The Healthcare Matters Category

Amazon’s Move into Healthcare: Managing Tail Spend or Redefining its Last Mile?

healthcare

Everyone is consumed with Amazon’s widely reported “move” into healthcare. But what does that mean? While the prevailing wisdom suggests that Amazon has an opportunity to displace the group purchasing organizations (GPOs) and major distributors that dominate care provider supply chains, even if that’s true, is that Amazon’s endgame — managing healthcare’s tail spend?

Healthcare Needs More Mud: A Supply Chain Perspective

If ever a layman’s view of the holy war over healthcare reform had a chance to be heard, well, as a guy who’s covered the space for the better part of a decade, here goes nothing. (My disclaimer: I hold both political parties in equal contempt.) From a supply chain management perspective, there’s more fat on the healthcare bone than Arby’s latest pork belly sandwich. Origins of that old adage “doctors don’t make good businessmen” have roots in many places. But their collective decision to fully outsource their procurement and supply chain management needs (in fact, to establish healthcare’s group purchasing organization oligarchy) may be the quintessential example.

Welcoming Thomas Finn to a New Spend Matters Role as Sourcing & Supplier Management Research Director

It wouldn’t be quite accurate to welcome Tom Finn to Spend Matters, given that he has been principal editor of our sister site Healthcare Matters since 2011. But we are excited to announce that Tom is moving into a new analyst role at Azul Partners, the parent company of Spend Matters. He will cover sourcing, contracting and supplier management across industries, including healthcare. And yes, Tom will remain at the helm of Healthcare Matters.

ICYMI: The Rise of Locum Tenens in the Healthcare Industry

locum tenens physicians

In a recent post, Spend Matters’ Andrew Karpie addressed a rising trend in the healthcare industry: the use of contingent workforce, specifically the use of “locum tenens,” or temporary physicians. In his article, Locum Tenens and Healthcare Contingent Workforce Management: An Innovator’s Dilemma (Part 1), which published on Spend Matters last week, Andrew pointed to a Staff Care survey showing 42% of healthcare facility managers are currently looking for these temporary physicians, up from 32% in 2012.

Locum Tenens and Healthcare Contingent Workforce Management: An Innovator’s Dilemma (Part 1)

locum tenens

After a long period of business as usual, the entire healthcare industry has begun to change dramatically. In this two-part series, we examine some of the changes that are occurring in the temporary physician contingent workforce segment (locum tenens) and what may lie ahead. We do this through the eyes of a standout innovator and entrepreneur who has been developing an online “work intermediation platform” (WIP) approach to temporary physician staffing.

There’s More to the MedAssets Deal for Healthcare Procurement Than You Think

locum tenens

Like a saint cut apart into various relics, spread across the land to bring hope to those praying for more cost efficient and effective healthcare, the assets of MedAssets are getting hacked into strategic pieces. As my colleague Tom Finn reports on our sister site, Healthcare Matters, Pamplona, a private equity firm, is buying part of the assets of MedAssets and planning to combine its “revenue cycle management business with its Precyse business, and to sell the MedAssets spend and clinical resource management business to VHA-UHC Alliance, a network largely composed of not-for-profit hospitals.”

Prodigo and Healthcare – Customer Case Studies and Applying Lessons Learned to Cross-Industry Procurement [PRO]

Prodigo, a procure-to-pay (P2P) technology specialist in the healthcare market, has a lot to offer procurement organizations. We began our discussion on the provider in Part 1 of this multi-part Spend Matters PRO research brief. Today, we share stories from Prodigo customers who we have had a chance to speak to and who are supporting highly complex transactional procurement environments. These customers have confirmed the complexity of the environments that our briefings and demonstrations here at Spend matters have suggested. For example, one customer has seen all internal item master information become part of the Prodigo catalog. But the Prodigo system is also used to index and manage external information for direct purchases from manufacturers (enriched with third-party data as well) because the internal item master doesn't carry all the items or the information necessary to make frontline decisions. This may sound simple, but the use case and complexity is surprising indeed to provide complete buying transparency and control – and bring a range of lessons learned for non-healthcare procurement organizations as well.

Cross-Industry P2P Lessons From Healthcare, Courtesy of Prodigo [PRO]

Occasionally, a procurement technique or solution approach we see in healthcare potentially brings broad applicability to other sectors as well. We’ve learned over many years that most solutions in this market are highly bespoke given all the challenges associated with managing complex (and specialized) product information, physician preference items, billing and reimbursement and attributes unique to hospital and clinician environments. But a recent set of briefings, demonstrations and customer reference discussions with Prodigo Solutions, a procure-to-pay (P2P) technology specialist in the healthcare market segment, suggest a range of lessons from healthcare environments that we can apply to more generalized purchasing environments. This 2-part Spend Matters PRO research brief explores Prodigo’s capabilities, the customer experience and what procurement can learn from healthcare.

Attacking Costs in Healthcare: Tactical Procurement Can Address Up to 40% of a Total Operating Budget

There’s often a mistaken viewpoint that says labor costs form the dominant and often hard to address costs of healthcare service delivery in the United States (for example, the physicians, nurses, administrative staff). Granted, labor costs are a significant and core component of healthcare. But so are capital expenditures as well as overall procurement. In fact, a recent article, “7 Reasons to Merge Revenue Cycle and Supply Chain Management,” cites research from the Health Sector Supply Chain Research Consortium at Arizona State University (HSRC-ASU) that suggests the potential impact better procurement can have.