Purchased Services

While supply chain increasingly (and necessarily) focuses on clinical outcomes, it must also shine a light on a previously overlooked area of spend— purchased services. Purchased services performed by third parties include everything from laundry to landscaping. Though not necessarily related to healthcare products, these represent a significant expense — about half of a hospital’s supply spend.

As PPE and other critical supply costs have escalated, hospitals are seeking ways to offset these expenses in other areas. One area of potential savings is contracted purchased services, which touch every hospital department. Often services procurement can be fragmented in a hospital and may lack the centralized checks and balances that keep other expenses in line. These costs typically account for about 25 percent of a hospital’s operating expenses.

For example, elevator services can be a large expense, and decentralized courier services can add up. CHC Supply Trust’s GPO includes these types of purchased services, governing pricing and resulting in significant savings.

Hospital Purchased Services Contract Categories

  • Ancillary Services
  • Facility Support Services
  • Clinical Services
  • Pharmacy Services
  • IT and Telecom
  • HR Services
  • Financial Services
  • Energy Services

Benefits

  • Savings. Like product purchasing, aggregating purchased services across multiple hospitals can result in volume-based savings. Client hospitals can save up to 10 percent on purchased services.
  • Information. Benchmark hospital purchased service spending for each category against that of similar organizations to spot potential savings opportunities.
  • Choice. Select your preferred service providers based on staff input, price and contract negotiation.
  • Ease. Reduce implementation time and maximize savings with CHC Supply Trust managing each step of the process.