4 Tips for Getting the Most Out of Your Purchasing Dollars

Product cost and efficiencies of purchasing are equally important as ASCs compete in the every changing healthcare arena, says Larry Lane, partner, InstraMed Technology. The following are four of his top issues for facilities to manage in 2009.

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1. Cost increases. "Cost for supplies will be increasing by 10 percent to 30 percent, based solely on the use of petroleum in manufacture and transport of products," says Mr. Lane. "This means that GPOs’ pricing with new contracts may see big jumps over previous contracts. This will require that you assess your inventory, look for less-expensive alternative products and utilize refurbishing technology of surgical/OR products."

2. Streamline purchasing. "Efficiencies of purchasing are a must for ASCs to
compete with hospital outpatient facilities," says Mr. Lane. "This requires centers
to focus on decreasing the number of purchase orders generated weekly. Every extraneous order costs money and results in an excessive amount time left on the table by the clinical and business staff."

3. Total costs. "Know your total cost of purchasing a product," advises Mr. Lane. "Total
cost includes product cost, distribution mark-up, shipping and shipping-fuel charge, and time spent by your ASC’s accounts payable department."

4. Amount purchased. Finally, "Know the amounts of products purchased so that you can leverage your usage for value-added services or better pricing," says Mr. Lane. ‘Most ASCs don’t take time to analyze their product usage or dollars spent with each vendor. Most vendors are looking to increase in market share and dollars spent — that’s why many corporate surgery center groups have so successfully improved pricing, by establishing vendor relationships. By consolidation, standardization and utilization, ASCs can greatly benefit through better pricing."

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