Legal 101 Best Practices
Robert T. Yokl Robert T. Yokl
7 Purchased Service Best Practices that Positively Impact Your Bottom Line Robert T. Yokl, President, SVAH Solutions
Purchased service management (PSM) is a relatively new supply chain discipline. However, based on our 33-year PSM experience, we have observed the following seven essential PSM best practices that could positively impact your bottom line: 1. Ensure every purchased service (PS) contract is bid/negotiated: Even if your GPO has a PS national contract in their portfolio, this is just a benchmark price for you. Only by bidding/negotiating a new or renewal PS contract can you obtain the lowest price possible in your region of the country. 2. Attack older, ongoing, or automatic renewal PS contracts first: These are the PS contracts that have been on your hospital, system, or IDN’s books for years, but haven’t been put under the microscope. A quick review could save you thousands of dollars annually. 3. Eliminate unneeded and unwanted functions, features, and services: It is good to start with a blank piece of paper to write your PS contract’s specifications, since you don’t need or want everything your contractor might be offering you. For example, it took years before one of our clients
Volume 1/Issue 1
Healthcare Purchased Services Magazine
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