Purchased Services Advisory
Valify's Advisory Services experts align stakeholders to create value with national and local service providers by reducing cost while improving service levels. We provide best practices for implementing centralized contracting, identifying fragmented and rogue spending, and managing expenses going forward.
Case Study:Advisory Solutions
When you operate dozens of hospitals across disparate materials management information systems (MMIS), it can be nearly impossible to analyze spend at the corporate level. Furthermore, it can be difficult to understand what vendors are providing which services at the system level. This creates complications with far reaching consequences such as inconsistent agreements, multiple vendors providing the same services, individual facilities executing one-off contracts.
These factors prompted the Chief Operating Officer of one of the nation’s leading operators of general acute care hospitals, with headquarters in the southeast, to engage the services of the Valify Advisory Solutions team for help.
Advisory Solutions began with an analysis of all facilities’ spend data to consolidate a single source of truth at the corporate level. After benchmarking each category against similar organizations, we identified two strong savings opportunities. Both categories were selected due to their high spend and multiple vendors: print management and elevator maintenance.
By eliminating multiple vendors and signing a sole-source print management agreement, the health system saved $2.4 million off $18 million annual spend on print management.
In the elevator maintenance category, $1.2 million in savings was implemented off an initial $3.1 million in annual spend. Most importantly, the health system was able to smoothly transition to new contracts in 90 days instead of the expected 120+days.
A lot of the decision-making has to do with the [purchased services] category itself and whether we're knowledgeable enough about it . . . other times it's a bandwidth issue. Purchased services contracting, especially when there's a clinical implication, takes a lot of work . . . we know that [Valify] can help us get across the finish line.- Assistant Vice President of supply chain at a large IDN providing care through facilities in multiple states in the west and midwest