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August 17, 2020

5 Tips for Managing Your Purchased Services

With over 30%* of all operational expenses, purchased services can be a revealing spend category for healthcare systems. Why? Purchased services often act as a litmus test for how well an organization systematizes its operations, communicates across departments, and optimizes their resources. Ultimately over the next decade, the health systems that fine-tune their purchased services management process will thrive, while everyone else falls behind.Purchased Services Quick Facts: Purchased services include any and all services that are performed by a third-party vendor rather than done by the health system itself. Examples include landscaping services, credit card processing, and transcription. Health systems […]

August 10, 2020

Improve Supplier Relationships - TAG Inc - The Audit Group

Keys to Successful Supplier Relationships

A positive supplier relationship builds trust and loyalty – both important foundations when it comes to negotiating new contracts. Building on trust and loyalty with your suppliers can have financial reward such as: Avoid overcharges. Suppliers may be understaffed or have inefficient systems leading to charges on supplies or services higher than the agreed-upon terms. Recover and avoid duplicate payments. Duplicate payments happen in all health systems, but loyalty with suppliers can help keep them honest and return the duplicated payment before inquiring about it. Avoid charges for services not rendered. Purchased services can be complex to manage leading to […]

July 16, 2020

Top Risks of Using Blanket POs - TAG Inc - The Audit Group

Top Three Risks of Blanket Purchase Orders (POs)

Blanket purchase orders (POs) are often used to help reduce system costs, operate with only necessary inventory, and increase purchasing power. Nonetheless, blanket POs are often a source of lost funds for a healthcare system. Typically, TAG recommends limiting or eliminating the use of blanket POs because of the associated risks. We recognize, however, that some situations necessitate the use of a blanket PO. When those circumstances arise, your system should consider the following risks and implement preventative measures to reduce those risks. 1. Lack of Required Information Blanket POs often lack many of the standard controls found within traditional […]

June 9, 2020

Returned Goods Process Optimization - TAG Inc - The Audit Group

Optimizing the Returned Goods Process for your Healthcare System

Healthcare systems return an average of 4% of the products they purchase each year. Of that amount, 7% of the amount returned never gets credited back by the vendors totaling a loss of $700,000,000 annually.*no-repeat;left top;;auto in returned goods credits lost each year$700Mvertical Why does the Returned Goods Process Lose Millions? The returned goods process is an incredibly important area, spanning multiple departments of every health system. In theory, it is a relatively simple concept – return unused products and get your money back. However, the repercussions of mismanaging the process are significant. Organizations that mismanage their returned goods processes […]

May 27, 2020

Sourcing as a Strategic Means for Monitoring Rebates

Can a missed rebate really affect your hospital? The answer is yes! One of our clients in the northeast nearly missed out on a rebate of $250,000, the equivalent of purchasing a new ultrasound machine, covering the salaries of 3 – 4 RNs, or buying a new mammography system. This client did not have an effective tracking program costing them millions in missed rebates each year. Fortunately, the rebate was discovered and resolved during an audit of their procure-to-pay data. Ensuring all rebates are actually realized is pivotal in ensuring a healthcare system’s saving targets are met. no-repeat;left top;; auto […]

February 27, 2020

Procure-to-Pay End User Role - TAG Inc | The Audit Group

Missing a Piece of the Puzzle: The End User’s Role in the Procure-to-Pay Process

Typically, the players in the Procure-to-Pay (P2P) process are considered to be Supply Chain and Accounts Payable. Most systems fail to acknowledge an equally crucial player – the end user. Though many recognize that the end-user kicks off the P2P process, they do not see that the success of the P2P process often hinges on the end user’s first acts. Traditionally, the end-users’ role is relegated to requesting products and, perhaps, some aspects of receiving. The end user’s requests are focused on their needs – either individually or as a department. Because they are provided with limited information about the […]

February 12, 2020

A Recovery Firm is NO LONGER ENOUGH | TAG Inc - The Audit Group

A Recovery Audit Firm is No Longer Enough

A Recovery Audit Firm is No Longer Enough One monumental problem facing the healthcare industry: WASTE. How massive is this issue? Let’s put it into perspective: US healthcare providers spend $3,600,000,000,000 each year One-third of that $3.6T spend results in waste That amounts to $1,200,000,000,000 of waste EACH YEAR Fortunately, there are several firms within the healthcare industry that focus on recouping funds resulting from waste. These firms are known as recovery audit firms. What is a Recovery Audit Firm? The world of recovery auditing is not well known, but these firms have been around for more than 40 years […]