Did you know that there is a way for most businesses to save $500-$1000 per full-time employee, per year?
Healthcare facilities are usually shocked when we tell them expenses for supplies could be as much 28 percent lower just by taking better advantage of GPO (Group Purchasing Organization) contracts. They thought they were getting full advantage of their GPO just by signing up. But in fact, it’s like signing up for a gym. Look at these two guys pictured below. Both of them have the gym membership, but only one of them is taking advantage of it.
Some vendors offer a discount for customers who pay early. One common offer is a “1/10 net 30” payment. This means that while the payment is normally due on the 30th day of the month, a customer can take a 1% discount by paying before the 10th day of the month.
Surgical vendors are always coming up with better, faster ways to do things. Such opportunities exist all over the place, but many surgical facilities have an incredible lack of curiosity about them.
9 Simple Ways Your Medical/Surgical Facility Can Reclaim Thousands of Dollars in Lost Savings. Part 5 of 9
It’s not unusual to find a facility that’s placing several purchase orders per week or even per day with the same vendor. This gets very pricey when you consider that it usually costs about $100 in administrative costs to produce 1 purchase order. That's not counting the shipping costs associated with smaller orders that do not meet the minimums for free shipping.
Invoices from linen supply companies sometimes include extra costs that you may not even notice. You may not notice this because linen supply invoices are notoriously hard to read, due to confusing codes and abbreviations. A quick call to the linen vendor will help translate the hieroglyphics into plain English.
9 Simple Ways Your Medical/Surgical Facility Can Reclaim Thousands of Dollars in Lost Savings. Part 4 of 9
Medical waste disposal companies are notorious for locking customers into 5-year contracts. These contracts pile on extra, unspecified fees and let the company unilaterally raise its rates by as much as 18% per year, even when you signed a contract for a specific price.
9 Simple Ways Your Medical/Surgical Facility Can Reclaim Thousands of Dollars in Lost Savings. Part 3 of 9
Failure to consolidate vendors is a common example of a bad leak in ASC spending. Contracting with too many vendors means you have high administrative costs, extra shipping costs and an increased overall hassle. In addition, many vendors are willing to reduce prices in exchange for an exclusive contract.
9 Simple Ways Your Medical/Surgical Facility Can Reclaim Thousands of Dollars in Lost Savings. Part 2 of 9
During my 25 years working on materials management for medical and surgical facilities, every facility I ever dealt with had significant leaks in its spending “bucket” for supplies and services. These leaks routinely amount to tens of thousands of dollars in lost savings that the owners and operators aren’t even aware of.