Purchased Services Can Assist in Service Delivery
Purchased services are an important component to manage in a healthcare organization’s cost structure. In successful organizations, nonlabor initiatives can help add 1.5 to 3 percent of net revenue to the bottom line. Increasingly, purchased services are a major contributor to these cost reduction efforts, often comprising more savings than their supplies counterparts.
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.