With US healthcare providers facing many uncertainties, getting the right equipment and supplies at the right cost has become a critical challenge. That’s why a leading integrated payer-provider organization asked us to help them transform their procurement function. Their existing contract with a Group Purchasing Organization (GPO) was about to expire and they wanted to use that as an opportunity not only to secure a new contract, but to explore new ways of working in what may be a very different world.
They asked us to design a new operating model, that focused on strategic value adding activities and category management, while accessing the commercial market for transactional activities. We developed this model by working closely with internal stakeholders and by analyzing the market and the way other health care organizations manage their supply chains. This analysis enabled our client to understand the changes to GPOs we’re likely to see over the next three to five years and then to revise and refine their options for change.
At the same time, we worked on the business case for the transformation. In putting that together we identified a number of new ways of working, from partnerships to the use of new analytics tools, which would bring significant savings over the next five years.
As a result of this work, the client now has a clear case for moving forward with a procurement transformation that will revolutionize how they purchase products and services, and help them succeed in a changing healthcare landscape.