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“How do I begin identifying purchased services cost savings?” Here are 7 strategies: 𝟏. 𝐄𝐱𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧 𝐝𝐚𝐭𝐞: If your contract is expiring in 9-12 months, you must look at it carefully. You need to understand your needs, the marketplace, and the overall cost structure and prepare yourself accordingly. 𝟐. 𝐂𝐚𝐭𝐞𝐠𝐨𝐫𝐲 𝐠𝐫𝐨𝐮𝐩𝐢𝐧𝐠: You can group your expenses (such as IT costs or outsourced laboratory services) to understand the entire categories. 𝟑. 𝐒𝐩𝐞𝐧𝐝 𝐯𝐨𝐥𝐮𝐦𝐞: We all look to the high spend volumes as they reap the most significant savings. But you can find a larger percentage of savings by analyzing the middle and even the lower portion of your spend because no one has looked at it at all. 𝟒. 𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐜𝐨𝐬𝐭 𝐬𝐚𝐯𝐢𝐧𝐠𝐬: After doing some analysis, if you find that the identified cost savings have a bigger impact, that's a great place to begin your strategy. 𝟓. 𝐔𝐫𝐠𝐞𝐧𝐭 𝐢𝐬𝐬𝐮𝐞𝐬: Not everything comes across as anticipated. You could come across growth issues, service issues, or a new strategic initiative. That’s why considering urgent issues is important. 𝟔. 𝐍𝐞𝐭 𝐧𝐞𝐰: You could have something brand new coming your way, such as a telemedicine offering. So you’d need to analyze what's going on in your organization, the marketplace, and the benchmarking. 𝟕. 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐜𝐨𝐬𝐭𝐬: You must pay attention to the year-over-year increases by your vendors. If it's greater than 5%, you need to see if it’s for a good reason or some intervention is needed there. If you’ve got an 8th, 9th, or 10th way to approach your purchase-services cost savings, I'd love to learn from you in the comments. Subscribe Here: / @viehealthcareconsulting Recommended Playlists: Data Analytics - • VIE Healthcare Consulting Hospitals Turn ... Hospital Supply Chain - • VIE Healthcare Consulting 2021 Best Prac... Audiograms - • Hospital Pricing and Terms |Is Your Hospit... Invoice ROI™ - • The Power of Invoice ROI™ The Healthcare Leadership Experience Podcast - • Purchased Services with VIE Healthcare: Co... Latest Uploads - • Building a High Performing Internal Busine... #hospitals #healthcare #healthcarefinance #linkedin