August 6

3 Tips About Purchase Service You Can’t Afford to Miss


I’m sure you have realized that your purchase service buys are different from your supply purchases, since they are generally customized, labor intensive and harder to manage.  Yet, there are still best practices that can make your purchase services management easier and more predictable.  Here are three of them you can’t afford to miss:


  1. Don’t always depend on your GPOs to have the best pricing: We have discovered that GPOs don’t always have the best prices when it comes to purchase services, even with commodities like lab test outsourcing. Therefore, we recommend that you bid all your purchase services with a value of more than $100,000 annually to make sure you are obtaining the best pricing available in your marketplace.   You can also, look to your regional cooperatives for better pricing and many of these are associated with your national GPO’s.


  1. Don’t allow automatic renewal clauses in your PS contracts: Make sure you remove all automatic renewal clauses from your purchase service contracts, so you never miss a renewal date again. This will then allow you the time (90 days minimum lead time) to bid/negotiate a renewal PS contract.


  1. Develop addendums for your purchase service contracts: If you are using a vendor’s purchase service contract as your source document, then you need to add your own hospital, system or IDN addendum to these contracts to include all your corporation’s terms and conditions. This addendum would then supersede your vendors terms and conditions. It’s the best way to protect your rights under these PS contracts without getting into a lengthy battle with your PS vendors.


Managing your purchase services is an art and science that must be mastered if you are to be proficient at this new supply chain discipline. However, it is difficult to learn all these best practices on the job or even from your peers. Therefore, if you would like to learn more of these best practice like these three, please consider taking our Certified Purchase Service Specialist Course.  It could be the shortcut you have been looking for to make your purchase service job easier.



Interested in Seeing SVAH’s Purchase Service Advantage Program?  Fill out the online walk-thru for below:


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