Healthcare Purchased Services

Purchased Services in Healthcare

A Critical Component in Cost Reduction Delivery

Get more information about our services, submit a request for proposal, or get in touch with a BKD Trusted Advisor™.

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.

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, and imaging
  • Financial – Credit card processing, specialty billing, and insurance
  • Environmental – Facility cleaning, waste management, linens/laundry, and utilities
  • Support Services – Food services, transportation, ambulance, and document management
  • IT/Telecom – Hardware, software, and wireless solutions
  • HR – Staffing, benefits, and 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.

How can we help you?

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