Our Expertise in Healthcare
The client is a 12-office gastroenterology practice in the Washington DC Metropolitan area. Prior to our engagement, they had completed the merger of multiple individual practices into one larger group. In an effort to get a better understanding on their costs related to office and medical supplies, ETP was engaged to evaluate and determine if there were price optimization strategies that they were not currently utilizing. Additionally, we were to determine if they were receiving the best of class service and value. They did not have any agreements in place providing any pricing or service requirements for their practice. One interesting finding was that they were being charged 8 different prices for the same medical supply in their 12 different offices from the same supplier.
Market Knowledge, Proprietary Tools, Project Experience and Implementation Assistance
Our consultants were able to gather extensive and detailed information from suppliers. Through our RFP process, our team of experts weighed supplier responses based on a number of criteria important to the practice, including quality, availability of electronic inventory management tools, shipping charges and price change-notification policies. They also reviewed proposed contracts for improved pricing, incentives and discounts; arranged a “Vendor Day” so that suppliers under consideration could present alternative products that offered substantial savings; and assisted in implementation with a transition period after contract signing to better manage supply. The solution on the medical side was that the supplier with 65% of their business provided the best solution and now has 100%. They also remained with their existing office supply vendor, but received new reduced pricing were able to gather extensive and detailed information.
The Results Over 12 Months
We evaluate and monitor on a monthly basis the pricing and services being delivered to provide confirmation of best pricing as well as the value and service levels required by the client. In 2014, the client saved 39.8% on medical supplies and 18.4% on office supply purchases. With this success, the client has engaged us to review their payroll, hazardous waste and print solutions costs.
39.8%
Savings on Medical Supplies
18.4%
Savings on Office
Supply Purchases