According to a CFO’s View of Procurement study, greater than 60% of identified/negotiated cost savings are never realized over the life of the contract. In addition, a study done with Afaxys, Inc. found that clinical staff spend over 36 minutes per shift on supply chain duties; resulting in less patient-facing time.
Health system supply chains have less than 45% of supply chain spend flowing through the Item Master and less than 65% of purchases in healthcare being tied to valid, active contracts, concluded from Prodigo’s Benchmark Study. Studies like this continue to surface as CFOs feel the pressure to become lean and efficient. The financial impact, determined in a 2019 report from Navigant, suggests hospital systems can save $25.6 billion if they improve their supply chain operations and harness their data. Prodigo has proven that clients gain the necessary control and visibility to meet their aggressive savings goals.
Less than 65% of supply chain spend is sourced from a valid, non-expired contract; resulting in 12% (or more) savings erosion from over payments and lost price tier optimization opportunities.
70% of nurses spend over 36 minutes per shift on supply chain duties; resulting in less patient-facing time.
As many as 30% of invoices have errors; resulting in nearly 25% of supply chain administrative effort invested in cleansing and correcting prices.
15% of PO lines have a different price paid for the same item; resulting in a 12% average premium.
Increase spend transparency to 100%
Reduce special requests by over 50%
Increase overall contract utilization by more than 25%
Increase compliance through 3 lenses: clinical, operational, financial
Supply chain leaks occur in categories of spend that are not under management and/or do not benefit from a standardized procurement process. We understand that compliance requires a balance between maintaining control and managing preferences. See how operationalizing contracts, directing end-users to desired outcome, increasing efficiency, and providing total transparency can benefit your health system today.
Contact our team to request an assessment and learn more.
Prodigo Solutions, Inc. 600 Cranberry Woods Drive, Suite 300 Cranberry Township, PA 16066
Prodigo Solutions, Inc. 600 Cranberry Woods Drive, Suite 300 Cranberry Township, PA 16066 (855) 248-2208 hello@prodigosolutions.com
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