Healthcare providers, more so than most, are continuously under pressure to manage costs and do so in a market where physicians and their patients expect more. Historically, Procurement and Supply Chain organizations within healthcare have focused their efforts towards managing tactical (indirect) spend, while more strategic spend, such as Physician Preference Items (PPI) through GPO’s to generate benefits.
Providers, however, are now realizing that GPO contracts generally do not perform as well as direct negotiations with suppliers and PPI is getting more and more specific. In that sense, PPI is similar to direct spend in other industries and applying modern Procurement processes and technology presents the next frontier of price compression opportunities in the healthcare industry.
Download this paper where Tom Finn, Spend Matters Lead Analyst and Editor of Healthcare Matters, discusses how technology can help healthcare providers: