According to the American Hospital Association, US IDNs spend over $400 billion on purchased services each year. Purchased services represent a unique and often untapped opportunity for cost-savings. These services can also support local, green, and diversity initiatives within your IDN. Led by a senior executive from a major IDN, this two-part workshop will provide you with the tools you need to analyze your purchased services portfolio, implement strategies to increase your oversight, and leverage these services to meet your IDN initiatives.

Learning Objectives:

1. Evaluate strategies to increase the value and reduce the costs of your purchased services.
2. Outline plans of action to increase the oversight of your purchased services portfolio.
3. Describe purchased services’ role in achieving system-wide and supply chain initiatives.

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.

Learning Objectives:

1. Assess the current trends having the strongest impact on purchased services for healthcare organizations.
2. Explain why building a proactive, comprehensive plan around purchased services can reduce costs and bring new transparency and control over your purchased services spend.
3. Summarize the pros and cons of outsourcing your purchased services functions for both labor and non-labor spend.

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.

Learning Objectives:

1. Assess the current trends having the strongest impact on purchased services for healthcare organizations.
2. Explain why building a proactive, comprehensive plan around purchased services can reduce costs and bring new transparency and control over your purchased services spend.
3. Summarize the pros and cons of outsourcing your purchased services functions for both labor and non-labor spend.

Looking for direction? Trying to get started? Interested in how you can clarify and understand your purchased services opportunities? Purchased services today is where Physician Preference Items were 30 years ago… lacking actionable benchmarks and a knowledge of where the right opportunity would be. IDNs are looking for greater opportunities to drive value and standardization but have few resources to turn to for direction. This hour long 1:1 session will provide you an open forum to discuss where you are with your Purchased Services initiatives as well as putting a plan in place to where you need to be. The intent is not an academic exercise, but instead a detailed review of your accounts payable file, current/previous pipeline and sharing of best practices.

Key takeaways-

· Basic PS analytics

· Metrics to define success

· Framework to drive extra value

· List of actionable opportunities, based upon your data

· Knowledge to be successful on your own

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Purchased services can account for 40-50% of an IDNs non-labor costs, but many organizations don’t have a clearly defined plan or strategy when it comes to dealing with this highly complex area. This discussion will allow for the free sharing of questions and answers to some of the most common and vexing purchased services challenges including lack of data insight and transparency, limited integration and span of control, and suppliers’ ability to adapt to changing needs and regulations so persistent in the healthcare setting. Participants will learn of strategies and resources to help uncover suppliers that support your values and objectives, provide transparency in both financial and operational areas, and collaborate with you to find the best solutions in regard to both cost and quality.

Learning objectives:

1. Demonstrate the importance of developing a clearly defined, comprehensive plan or strategy for managing purchased services, and be able to apply best practices and strategies to optimize cost and quality.

2. Explain strategies and practices to effectively evaluate suppliers and assess their ability to work in and truly understand the healthcare setting.

3. Explore methods for promoting collaboration and communication with suppliers, and develop skills for building effective partnerships to achieve mutually beneficial goals.

4. Uncover available resources and tools for managing purchased services, including technology solutions, data analytics, and other resources that can be leveraged to optimize performance and enhance overall organizational effectiveness.