Cost Savings Through Spend Control: The General Contract Policy

By AHRMM

Discussions abound about uncontrolled and unchanneled spend throughout a healthcare organization through purchase order requests, P-Card use, or petty cash. Gaining control and reducing expense starts by limiting who can authorize spending on behalf of a healthcare organization and ensure suppliers adhere contractual obligations and purchases. Working with the C-Suite, supply chain executives can effectively help channel almost all purchases to a single source, giving the organization increased control and transparency to what is being spent, how it is being spent, and why it is being spent. 

 Learn how to limit contractual authority for the procurement of goods, services, and capital within your organization through the development of a General Contract policy that controls and channels almost every purchase through the purchasing department. This session will discuss the key elements of a policy, how to gain approval and recognition of the policy, and the ramifications of bypassing the policy itself.  This process has been successfully approved, launched and implemented in a number of hospitals, with lessons that are transferrable to any size organization, from a small hospital to a large health care system.

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