PURCHASED SERVICES

PURCHASED SERVICES ARE AN IMPORTANT PART OF THE HOSPITAL'S COST STRUCTURE

To remain profitable, hospitals must find ways to save money on purchased services. Unfortunately, most purchased services agreements are aged with unfavorable pricing.

Unlike with tracking expenses for products and capital within a health system, purchased services are difficult to quantify:

  • Purchased services have no item number
  • Primarily fulfilled by local vendors
  • Purchased off-PO 75-85% of the time

These factors make purchased services a complex area in which to manage budgets, to track expenses, and to implement compliance without the proper tools and best practices.

KEY PURCHASED SERVICES AREAS OF CONCERN

  • Ambulance Services
  • Housekeeping Services
  • Laundry and Linen
  • Biomedical Equipment Management
  • Office Supplies
  • Parking and Valet
  • Specialty Bed Rentals
  • Print and Copy
  • Waste Management
  • Sterilization
  • Contracted Ancillary Services
  • CT Scan, MRI
  • Renal Dialysis
  • Esoteric Laboratory Testing
  • Repairs and Maintenance
  • Fees Paid to Outside Organizations
  • Dietary Collection Agencies
  • Management Fees