In these audiograms, taken from Episode 14 of The Healthcare Leadership Experience, Lisa Miller is joined by John Reese to discuss hospital supply chain and why hospitals need to rethink their GPO strategy.
Audiogram A
55% of hospitals want better pricing from their GPO. A third want better services. GPOs aren’t performing for over half of healthcare organizations. My question on hospital supply chain strategy is, what will you do differently in the GPO environment post-pandemic?
Audiogram B
Operations needs to be incorporated in every discussion around spend. There are no ‘’like for likes’ when we’re talking about bedsides. Your benchmarking looks great if you have an inhouse facilities team and outsource just 1% of remaining jobs. If all those services are outsourced, benchmarking doesn’t look so great. How do hospitals attain the right mix of skilled versus non-skilled labor and third party purchased services? That’s a different discussion.
Audiogram C
Why would hospitals leave their GPO agreements if they’re getting rebates? We need to educate them around rebates versus better pricing. If you save 10% off any given item, the admin fee share back won’t equate to 10%. Healthcare organizations need to maximize their price benefit before thinking about rebates. That means leaving your GPO contract and capturing that price reduction for your organization.
Audiogram D
Hospitals often don’t tackle PPI (Physician Preference Items) pricing because they don’t have the data available, or they’re not having relevant conversations with doctors. If you’re not happy with your GPO price, consult a third party source. That can be a third party consultant, or a benchmarking software solution. The easiest way to tackle pricing around PPIs is to pick up the phone and ask ‘’Can you beat this price?’’
Subscribe Here: https://www.youtube.com/channel/UCB1WOnv5GlYGf39sMzrU6gw?sub_confirmation=1
Recommended Playlists:
Data Analytics - https://www.youtube.com/watch?v=9vAZJtC8gWs&list=PLgrQkbpxRHsxRjr6sU-2wlx0CpNyqaCU-
Hospital Supply Chain - https://www.youtube.com/watch?v=gqbYXSXtPd8&list=PLgrQkbpxRHsw8QbmxIbg8DaRGf69zTzC9
Audiograms - https://www.youtube.com/watch?v=wZTZVcYh7xc&list=PLgrQkbpxRHswFXiOrxoVDoG0djWGGkbEw
Invoice ROI™ - https://www.youtube.com/watch?v=8ln1GQRqmoY&list=PLgrQkbpxRHsz0Qmnpmii6GXm0Shpu7iT3
The Healthcare Leadership Experience Podcast - https://www.youtube.com/watch?v=gI2eJQgqAYs&list=PLgrQkbpxRHsyWomPfDD-k1rSgSJWGImA1
Latest Uploads - https://www.youtube.com/watch?v=JZsaS-Uc4go&list=UUB1WOnv5GlYGf39sMzrU6gw&index=2
