Comprehensive Cost Cycle Savings

Purchased services agreements account for up to 50% of your organization’s non-labor spend. Purchased services is the part of a hospital’s non-labor spend that is contracted, purchased from, or outsourced to a third party vendor or consultant. Hiding within these agreements is the potential for major cost savings. Unfortunately, most cost analysis solutions are manual and produce limited results. Finding the right solution will improve operating efficiency and patient experience, while also, unlocking unparalleled cost savings for your hospital. SpendMend Purchased Services is the perfect solution.

The Recognized Leader in Healthcare

For over two decades, VIE Healthcare (a SpendMend Company) has been the recognized leader in healthcare costs, purchased services consulting, healthcare benchmarking, supply chain management, and performance improvement. Since the company’s founding, they have generated nearly $1 Billion in non-labor cost savings and revenue improvements for hospitals and health systems.

purchased services consulting

An Expert Opinion…

Lisa Miller, founder of VIE Healthcare Consulting discusses the cost savings potential in your purchased services agreements


PRESS RELEASE

SpendMend Completes Acquisition of VIE Healthcare Consulting

PURCHASED SERVICES SOLUTIONS:

Cost Savings Strategy

Purchased services spend can comprise as much as 40-50% of a hospital’s non-labor costs and represents millions in annual cost savings potential. Leading hospitals and healthcare systems have developed strategies to monitor and manage the high volume of supplier contracts.

Healthcare IT

IT cost reduction is a priority for hospitals and health systems faced with increasingly complex proposals and vendor contracts relating to IT. Leading healthcare systems implement strategies to maximize margin improvement opportunities across the many different categories of their IT spend.

O.R. Optimization

The operating room accounts for up to 70% of a hospital’s revenue, up to 65% of its margins and 50% of a hospital’s costs. An efficient operating room enhances patient satisfaction and ensures quality patient care while significantly reducing waste.

Spend Analytics

The growing utility of hospital spend analytics presents an excellent opportunity for new cost-effective approaches. Health systems, supply chains, and patient care facilities investing in spend analytics, can optimize hospital costs and expenditures to improve profits and eradicate bad debt.

Data Categorization

SpendMend illuminates purchased services spending across your entire healthcare system by categorizing your total monthly spend across hundreds of categories to uncover savings, so you can reduce the overall cost of operations for your entire healthcare organization.

Benchmarking

Benchmarking is a comparison and measurement of a healthcare organization’s performance against other healthcare organizations. It provides leaders with insight to help them understand how their organization compares with similar organizations that provide the same services.

COST OPTIMIZATION SOLUTIONS:

Physician Preference Items

Physician preference items (PPIs) are often comprised of the most expensive purchased services ordered by hospitals and can have a negative impact on your hospital’s operating margins. Successful healthcare organizations know how to optimize the purchasing process for every PPI product.

Capital Equipment

IT cost reduction is a priority for hospitals and health systems faced with increasingly complex proposals and vendor contracts relating to IT. Leading healthcare systems implement strategies to maximize margin improvement opportunities across the many different categories of their IT spend.

Supply Chain Consulting

Supply chain management for hospitals regularly requires expertise and experience. Health systems depend on top supply chain services for medical device procurement, shipment needs, and vendor relationships. With the right supply chain services, healthcare providers can develop a competitive advantage.

Healthcare analytics

Healthcare analytics and data management are key areas that have benefited from the recent wave of automation technology solutions in healthcare. Improved data accuracy, better monitoring and evaluation, and overall efficiency are some of the advancements brought about with automation.

