The Importance of Price Transparency

Jim WebbShon Wettstein

By Jim Webb, Executive Vice President, Business Development at BroadJump, and Shon Wettstein, Vice President, Product Management, Intalere

Among the most critical struggles hospital supply chain executives face today is not truly knowing fair market prices for the goods they are purchasing on an everyday basis. This is due to a pervasive lack of information – or a lack of cost transparency – about the fair market value of medical and surgical supplies. What can they do to ensure consistent logical pricing structures and the implementation of best practices that will help achieve savings goals?

  • Empower supply chain leadership to negotiate based on current market share and spend with incumbent suppliers.
  • Have the CFO and CEO, if necessary, actively participate in key supplier negotiations and provide additional pressure when suppliers aren’t cooperative.
  • Ensure pricing is addressed in contracts.
  • Avoid signing supplier pricing confidentiality clauses.

These best practices are most successfully accomplished when supported by strong analytics and technology resources, including technology that is incorporated into everyday practice.

Luckily, disruptive solutions are entering the market to assist in a more strategic contracting process. The best solutions are proving to be efficient, transparent, tactical and easy to use.

Read our full article on the importance of price transparency and check out this success story on how Intalere OptiPrice Advantage, powered by BroadJump, helped a member save nearly $300,000 in three months.

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