Effective Purchased Services Management – Strategies for Success

Purchased services are contracted services required to operate a health system and represent about one-third of a hospital’s non-labor spend.  Many of these services are not directly related to patient care and are outsourced to third party service providers. Purchased services contracts are typically decentralized, touch every department within a hospital, and can range from linen and laundry to document storage to dialysis services. Due to these unique characteristics, effective Purchased Services management and cost containment can be challenging. 

This presentation will explore the challenges posed by Purchased Services and present strategies for performance management and cost reduction. 

Learning Objectives:

1.       Gain an understanding of Purchased Services 

2.       Discuss the importance of Key Performance Indicators (KPIs) in Purchased Services

3.       Review strategies for reducing Purchased Services costs

Speaker Bios:

Thomas Skorup is a Director with Premier’s Advisory Services group and has more than thirty years of healthcare consulting experience. He has worked globally with private and public healthcare providers where he has led strategic sourcing, expense reduction, value analysis, purchased services, and operational improvement projects. Mr. Skorup’s experience spans service lines such as cardiology, imaging, surgery, neurology, oncology, and clinical engineering. Prior to joining Premier, Mr. Skorup led the consulting practice for a global non-profit healthcare research organization that specializes in supply chain, evidence-based practice, and patient safety for more than 20 years. 

Mr. Skorup holds a biomedical engineering degree, MBA in healthcare administration and is a Fellow of the American College of Healthcae Executives. Thomas is also an Adjunct Professor at the Villanova University M. Louise Fitzpatrick College of Nursing.