BenchPlus+ ™ Expense Reduction System
Easily Benchmark, Manage and Save on ALL Your Purchase Services with BenchPlus+ ™
Did You Know that You Could Be Leaving Up to 18% in New Savings on the Table Untouched?
We would all like to think that we have total control over all of our supply chain expenses. From our experience, however we can say emphatically that this just isn't true. One big expense category has been universally neglected – purchase service spend. We haven’t been managing and controlling all of our purchase service contracts, from elevator maintenance to transcription services, that countless hospitals, systems, and IDNs have a dollar value equal to or greater than their supply expenses.
We have found this category of purchase to be a new unclaimed gold mine for supply chain professionals. To ensure your healthcare organization’s continuing financial health, you must pay more attention to these elusive expenses. “Getting back to the basics” will help you move forward to even more savings for your healthcare organization.
The Final Piece of the Puzzle
Now that your prices are under control, standardization is complete, and utilization is on most hospitals radar screens, the remaining piece of the supply chain puzzle is to effectively manage and control your purchase service contracts.
By doing so, you can save 11% to 18% on this spend category. From our experience, this spend category is the easiest way to save money, since you generally only need to convince a few customers to make a change in their practices as opposed to hundreds of individuals in other categories of your supply spend such as pacemakers, orthopedics, dressing trays, catheters, or custom packs.
We have found that there are hundreds of thousands of dollars to be saved in telecommunications expenses. Just last month a client of ours wrapped up a telecommunication project that saved them $720,295. They were able to do this since no one has been watching or scrutinizing this category of purchase service, or any other purchase service contract they had on file.
Another one of our clients is on track to save $4,594,882 (or 24.6%) on their total purchase service spend because they have made it a priority to do so. In no other commodity group, with the exception of utilization, will you find these gigantic kinds of savings - Not in price, not in standardization and not even in your value mismatches.
How to Attack These Big Savings in Your Purchase Service Expenses
To attack these savings, you will first need to broaden your supply chain department’s scope and authority to include all purchase services contracts. You can build a case for change by showing your C-suite how much they are spending on this category of spend and what the savings potential (11% to 18%) is if you were put in charge of this spend category.
Second, you need to centralize all of your hospital’s purchase service contract files(if you don’t have contract archival software, you might want to check out our BenchPlus™ Purchase Service Manager) and their administration under your materials management department. If the workload justifies it, you will need to hire a contract administrator to manage, control, analyze, bid or negotiate these contracts.
Third, you will also need a benchmarking power tool like our BenchPlus™ Purchase Service Manager to ensure that their total lifecycle costs are within acceptable limits. Otherwise, how would you know if there are savings opportunities if you don’t quantify them and have a roadmap to start saving?
Lastly, you will need a subscription service like our BenchPlus™ Purchase Service Manager to trend and track the performance of your contractors to identify spikes in your utilization cost and to ensure that they are conforming to requirements. Why is this important? Just last week we reviewed an IV pump rental contract for one of our clients and found that they used 2,252 more IV sets than originally estimated, yet they didn’t get a price break for doing so. We also noted that their pump set cost went up 28% during their four-year contract period, but no one questioned it. This is why you can never take your eye off the ball even after you have signed a supposedly cost-effective and value-justified new or renewal purchase service contract.
It is a deep dark secret that many healthcare organizations don’t have this huge supply spend up on their radar screens, and in many instances it is their biggest supply chain expense category. It is now time to get control of these liabilities where there is the greatest legal and regulatory risk exposure for your healthcare organization. At the same time, wring the towel dry in savings that are ripe for harvesting.
| One of the best features of our BenchPlus™ Purchase Service Manager is our library of purchase service “best practices” — developed and client tested over the last three years — that will guide you through the process of reducing your price, standardization and utilization costs on all of your purchase services. This is in addition to our LIVE Advisory Service! |
Isn’t it Time You Have a Proven Power Tool to Capture All of These Elusive & Hard to Get at Savings?
If you don’t have a power tool like our BenchPlus™ Purchase Service Manager to manage and control your purchase service spend it is almost impossible to totally control the millions of dollars you are now spending on your service category. With our advanced power tool we can guarantee that you will be able to:
- Capture all your purchase service spend in one easy-to-use, intuitive and secure archive.
- Benchmark all of your hospital purchases services to quickly uncover your best savings opportunities in the range of 11% to 18%.
- Track and trend the performance of your contractors, against predetermined or history standards, to identify spikes in your utilization cost.
- Manage all of your purchase service contract details (who, what, when, and where and how much) with our “contract driver” feature, so you never miss a due date again.
- Select from a library of purchase service “best practices” — developed and client-tested over the last three years — that will guide you through the process of reducing your price, standardization and utilization cost on all of your purchase services.
That’s not all! We will also provide you with a dedicated LIVE advisor who will assist you in the interpretation of the data and strategize with you to make your savings happen.
| Note: Our BenchPlus™ Purchase Service Manager’s monthly subscription service can be cancelled at any time for any reason. No long-term commitment! No long-term risks! |
Top 10 Reasons Why BenchPlus™ Purchase Service Expense Reduction System Might be the Right Service at the Right Time for You!
10. It can save you 11% to 18% on your hospital purchase services within 18 months.
9. It can uncover services savings that are hidden from your view.
8. It can save you hundreds of hours of research and development.
7. It can make your job quicker, easier and more productive.
6. It can find purchase service contracts you never knew existed.
5. It can give you a dashboard that tells you all you need to know.
4. It can do the heavy lifting for you, so you have time to think.
3. It can keep you more organized and on top of your game.
2. It can capture all of your contracts details in one place.
1. It is much easier than managing your hospital purchase services with spreadsheets.
Best of all, it can give you the peace of mind that all of your purchase service contracts are under control, competitive and waste free…