Supply expense growth outpacing all others
Supply costs are growing faster than wages or benefits, driven by the rampant proliferation of expensive devices. Physician preference items (PPIs) now account for 60% of med/surg spend, compared with 40% a decade ago. More than half of orthopedic procedures now use implantable devices, as do more than one-third of cardiac procedures.
PPI-containment efforts seeing limited success
Limited by siloed pricing and utilization data, and inadequate benchmarks, many hospitals’ OR leaders have difficulty identifying the biggest savings opportunities and which surgeons to enfranchise. They also lack the credible, actionable information on physician performance needed to make a convincing case to surgeons.
Pinpoint meaningful, achievable savings
Our newly expanded Supply Cost Intensive (SCI) gives members a sophisticated business intelligence tool for aggregating and analyzing supply cost data, including PPI information, from numerous sources for visibility into utilization and pricing.
Easily identify surgeons and procedures associated with the largest supply savings opportunities through:
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Comprehensive, item-level price comparisons unaffiliated with any suppliers or purchasing entities
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Functional equivalence categorization schema that include special characteristics—size, material type, product line—to enable accurate identification of similar products
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Physician utilization data, with the ability to benchmark utilization trends and spend patterns by surgeon and procedure
Secure surgeon cooperation by sharing compelling information
We provide user-friendly reports that transform data into credible, actionable insight. These include supply cost opportunity reports and surgeon performance scorecards to guide communication with surgeons.
Our dedicated team of advisors helps members make the most of these and other analytics by facilitating discussions on PPI utilization and clinical and functional equivalency of like products, and providing best practices for sharing performance data with surgeons.
Hardwire savings
To ensure members achieve and sustain cost savings, Surgical Profitability Compass provides unparalleled vendor negotiation support, including contracting strategy recommendations, negotiation SWAT sessions, and peer negotiation networks.
In addition, we frequently publish new technology clinical briefs to support value analysis committees in monitoring and evaluating new products for ongoing cost discipline.
Contact us for more information about Surgical Profitability Compass
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