A longtime leader in healthcare improvement, we’re developing new ways to revolutionize the industry.

We deliver transformative solutions that power real results. See how we can help.

Optimizing Supply Chain
Integrating Pharmacy
Maximizing Value-Based Care
Awards and Recognition

Transforming healthcare is more than our objective, it’s in our DNA. We’re dedicated to ensuring better health is just the beginning.


Guided by our values, our employees work every day to make meaningful differences in healthcare. At the core of what we do is our most valuable resource - our people. Learn more about us.

Board of Directors
Speakers Bureau

Premier is more than a GPO. Combining robust analytics with consulting and advocacy, we’re changing the healthcare landscape for the better.

Collective purchasing power lowers costs across your organization.

Intelligence plus unparalleled analytics equals data-driven solutions.

It’s only impossible until it’s not. Premier and our team of experts are transforming care delivery.

Work with Premier members to lower costs, improve quality and safety and succeed in value-based care.

A voice for better healthcare policy is a voice for you.

Working closely with our members, we’re developing products and services to solve your most complex challenges.

Lower costs, greater efficiencies and a healthier bottom line.

Proven practices that result in better outcomes.

Intersecting specialty drugs with better management and data-driven best practices.

Controlling your future with integrated care delivery practices.

More savings and ROI is a win-win.

Data diving to deliver insights you can act on.

Supporting healthcare transformation through the generation of real-world evidence.

Working closely with our members, we're developing products and services to solve your most complex challenges.

Discover what leading healthcare providers are achieving through Premier membership.

Stay informed with our white papers, webinars and e-books.

Browse our blog for a taste of what’s new and what’s next in healthcare.

Premier’s perspectives have been solicited by nationally renowned publications. Read on.

Read Premier’s latest announcements.

Catch our policy statements and perspectives on the latest in DC.

Compelling stories from the front lines of America’s health systems.

The proactive, predictive and behind-the-scenes insights you need to stay ahead in healthcare delivered monthly to your inbox.

Pennies in the Couch: How Health Systems Can Maximize Savings through Standardizing Purchased Services

Have you ever experienced the joy when finding a lost dollar after doing a load of laundry, or spotting loose change within the couch cushions? While it may not be much to start, these buried treasures can add up. When looking at healthcare spend, purchased services can sometimes be compared to these unexpected finds. Often, when delving deeper, leaders can realize these savings are hidden in plain sight.

Purchased services are crucial to hospital operations, but they are not always top-of-mind when it comes to delivering care and managing costs. These services span the healthcare landscape and can include costs that are falsely assumed to be fixed (e.g., electricity and cable), other clinical services (e.g., lithotripsy and perfusion), and a variety of other operational and financial arrangements that can number into the hundreds.  Related, purchased services represents a relatively large chunk of hospital operating budgets, often accounting for 25-30 percent of overall spend.

When looking at this area of spend, it is crucial to examine it from a utilization standpoint, versus a traditional pricing opportunity only. To do this, it is important to understand key data, benchmarks and trends to create transparency around what is being spent internally on these services, as well as to access what comparable peers are spending nationally and regionally.

Most of us know how to negotiate a better pricing, including increasing rebates and driving conversions. However, tapping into the utilization of products and services in healthcare operations and narrowing those around a few preferred vendors can yield significant savings is a frequently overlooked strategy. While standardizing supplies and clinical practice has often been a focus on the clinical side, this practice is ripe and worth exploring within the realm of purchased services.

Ideally, procurement leaders should constantly question resources and products that go into keeping the lights and operations running within a health system.

Six often overlooked areas of purchased services include:

  • Travel: What expense management platform is in place to verify mileage reimbursement to employees via GPS route tracking? To what degree do employees use this platform versus direct purchase of air, hotel, and car?
  • Wound care: What is the hyperbaric oxygen therapy conversion factor and is the organization driving inpatients to its own outpatient wound center?
  • Freight: What is the mix of packages being shipped inbound on priority overnight versus ground?
  • Legal: What is the process for engaging external counsel compared to in-house counsel?
  • Marketing: When each hospital in a larger system does an orthopedic marketing campaign, is the branding identical and/or are multiple agencies engaged?
  • Furniture: Do departments across an IDN have the same furniture standards?

Whether it’s in the cushions of the couch or in the accounts payable and general ledger spend detail in the hospital, the savings is usually hiding in plain sight. Think of contracts that require leadership from multiple departments, look for utilization savings on the back end and you’ll help drive new value back to the organization.

As part of AHRMM’s cost and quality outcomes movement, join Premier on Feb. 20, 2018 at 1PM ET for a webinar on best practices for tackling purchased services spend. Premier’s team will review common pitfalls to understanding actionable data, identifying smaller spend categories for hospital staff, and understanding the pitfalls to avoid.  This webinar is free for AHRMM and Premier members. Sign up here today!

Login Register Change Registration