Medpricer Reports U.S. Hospitals Collectively Overspend an Estimated $39B Annually on Purchased Services


Medpricer, the leading purchased services cost management solution for the healthcare industry, announced today that American hospitals overspend an estimated $39 billion on purchased services, which encompass all outsourced contracts – both clinical and non-clinical.

 Purchased services account for approximately 20% of a hospital’s total operating costs. According to the American Hospital Association, registered U.S. hospitals spent $991 billion on annual operating expenses in 2017. Taking the 20% equation into consideration, this means approximately $198 billion of that spend can be attributed to purchased services expenses. Medpricer customers regularly see 24% savings on their purchased services, which equates to a total of $39 billion left on the table annually.  

To achieve meaningful savings on purchased services, Medpricer helps its customers benchmark their spend, analyze their supplier contracts, and manage the entire sourcing lifecycle through their proprietary mSource software platform. With end-to-end sourcing systems in place, healthcare providers have collectively saved $700 Million with Medpricer. 

“We are dedicated to elevating the supply chain and enabling hospitals to lead purposeful, efficient sourcing strategies,” said Medpricer CEO Chris Gormley. “With nearly 15 years of experience in gathering marketplace intelligence and with our ever-expanding product line, our growing team is eager to continue healthcare organizations achieve further sourcing independence and improve their financial health in 2019.”

For more information on Medpricer, please visit www.medpricer.com.

 



January 3, 2019


Topic Area: Press Release


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