DATA SHEET

Physician Preference Items – A Cost Saving Strategy For Your Hospital

Purchased Services & Cost Optimization Features:

Advisory Services

Strategic cost advisory services to the C-suite and supply chain

Contracting Strategy

Creation of a direct contracting strategy with major costs savings opportunities

Expert Advice

Training and mentorship for key personnel to make better purchasing decisions

Comprehensive Plan

Development of a comprehensive 2-Year strategic cost-savings plan

End-to-End Engagement

Engagement throughout the entire organization in a cost strategy

Ongoing Support

Assistance and support in the execution of your strategic buying Initiatives

The Benefits of Using SpendMend Purchased Services

Varied Opportunities

Identify a wide and varied selection of cost savings opportunities

Insight & Visibility

Gain new insights and visibility into your system’s spend data analytics

Complete Evaluation

Quickly and completely evaluate complex agreements and/or services

Rapid Savings

Rapidly Implement your cost savings strategy across multiple categories

Utilization & Standardization

Improve your system’s utilization, standardization & value analysis

Improved Terms

Improve negotiation with vendors on new expected pricing and terms

How Do You Assess the Performance of Your Hospital?

In today’s healthcare world, assessing your costs, your operating room financials and your marketing is the key to improvement and growth, especially in healthcare. At VIE Healthcare we have worked with some of the leading data scientists in the world to develop the following three assessments for you:

Cost Assessment

O.R. Financial Assessment

Marketing Assessment

SpendMend Purchased Services Research Reports

Non-Labor Cost Savings Initiative

COST REDUCTION

Hospital Resource Guide to
Post Pandemic Recovery

COST SAVINGS

7 Ways to Add Hospital Profit Margin
& Maintain Exceptional Patient Care

COST REDUCTION
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What Our Clients Say

Lisa and the VIE Healthcare team did an outstanding job on an expense reduction initiative at the Hospital for Special Surgery. The VIE Healthcare team worked closely with HSS staff to identify and implement significant cost-saving opportunities. Based upon their thoroughness, persistence, professionalism, and results delivered, I highly recommend the services provided by Lisa and the VIE Healthcare organization.

 

Bill Kennett, Vice President Supply Chain
Hospital for Special Surgery

I have worked with VIE Healthcare in my past two organizations, and they were highly effective in identifying and achieving cost savings opportunities in Clinical, Financial, and Operational Purchased Services. They have strong capabilities in price benchmarking, contract reviews, spend data analytics, and the ability to develop a negotiation strategy that can be implemented for deep cost savings. If your organization is looking for a cost-saving partner, I recommend VIE Healthcare.

April LaFontaine, Chief Administrative Officer
Memorial Hospital

VIE Healthcare’s measurable cost impact on our organization’s bottom line was both immediate and sustaining. I could actually see the implemented savings documented on the invoice level. VIE Healthcare brought a level of professionalism, creativity, and drive that was infectious to the management leadership throughout our organization and led to many successful cost savings initiatives for the Health System. The dual vertical and horizontal communication approach VIE Healthcare took with the staff and management unified our organization and fostered efficient and effective results. VIE Healthcare focused on many of the high-cost areas within our organization, including the Cardiac Cath Lab, OR, Laboratory, and Radiology, and was able to create substantial savings in each. In addition, VIE’s unmatched expertise in Purchased Services generated significant reductions in challenging areas such as Clinical Engineering, Dietary, and IT.

Kerry Loudermilk, Senior Vice President & CFO

We engaged VIE Healthcare to assist us in evaluating and reducing our purchased services spend, a growing segment of our operating expenses. Their patented methodology to compare actual spend to contract spend, using line-item invoice detail, helped us recover hundreds of thousands of dollars related to inaccurate billing. Further, they’ve been responsible for well over a million dollars in cost savings by partnering with us to evaluate our rates against market rates for services, ultimately leading to re-negotiated terms with our vendors, and I anticipate more to come as we continue our work with VIE. I couldn’t be more pleased with their approach and results.

 

Christine Pearson, Chief Financial Officer
AnMed Health System

Materials managers are always looking to maximize value for their organizations. At Cape Regional Health System, we wanted to have an independent set of eyes review our supply chain spend to provide us with national best practices and benchmarks. Best practices and benchmarks that are objective and independent, based on a thorough understanding of the healthcare supply chain. We weighed our options and selected VIE. Their program and people fit well for us. They were experienced, professional, and worked quickly to identify opportunities for significant cost reductions.

Kevin Burke, Director, Materials Management
Cape Regional Health System

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