Healthcare Business Today Features Jamie Oakes’s Article on Supply Chain Cost Savings Opportunities
In a Healthcare Business Today article published November 8, 2020, TractManager Chief Sales Officer Jamie Oakes advises healthcare organizations to boost their pandemic-stricken bottom lines by being more aggressive in negotiating with their suppliers.
Facing a huge financial hit since the onset of the pandemic, many healthcare organizations began to reduce headcount. “The next obvious target is supply chains, a hospital’s second-largest expense behind labor,” says Oakes.
However, some organizations are too timid in requesting price reductions from their suppliers. By closely examining their spend and contract data, hospitals and health systems can justify much larger cost reductions from vendors than they usually request.
“Following the simple formula—analyze spending and apply benchmark data to identify categories with the highest savings opportunities, then set goals for increased savings—is a surefire way to save millions,” Oakes writes.
By taking advantage of the wealth of contract and benchmarking data available to them, hospitals and health systems can realize significant cost savings, adding tens to hundreds of millions of dollars to a bottom line each year.
“The old-school guesswork approach to cutting supply spend is not enough in today’s economic environment,” says Oakes. “Hospitals and health systems must be creative.”
Learn more about TractManager’s industry-leading Strategic Sourcing solutions and how they can help your healthcare organization.
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