Supply costs are the second-highest expense for hospitals, so it makes sense to rein in high-spend areas including Purchased Services, Service Contracts, and Capital.

While purchased services can be an efficient means to outsource certain aspects of hospital operations, these costs escalate if they aren’t properly managed or monitored. From food services to laundry, linen or landscaping, purchased services typically account for 20-50 percent of a community hospital’s operating expenses.

Capital purchases and their correlating service contracts are often the responsibility of department heads who oversee clinical areas and may not have expertise in contracting or knowledge about industry leading terms, conditions and pricing. Without the necessary oversight, capital procurement and service contracts are often fragmented and lack the centralized checks and balances that guarantee the best short- and long-term value.

IT STARTS WITH A POWERFUL TEAM

The CHC Supply Trust Purchased Services, Service Contract, and Capital team is on hand to provide invaluable support, so healthcare facilities can focus on delivering quality patient care. Our expertise spans:

• Healthcare Facility Support Services: The team deeply understands the unique needs of healthcare facilities, ensuring support services like fire protection, water quality management, plant operations, clinical engineering, environmental services, linen and laundry, and food service are procured efficiently and effectively.
• Capital Acquisition: The team navigates the complexities of capital acquisition, helping facilities secure the best value for plant operations infrastructure, medical equipment, IT infrastructure, and construction projects, aligning with strategic goals and budgets.
• Regulatory Compliance: The team ensures all purchased services and capital acquisitions adhere to necessary standards, minimizing risk.
• Industry Relationships: Strong relationships with equipment manufacturers and third-party service vendors allow us to leverage industry insights and negotiate favorable terms, maximizing value for hospital clients.

BENEFIT BY QUOTE REVIEWS: QuoteReview@CHC.com

Quote Review statistics show that more than 30% of quotes are not accurate related to the contract prices, terms and conditions.

That’s another reason to work with CHC Supply Trust. Our Quote Review process ensures that you receive the most accurate prices, terms, and conditions for capital equipment, service contacts, and purchased services. CHC Supply Trust and our trusted partners, ECRI, HealthTrust Performance Group and Valify Solutions Group back Quote Review.

Quote Review Helps:

• Validate the contract or quote to ensure terms and conditions align with the GPO contract language.
• Identify savings and improve terms/conditions.
• Share updates during scheduled business reviews.
• Align capital quotes to GPO Group Buy opportunities.

BENEFITS OF CHC PURCHASED SERVICES, SERVICE CONTRACTS, AND CAPITAL

Visibility: Hospitals gain access to a whole new set of data, a complete audit of all purchased services and a bird’s eye view into each spending area. The Spend Analytics function breaks down spend into 1,200+ unique purchased services categories across seven functional areas, providing visibility into line item spending details.

Cost savings: By streamlining and tracking purchased services on one centralized platform, hospitals can continually monitor and track spending, improving their cost-saving efforts on an ongoing basis. Hospitals can also benchmark spending by category based on metrics from similar organizations to identify potential savings opportunities and adjust as necessary.

Easy contract management: Managing multiple service providers is time-consuming and tracking vendors can be challenging. Centralizing purchased services eases the burden on staff members and improves contractor accountability. Hospitals can select their preferred service providers based on staff input, price, and contract negotiation.

Contract protection: Improved protection of contract terms and conditions through alliance with HealthTrust. When hospitals sign contracts independently for purchased services or service contracts, they may be subject to greater risk since vendor contract templates tend to favor vendors.

Customer support: A dedicated support team is available to help with every aspect of purchased services, from technical support to staff training and project management.

POWERFUL PARTNERS

Partnering with CHC Supply Trust brings practical solutions to enhance efficiencies, improve quality, and strengthen financial stability. Our recommendations are tried and tested in our own hospitals. CHC Supply Trust partners with HealthTrust Performance Group, the industry’s only national, committed model GPO, to offer competitive pricing for community hospitals. CHC Supply Trust offers Purchased Services expense management powered by Valify Solutions Group, including comparing contracts and costs with similar hospitals and vendors.

Download PDF of Supply Chain Purchased Services Solution