Healthcare in Strategic Sourcing



Healthcare in Strategic Sourcing

Introduction

Healthcare is a burning topic in U.S due to the fact that healthcare cost has been increase from last few years and currently they are extremely high. In order to analyze the causes of the increase in health care costs, spending analysis is the best technique. In this paper, focus would be on Spend Analysis for Riverbend General Hospital (RGH).

Discussion

How you would approach an analysis based on the information available in the charts. What conclusions can you draw from the available information?

Spending analysis chart reflect for basic things i.e. understanding buying pattern, refining the data gathered from buying pattern, analyzing the data and formulating into a groups and finally extracting Opportunities. The basic purpose of doing spending analysis for hospitals is for profitability. Since, spending process is new in RGH, the main aim is to hollow out into the spend data and to look for opportunities. Initially, we would be looking for what RGH has been purchasing, with whom, at what price, and under what conditions. This is important since raw data can easily be gathered at short duration. For refining stage, information on the particular equipment/assets or drugs can be gathered through different sources such as through doctors, pharmaceutical companies etc. This can also be collected through using internet. Using Excel or other effective tool data can be aggregate at one place according to the prices and availability. Comparison is important which highlights similarities & difference and which is more effective and less costly (United States Government Accountability office, 2004). This is termed as Cleanse. In order to analyze the gathered data, it is beneficial if they are organized into different groups and categories that assist in identifying trend and patterns. Through RGH can opt for those Suppliers that are offering ...