Are You Spending Too Much on Clinical Engineering?

A Focus on Consolidating Clinical Engineering

Hospital and vendor consolidation is bringing greater awareness to the savings opportunities that have been buried in non-clinical purchased services. Most hospitals are looking for ways to assess and outsource services in an effort to cut costs.

“The cost of doing business” is one of the ways to view non-clinical purchased services yet they account for about 80% of the hospital’s purchased service spend1 and up to 25% of operating expenses. Not to mention, non-clinical purchased services are one of the most mismanaged spends in all of healthcare. When properly managed, non-clinical purchased services can be a source of cost savings (some hospitals already experiencing up to 60% savings annually2). Understanding the value of such services, and more importantly the savings you can achieve, is imperative to staying competitive in an environment of consolidation.

The biggest challenge lies in the fact that non-clinical purchased services are some of the toughest costs to uncover; however, once you are able to identify them, there is great potential for savings. Non-clinical purchased services are often spread throughout several cost centers (IT, HR, Facility, Financial, Support, Repair and Maintenance) and are widely unknown or undetected. In most cases the root cause of driving costs higher is due in part to service contracts and demand for services.

Download our white paper: "Reducing Costs and Increasing Throughput Through Non-Clinical Purchased Services"

Resouces:
1 http://www.fah.org/fahCMS/Documents/Annual%20Meeting/FAH%20Annual%20 Conference%20and%20Expo/2014FAHConference/2014%20Presentations/ Purchased_Svcs_Simpson_Presentation.pdf
2 http://idnsummit.com/2014Spring/idn14_FOT_100-215_Simpson_Shamlin_web.pdf