Knowledge on the Go
Knowledge on the Go
Vizient Performance Improvement Collaborative
The State of Indirect Spend and its Importance in Healthcare
14 minutes Posted Oct 3, 2022 at 2:00 pm.
] The state of indirect spend within healthcare organizations today.
] How Rush University Medical Center took a proactive approach to identifying indirect spend opportunities.
] Why Rush University Medical Center made indirect spending a priority.
] How leadership sponsorship contributed to their success.
] Where a healthcare organization should start.
] Importance of participating in the Vizient Reducing Variation Indirect Spend Benchmarking Study.
] Understanding your indirect spending and the number of vendors that you’re using within a specific category.
] Importance of aligning across various system facilities.
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Show notes
Indirect spending is defined as any purchase or services that are internal or external to a healthcare organization but fall outside of med-surg supplies, pharmacy, physician preference items (PPI), and capital. You might be surprised to learn that indirect spending accounts for up to 30% of a hospital’s total operating expenses.
Today’s guests discuss the current state of indirect spending, its importance in the healthcare space, and some of their success stories. 
 
Guest speaker:
John Andrews
Strategic Sourcing Manager - Purchased Services
Business Diversity Manager
Rush University Medical Center
 
Hawanya Blakely, MBA
Strategic Sourcing Manager - Purchased Services 
Purchasing & Contracting
Rush University Medical Center
 
Moderator:
LaTammy Marks, MBA, BSN, RN
Performance Improvement Program Director, PI Collaboratives
Vizient
 
Show Notes:
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