Pittsburgh’s Prodigo Solutions is nicely defined by the company it keeps. Counting roughly half of the U.S. News & World Reports Top 15 Honorees and about the same percentage of actual health care providers that made it onto Gartner’s 2016 Healthcare Industry list of Top 25 SCM performers, Prodigo has achieved frontrunner status in an otherwise fragmented solutions market.
Although known for its internal marketplace application (ProdigoMarketplace), the company continues to expand on the definition of Point of Service (POS) for care providers. Put another way, in a competitive solutions market where “provides an Amazon-like shopping experience” has become the conventional descriptor of internal marketplace applications, Prodigo’s version remains distinguished. For starters, its solution is anything but industry-agnostic. In addition to providing a google-like directed search experience, the point is, its marketplace solution is loaded with features that only make sense in a health system setting, as driving value for care providers is the company’s sole focus.
And while there’s a slick mobile capability that’s been recently added to ProdigoMarketplace, there’s also lot more. For example, there’s ProdigoBuyer (a requisitioning work flow management app), ProdigoXchange (a exchange solution that has been directly positioned against more expensive alternatives), and now, there’s ProdigoContracts.
Is someone in accounting responsible for naming Prodigo’s products?
ProdigoContracts is not a contract-authoring tool. It’s a contract management hub that stores the pricing, terms and governing conditions of any contract, whether direct with a manufacturer, a national GPO contract, a distributor arrangement or a locally negotiated purchased service agreement. Logically, all such details fit perfectly in a system that governs the point of use, as ProdigoMarketplace’s view allows it to maintain a real time tally.
The system also tracks GPO admin fees. For the first time that I know of, here’s an app that actually calculates admin fees on a continuous basis, providing hospitals a fingertip way to run “share-back reports.” The same goes for supplier discounts and rebates. As a Prodigo exec said, “if human beings can write it down, then we can capture and manage it in our system.”
As you would hope, ProdigoContracts can be configured to deliver an alert when specified contract performance criteria are met, effectively closing a loop that has confounded buyers and sellers forever. More than sending an email when a discount or rebate is triggered and more than updating the provider’s ERP with corrected pricing, the system’s event management capability can be used to modify buying and consumption behavior. For example, if a lucrative rebate opportunity is hanging in the balance, not only can notifications be sent so the required buy is executed in time, but requisitioners can be enlisted to support the opportunity ongoing (e.g. increase their par levels to ensure the rebate threshold is achieved).
Surveys indicate that more than 65% of GPO contracts are undermanaged. In fact, providers live in a world where less than 60% of routinely purchased items are even bought under a valid contract, so by definition, rebates and discount opportunities are regularly missed. ProdigoContracts addresses the problem head-on, providing users a practical way to store conditional contract details and systematically relate them to actual performance.
In a world where purchase aggregation and commitment define contract savings, here’s a POS system that keeps everyone on the same sheet of music, providing all sides to an agreement an innovative means to track and audit performance –not 30-90 days in arrears, but at the speed of business.
With compliance tools like ProdigoMarketplace becoming increasingly mainstream, the addition of ProdigoContracts is a well-timed, provider-specific addition that will positively impact their bottom lines.