PRODUCTS & SERVICES


It could also include outsourcing expertise or getting a [subject matter expert’s] input on a specific proect or initiative. Outsourcing or transitioning to a purchased service should be selective and should be viewed as a way for healthcare facilities to focus on their core competency  taking care of patients. hen an organiation identifies services that are not part of their area of expertise, thereby making them viable candidates for purchased service consideration, challenges can emerge, according to aggard. Its hard to have an unbiased view when


you have been at one or two organiations your entire career, she said. ometimes you need an outside perspective to gain insights into best practices and a different way of thinking. upply Chain easily can determine what the organiation values, aggard hints.  good way to evaluate what should


be transitioned to a purchased service is to look at your organiations website, she said. hat is showcased on the web- site as the predominant service Taking care of patientsThe most innovative IT companyull-service dietaryVlinen companyupply Chain Optimiation company If your organiations website doesnt list


your function or service in your department as being the best in the industry or providing that function or service to others as a rev- enue source, a purchased service should be considered  even if it is only in the sense of getting outside expertisesupport, aggard continued. The intent is not to have all func- tionsroles in a hospital that are not patient care-focused transitioned to a purchased service, however. If a functionservice is not part of the organization’s strategic plan, outside expertise andor a purchased service should be evaluated. y and large, purchased services can benefit healthcare operations in two ways, aggard advises. kills and specialiation represent the first. The companies that provide these ser-


vices do nothing else but these services, so it is their core competency, she said. They lead their industry in creating and defining best practices. They research and identify how to continually improve the services they provide. If they do not excel in their service, they would cease to exist. Therefore, they are motivated and aligned to excel in their field and continually differentiate themselves from their competition.


ligned incentives represent the second. The purchased service company can be held accountable for their performance via service level key performance indica- tors and financial incentives for exceeding measurable goals, she said. In addition, a


Purchased Services Pick List


Supply Chain executives and observers gen- erally agree on the following as 30 notable functions for outsourcing to a third party as a purchased service.


• Biomedical Engineering • Contract Management/Optimization and Spend Analytics


• Copy and Print Management • Courier • Dietary/Food and Nutrition Services • Elevator Maintenance • Environmental Services • Equipment Distribution • Freight/Shipping • Garage/Parking Lot Management • Healthcare Technology Management • Human Resources Benefits • Information Technology • Invoice Audit Services • Laboratory • Laundry and Linen Management • Legal Services • Mail Services • Pharmacy Benefit Management • Record Retention and Storage • Recruiting and Staffing • Recycling • Revenue Cycle Management • Security • Transcription Services • Translation Services • Transport Services • Valet Services • Vending Services • Waste Management


purchased service typically results in addi- tional value-adds that the healthcare system would not have achieved on its own  i.e., training, M support, innovation, etc. These value-adds could be incorporated into the contract, which would not be available with an employeremployee relationship.


Keeping ops close  strategy worth embracing stems from trains personal experience. The best executive decision-making structure I worked within was to make sure there were no more than three levels before you connect to the top of the organiation, she recalled. The closer to the work the better the communication, buy-in, loyalty, trust and productivity. This means you are working at the core of your business and not creating so many layers that when faced with a short- or long- lived emergency, you dont have to look far to get into meaningful action mode. Those organiations that rolled up


their sleeves, knew what to do and took early action are functioning better today and may not go back to business as usual. Thats why train believes it makes so


much sense to shift non-core competency business needs out to purchased services. s a previous director of supply chain operations it became clear that unless we hired professional drivers, leased, pur- chased and maintained our own fleet of trucks, assured regulations were followed and licensing fees and liability and other insurance premiums were up to date, then we needed to outsource these services, she said. This can be to and from warehouses to various entities in and out of your system, experience in logistics with dropping off trailers, exchanging cabs, drivers, hauling equipment, etc. eave it to the experts and take these expenses off the organiation books. Operating costs at a purchased service level are easier to manage than what to do when the truck you need is stuck with a load on the road to your critical care hospital, and you dont have a back-up. ll too often upply Chain is asked to manage a variety of ancillary departments, including mail services, linen services, equipment distribution and copy services, to name a few, according to train. ll can be outsourced to a purchased service for one clear benefit, she suggests. It keeps your core supply chain to become


more fully clinically integrated managing patient care needs, she noted. This may allow upply Chain to do custom stocking projects for niche clinical care areas, stream- line real time inventory management and storage solutions while understanding the diversity of each service type that would raise clinicians, technicians and physicians to reach levels allowing them to function at the top of their licenses. train suggests three primary factors when transferring control to a third party offering purchased services. 1. Do your homework contacting user refer- ences, both those who converted from one service to the one you are considering, and if you can find those willing to talk to you, those who converted away from the one you are considering.


2. Develop contracts with clear expectations of both parties. If its not documented its not important and include clear remedia- tion and out clauses.


3. Monitor performance based on mutually agreed upon metrics and hold regular check-ins and business meetings to assure all is on track. HPN


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hpnonline.com • HEALTHCARE PURCHASING NEWS • January 2021 45


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