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.
- 20–50% of a community hospital’s operating expenses go to purchased services — yet most lack centralized oversight of this spend.
- 30%+Â of capital and purchased-services quotes contain pricing errors relative to contracted terms.Â
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
Quote Review Service for CHC Supply Trust Members
For members only, CHC Supply Trust Quote Review is a complimentary service providing expert review of quotes for both purchased services and capital equipment.
Quote review statistics reveal that more than 30% of quotes are not accurate related to the contract prices, terms and conditions. If you are a CHC Supply Trust member, reach out to our team for help in validating that your vendors are on contract, contract terms and conditions are accurate, and you are connected with contracted suppliers.
Quote review is backed by ECRI, HealthTrust Performance Group, and Valify Solutions Group.
Hospital Expense Categories
Benefits
- Granular Visibility. Line-item visibility into 1,200+ purchased services categories across seven functional areas — not just a summary total.
- Peer Benchmarking. Benchmark your purchased services spend category-by-category against similar hospitals to identify where you are overpaying.
- Contract Protection. HealthTrust-backed contract protection. When hospitals negotiate independently, vendor contract templates tend to favor vendors. CHC Supply Trust ensures terms are aligned with your interests.
- Savings of 10–70%. Members can save up to 10% on purchased services through aggregated volume. In some categories, including food service, laundry, environmental services, savings can reach 50–70%.