Health Care Purchased Services

Purchased Services Health Care

Purchased Services Can Assist in Service Delivery

As more health care organizations seek ways to reduce costs, executives have made purchased services a top priority. Research shows purchased services can account for up to 35 percent of a typical U.S. hospital’s operating expenses. When a purchased service is correctly benchmarked, appropriately contracted and effectively managed, a hospital can realize meaningful savings that can be passed on and used to improve patient care. When purchased services are mismanaged or neglected, hospitals risk losing money or missing a chance to reduce costs.

Purchased Services Review & Alignment

BKD can review your organization’s purchased services to assess whether they properly align with your needs and if there are overlapping services delivered by your staff and the contracted service. Assessment of these services can assist in aligning service and delivery:

  • Clinical – Blood services, dialysis, reference lab, surgical equipment, imaging
  • Financial – Credit card processing, specialty billing, resource management/staffing
  • Environmental – Facility cleaning, waste management, linens/laundry, utilities
  • Support Services – Food services, transportation, ambulance, document management
  • IT/Telecom – Hardware, software, wireless
  • HR – Staffing, benefits, education

BKD can conduct an inventory of existing purchased services contracts and help identify opportunities for standardization, consolidation and contract negotiation.

Governance & Management

It’s important to track and manage all contract services. Leaders and managers need visibility for these service expectations, as well as skill and competency.

Choosing the best option for your organization could start with GPO; however, all options should be considered. BKD can help vet these options with alternatives, as well as benchmarks from third parties.

Negotiating Contracts

Negotiating skills and contracting expertise are important, foundational elements to contract each purchased service successfully. However, every service evaluation should include subject-matter experts who also understand:

  • The complexities of the purchased service
  • The hospital’s needs for the service
  • The key benchmarks to include in the service-level agreement
  • The requirements for service delivery

Using a third party like BKD to gain this level of insight into purchased services could be a cost-effective option for your hospital instead of in-house staffing.

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