Are you getting the most competitive rates on your services contracts?
Benchmarking is a powerful tool to gain powerful insights into your Purchased Services competitive pricing so you can identify gaps and improve your negotiation process.
Most Purchased Services benchmarking products apply methodology that is used for medical/surgical and commodity products using prices based on historic contracted costs. This results in information that could be years old and does not reflect current market dynamics.
In addition, these benchmarks do not take into account non-price factors to ensure accurate comparisons. If you negotiate with bad benchmark data, you could damage your savings opportunities and supplier relationships.
Purchased services benchmarking requires a unique analytical approach that differs from the process of simply comparing product costs.
Medpricer Compare™, our benchmarking product for Purchased Services benchmarks, is based entirely on competitive bidding results and takes into account the following five key factors necessary to accurately benchmark Purchased Service costs:
- Service Volume & Frequency
- Service Levels
- Unique Category Considerations
- Vendor Standardization Potential
Your report is generated in a three step process:
- You provide the category, current suppliers, pricing and terms.
- Medpricer analyzes that information against its $14 billion sourcing database, adjusting for unique factors within the category.
- Medpricer’s Strategic Sourcing Managers apply their deep category expertise to fine-tune the report.
The resulting report is an assessment of what your health system is paying and what it should be paying compared to your current contracted rates. Your report is unique to your health system and gives you the insight you need to get more competitive rates and save money in Purchased Services.
Why our database is different:
- We use competitive bidding results and evaluate all potential cost drivers to determine competitive rates.
- Our database is built from sourcing $2.7 billion with more than 400 national and local suppliers, and it totals more than $14 billion in spend.
- Every dollar is tied to a geographic location, service volume and service level allowing us to provide the most accurate cost comparison and the most realistic savings opportunities.
- We continually build our database, compiling tens of thousands of RFP responses and contracts to ensure accuracy.
It’s time to arm yourself with accurate benchmark information and achieve more competitive rates through negotiation.
Contact us today for information on how to get your category specific, custom benchmark reports.
Click here for a full Medpricer Compare™ brochure with sample benchmark report.
Medpricer’s customers consistently experience a 3x reduction in the negotiation cycle and an average of 21% in cost savings without sacrificing end-user quality requirements.