Purchased services can comprise 20% or more of a hospital's total operating costs, according to the American Hospital Association. This should necessitate a focus on handling this area as strategically as other categories, including supply chain. Yet many organizations do not have a strategic plan around their purchased services, preferring to treat them reactively as contracts come up, rather than utilizing a wholistic, proactive approach. This session will examine current trends in purchased services and specifically address the question of outsourcing regarding both labor and non-labor areas of your purchased services spend.
- Assess the current trends having the strongest impact on purchased services for healthcare organizations.
- Explain why building a proactive, comprehensive plan around purchased services can reduce costs and bring new transparency and control over your purchased services spend.
- Summarize the pros and cons of outsourcing your purchased services functions for both labor and non-labor spend.