Healthcare providers face unprecedented margin pressure due to lower reimbursements.  Many leaders are targeting non-labor spend to drive future savings.

Meanwhile, process improvement continues to be a priority.  Yes, we’ve all accepted that “doing more, with less” is the norm and cost reduction decisions often create internal challenges.

This is particularly true in the Procure-to-Pay (P2P) space.  Back-office operations – in many cases driven by legacy systems – have not been a priority.  Most providers have historically opted to invest in areas that improve patient care.  As a result, many lack quality data that provides purchase activity visibility needed to make better decisions regarding non-labor spend.

Negotiating lower costs, monitoring contract compliance and implementing automation tools are the foundation of P2P cost reduction.  Estimating savings for each of these initiatives can be difficult, since results are contingent upon one’s benchmark – how efficient and effective the current processes are.

Verifying that lower costs (negotiated) – are received correctly and consistently – is an integral part of that understanding.  It’s a tedious task requiring a unique skillset very few healthcare providers possess.

P2P reviews – driven by data mining – use historical data to verify transactions are accurate and actual costs match what was negotiated.  Even though 99.9% + of transactions are typically correct, the exceptions provide significant value.

Findings provide management with a roadmap to learn and improve – via awareness of problem suppliers and/or process shortcomings. Understanding the root cause of findings helps strengthen internal controls and better understand process improvement needs.

P2P reviews help measure the future value of system enhancements or software solutions by establishing a benchmark – confirming how efficient and effective your existing systems and processes are.  For those who have recently upgraded systems or implemented automation tools – it’s an opportunity to verify expectations are being met.

Regardless of where you are in the buying process, recoveries boost current year profitability and position supply chain to reduce go forward costs.

Reviews are offered on a contingency fee and require minimal internal resources.   It’s a service offering that is timely for health care providers.