action.

Step 3: Update Contracts and Source Strategically

 Hospitals move forward with renegotiations, preferred supplier transitions, or targeted sourcing to improve terms and reduce unnecessary vendor overlap.

Step 4: Monitor and Maintain Results

 Savings are tracked, compliance is reviewed, and spend is monitored regularly to ensure improvements hold over time.

Built for Healthcare Financial and Operational Leaders

Purchased services impact multiple teams across a health system. Valify brings finance, supply chain, and operations onto the same page with clear data and consistent reporting.

For CFOs and Finance Leaders
See total non-labor exposure, understand margin impact, and review savings with confidence.

For Supply Chain Leaders
Bring greater control to contracts, reduce unnecessary vendors, and negotiate from a stronger position.

For Vendor Management Teams
Track compliance, monitor contract performance, and maintain alignment with preferred suppliers.

For IT and Finance Stakeholders
Work from standardized data that supports consistent reporting across facilities.

Why Hospitals Choose Valify

Hospitals choose Valify for focused expertise, credible benchmarking intelligence, and a model built specifically for healthcare purchased services.

Built Exclusively for Healthcare Purchased Services

Valify is purpose-built for healthcare service categories, delivering deeper category intelligence across 1,400+ purchased services categories rather than broad non-labor coverage.

Market Intelligence That Strengthens Negotiations

With $1T+ in categorized spend powering benchmarking insights, hospitals gain reliable pricing context and vendor positioning visibility before entering contract discussions.

Integrated Analytics, Sourcing, and Governance

Valify connects spend visibility, preferred supplier contracts, sourcing execution, and ongoing oversight into one coordinated program that drives measurable and sustainable savings.

Enterprise Alignment Across Stakeholders

Finance, supply chain, IT, and vendor management teams operate from a shared source of truth, improving accountability and contract discipline across the health system.

Proven Results Across Health Systems

Health systems that partner with Valify gain measurable savings and enterprise-wide visibility across purchased services.

“Before Valify, the full view of our purchased services spend data was obscured and time consuming to extract. Valify made reporting immediate and revealed that we were spending significantly more than originally believed. Complete visibility has been essential to maximizing savings and improving vendor management.”

— Vice President of Vendor Management, Large IDN

Transform Purchased Services Into a Centralized Savings Strategy

Gain the visibility, benchmarking intelligence, and governance structure needed to manage purchased services with confidence across 1,400+ service categories.

Schedule a Demo with Valify 

Frequently Asked Questions:

What percentage of hospital budgets are purchased services?

Purchased services typically account for 40-50% of a hospital’s non-labor operating spend, making them one of the largest categories of indirect hospital expenses.

How can hospitals reduce purchased services costs?

Hospitals reduce costs by centralizing visibility, benchmarking contracts against market data, optimizing sourcing strategies, and implementing governance to sustain savings.

What is purchased services benchmarking?

Purchased services benchmarking compares pricing, contract terms, and vendor performance against peer data to identify opportunities for optimization.

What are examples of purchased services in hospitals?

Purchased services include third-party services such as environmental services, IT support, laboratory partnerships, revenue cycle services, facilities maintenance, and other operational or clinical vendor contracts used by hospitals.

How long does it take to see savings?

Savings opportunities are identified after data integration and benchmarking analysis. Actual savings occur once contracts are renegotiated, sourcing events are completed, or pricing adjustments are implemented.

Valify Team

The Valify Editorial Team is dedicated to sharing insights, strategies, and innovations that help healthcare organizations gain control of purchased services spend. Backed by years of expertise in data analytics, procurement, and healthcare technology, the team curates practical resources and thought leadership to guide hospitals and health systems toward greater efficiency and savings. By combining industry knowledge with real-world case studies, the Valify Editorial Team delivers content that empowers decision-makers to drive smarter, data-driven sourcing strategies.