The Association for Healthcare Resource and Materials Management, the largest association of healthcare resource and material managers in the nation, hosted its annual conference in Boston, MA. Johns Hopkins Medicine announced, during the conference, that they were able to reduce their supply costs by $41 million dollars through “e-Sourcing.” While healthcare reform looks at ways to combat the high cost of healthcare supplies, Johns Hopkins initiated their own strategic sourcing strategy as a way to reduce costs and improve margins (Intesource, 2015/a: Johns Hopkins Medicine, 2014; Slocumb & Grant, 2011). Johns Hopkins negotiated significantly better contracts for medical equipment such as cardiac rhythm management devices and major radiology
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Johns Hopkins noted that since the start of the e-Sourcing initiative, it has lowered costs by over 20% and dramatically reduced the time needed to negotiate contracts (Baker et al., 2000; Johns Hopkins Medicine, 2014; Slocumb & Grant, 2011). Conversely, through an electronic self-contracting process, Johns Hopkins and other hospitals are now able to have immediate savings that they can reinvest in staffing, infrastructure, and new services, while improving patient care (Baker et al., 2000; Johns Hopkins Medicine, 2014; Slocumb & Grant, 2011). According to Slocumb and Grant (2011), MedPricer offers an e-Sourcing solution designed for the unique requirements of the health care supply chain. It also provides the flexibility to source nearly every expense category in a hospital, allowing clients to negotiate contracts during a bidding process. The e-Sourcing process ensures the best terms and value from current and prospective suppliers (Baker et al., 2000; Dominick, 2011; Medpricer, 2015; Slocumb & Grant, 2011). However, health care providers are facing more pressure than ever to save money, and save money fast. E-sourcing through MedPricer provides sourcing technology and service teams that have helped health care systems such as Johns Hopkins, find significant savings in purchased …show more content…
Also, Medpricer has electronically sourced over $2.3 billion across more than 600 projects and categorized over $38 billion in purchased services for nearly 300 hospitals (Dominick, 2011; Medpricer, 2015; Slocumb & Grant, 2011). Similarly, the competitive bidding process, with support services and technologies, will free-up an organization to manage 3x more sourcing projects in the same amount of time, allowing them to reach a target savings on an average of 42% faster. However, accessing purchased services data across multiple systems, characterizing it, interpreting it, and acting on it has never been easy, but the rewards can be great (Dominick, 2011; Medpricer, 2015; Slocumb & Grant, 2011). Nevertheless, e-Sourcing, also referred to as strategic sourcing, e-auctions, sourcing events, or reverse auctions, is a real-time active compromise between a host company and a group of pre-qualified contractors who contend against each other to win the business. Goods or services must have clearly defined specifications for design, quantity, quality, delivery, service, and related terms and conditions. Contractors bid against each other using specialized web-based software by submitting lower price bids during a scheduled time period
Johns Hopkins noted that since the start of the e-Sourcing initiative, it has lowered costs by over 20% and dramatically reduced the time needed to negotiate contracts (Baker et al., 2000; Johns Hopkins Medicine, 2014; Slocumb & Grant, 2011). Conversely, through an electronic self-contracting process, Johns Hopkins and other hospitals are now able to have immediate savings that they can reinvest in staffing, infrastructure, and new services, while improving patient care (Baker et al., 2000; Johns Hopkins Medicine, 2014; Slocumb & Grant, 2011). According to Slocumb and Grant (2011), MedPricer offers an e-Sourcing solution designed for the unique requirements of the health care supply chain. It also provides the flexibility to source nearly every expense category in a hospital, allowing clients to negotiate contracts during a bidding process. The e-Sourcing process ensures the best terms and value from current and prospective suppliers (Baker et al., 2000; Dominick, 2011; Medpricer, 2015; Slocumb & Grant, 2011). However, health care providers are facing more pressure than ever to save money, and save money fast. E-sourcing through MedPricer provides sourcing technology and service teams that have helped health care systems such as Johns Hopkins, find significant savings in purchased …show more content…
Also, Medpricer has electronically sourced over $2.3 billion across more than 600 projects and categorized over $38 billion in purchased services for nearly 300 hospitals (Dominick, 2011; Medpricer, 2015; Slocumb & Grant, 2011). Similarly, the competitive bidding process, with support services and technologies, will free-up an organization to manage 3x more sourcing projects in the same amount of time, allowing them to reach a target savings on an average of 42% faster. However, accessing purchased services data across multiple systems, characterizing it, interpreting it, and acting on it has never been easy, but the rewards can be great (Dominick, 2011; Medpricer, 2015; Slocumb & Grant, 2011). Nevertheless, e-Sourcing, also referred to as strategic sourcing, e-auctions, sourcing events, or reverse auctions, is a real-time active compromise between a host company and a group of pre-qualified contractors who contend against each other to win the business. Goods or services must have clearly defined specifications for design, quantity, quality, delivery, service, and related terms and conditions. Contractors bid against each other using specialized web-based software by submitting lower price bids during a scheduled time period