5 Reasons Health Systems Leverage Prodigo’s Marketplace to Boost CQO Initiatives | Prodigo Solutions
September 16, 2022

5 Reasons Health Systems Leverage Prodigo’s Marketplace to Boost CQO Initiatives

By Doug Keverline - Senior Sales Engineer
By Doug Keverline - Senior Sales Engineer

The tenets of the CQO Movement – which stands for cost, quality, and outcomes – have been gaining traction in the healthcare industry in recent years. Cost refers to all expenses involved in caring for individuals or communities, while quality is care aimed at achieving the best possible health, and outcomes refer to the financial results driven by high-quality patient outcomes.  

To adhere to the CQO Movement, all three tenets must be considered together rather than separately. The idea is that if care receivers get better quicker and, therefore, require less resources, then the outcome is beneficial to everyone involved. 

Recent events in healthcare and, specifically, disruptions to supply chains also have supply chain teams looking to reduce risk through multisource contracts and diversified vendors, especially for critical items. More vendors mean more contracts, more items, and more prices to manage. 

Bridging the gap between contract execution and contract compliance requires the right tools. Prodigo Solutions’ suite of solutions extends the value of ERP systems by driving utilization to the right contracts across all products and purchased-service categories. Prodigo provides the tools needed to improve data quality, optimize procurement workflows, and control enterprise spend through a single-managed process. 

The nation’s leading health systems recognize the substantial impact that supply contracting can make on their risk assessments and CQO initiatives. Many of these health systems have partnered with Prodigo to control spending and drive savings. Here are the top reasons why. 

1. Operationalize Contracts & Manage Price Changes 

Driving contracted volume commitments continues to be a problem in healthcare, only increased by the sourcing struggles during the pandemic. This leads to the erosion of price incentives that are negotiated into many contracts. If the point of requisition (where the purchasing decision is being made) cannot be controlled, realizing negotiated savings will continue to be a challenge.  

Even the industry-leading contract life-cycle management applications lack the tools to affect change at the point of requisition. Most also lack tools and workflows to adequately manage the multitude of price changes that health systems face across their managed contracts. 

Prodigo’s built-in price management utility provides price automation and transparency. All price updates are governed through an approval process during which every supplier price change can be audited and staged for approval prior to being presented to requesters in Marketplace or updates sent to the ERP item master. This workflow supports vendor self-service for price maintenance while providing supply chain teams with ultimate control to enforce compliance with contract terms and commitments. 

2. Content Management & Enrichment 

Industry studies show that nearly one-third of health systems’ item masters contain bad data. Bad or incorrect data can lead to processing and reporting issues that often require manual correction.  

Prodigo’s Data Hub enhances the completeness and accuracy of an organization’s item data to ensure full attribution of data sets for accurate identification of items to optimize supply chain operations and improve patient care. Improved data quality not only streamlines transaction flow and documentation, but also improves patient safety with better formulary standardization and product identification.  

Creating a single source of truth for items and pricing can ensure that those items have the data attributes needed to correctly route and process them within the ERP and downstream systems. That could mean adding UNSPSC, custom categories, 30-character descriptions, or correcting vendor details. Making sure this information is correct up front eliminates manual processes downstream, such as superfluous approvals and vendor-match exceptions. It can also ensure data is available for point-of-use scanning or warehouse systems. 

3. Advanced Filtering Logic to Support Complex Distribution 

The increasing complexity of health systems places high demand on the supply chain due to the sizable integration of catalogs and contracts, both GPO and local. The same item may need to be in the system multiple times with different contract parameters.  

Unlike many ERP item masters, Prodigo’s Marketplace allows the same item to have multiple contracted prices, UOMs, and distribution methods. Business rules can be configured to govern the items and prices that are made visible to the requesters based on their business unit, requesting location, inventory location, role, preferred source of supply, contractual commitments, and more.  

Prodigo uses advanced search filtering logic to direct requesters to the best choice, so that the requester does not need to know the item, vendor, or contract relationship to make the right choice. 

4. Directing Search: “Buy This, Not That” 

Procurement can be a complex process for healthcare supply chain professionals due to the variation of delivery models. Often, there are multiple requesting locations that are served by different inventory locations and distribution channels that cover a constantly increasing number of contract items and prices. It is unrealistic for each requisitioner in a health system to be able to comprehend every nuance of this process. 

Prodigo’s Directed Buying ensures compliance by making it easier for every requisitioner to be able to purchase the right item, from the right source, at the right price. 

Supply chain teams can influence search results. By weighing the value and/or ranking the order in which results will be displayed to the requester, supply chain teams can shape behavior while also driving departmental strategies. Whether it’s something as simple as increasing inventory turns on selected items or something more urgent such as redirecting spend to suppliers where rebate thresholds are in the balance, Prodigo helps procurement managers drive behavior to realize their cost-savings objectives. 

Prodigo gets the order accurate at the front end of the procure-to-pay cycle, giving the supply chain the ability to control and influence the point of service where thousands of purchasing decisions are made each day. Each of those decisions impacts the supply chain’s ability to deliver the savings that it has negotiated. 

5. Reduced Risk 

Traditional procurement systems have limited search capabilities. Most don’t have robust product descriptions or photos to help verify the correct product is being purchased. That’s a risk that top hospitals aren’t willing to take.

Prodigo’s Marketplace displays detailed descriptions of products and pictures, giving requesters confidence that they’re purchasing the right product for the right application. Prodigo’s platform also proactively searches for recalls and removes recalled items from an organization’s procurement system in real-time, making them no longer available for purchase. Moreover, it can provide insights as to how many recalled products were recently purchased. And because product conversions can introduce clinical and operational risk, Prodigo’s platform can direct requesters to the new item(s) at the right time from the right vendor(s). 

Bridging the Gap 

These five benefits are among the many reasons why health systems choose Prodigo.  

Focusing on cost, quality, and outcomes, while reducing risk amid supply chain disruptions by diversifying vendors all sound great in theory. But Prodigo’s suite of solutions enables health systems to put these concepts into practice. 

Whether it’s controlling spending or driving contract compliance, Prodigo assists healthcare providers in realizing their CQO initiatives and offering high-quality patient care. 

Contact Prodigo Solutions to learn more about how Marketplace enables maximum, sustained cost savings throughout the healthcare supply chain and to request a demo of the platform. 

About Prodigo Solutions 

Prodigo Solutions is a healthcare technology company that improves providers’ financial control and reduces supply chain cost. Prodigo Solutions’ technology was purpose-built for healthcare by supply chain experts to deliver tangible results across a continuum of care. Customers who use our systems purchase more than $23 billion annually for the more than 700 hospitals they operate. 

For additional information please contact:

Prodigo Solutions’ Marketing Department
724-741-1900
marketing@prodigosolutions.com
www.prodigosolutions.com

Doug Keverline
Senior Sales Engineer