Services

Contracting services

Most healthcare providers today spend nearly half their operating budgets on the procurement of goods and services such as supplies, drugs, equipment and contract services. The costs in many of these categories are outpacing both inflation and reimbursement, leaving providers with dwindling profit margins and challenged to provide the best patient care amidst increasing budget concerns. Areas that are particularly problematic include clinical technologies, devices and pharmaceuticals.

In order to control the spiraling costs, providers must go beyond traditional group purchasing strategies. Only by adopting new purchasing methods and technologies can healthcare organizations reach the next level of financial performance. 

THE POWER OF GROUP PURCHASING

Broadlane’s Contracting Services help you control purchasing costs by using the aggregated purchasing power of our large, committed client base.

The committed purchasing volume and high contract compliance, which is not mandated, of Broadlane clients allows Broadlane to help you obtain the supplies and services you need at substantial discounts. Our approach combines aggressive, competitive sourcing techniques with sophisticated product and market intelligence to deliver some of the lowest prices in the industry. Broadlane can help you realize procurement savings of as much as 10 percent to 25 percent, or even more in some cases.

Broadlane can develop an individualized Contracting Services solution for you that leverages seven key components:

• Comprehensive contracting portfolio
• Client-driven process
• Custom contracting
• Environmentally responsible contracting
• Diversity contracting
• Hands-on implementation support
• Supply chain technology

Broadlane’s contract portfolio is one of the most competitive in the industry. We provide contract coverage for the full range of items purchased by providers, including capital equipment, cardiology, IT, laboratory, non-medical, medical, pharmacy and surgical supplies.

The compliance track record of Broadlane clients has typically led to best-in-market pricing with industry-leading vendors. Moreover, Broadlane has developed several distinct contracting strategies that enable our clients to receive the products they desire at extremely competitive pricing, including a highly competitive bidding process that regularly results in substantial cost reductions for our clients.

Broadlane uses a variety of client-driven strategies in negotiating contract pricing. Our philosophy is to avoid tiered pricing models wherever possible. With easily standardized products such as IVs, bandages or office supplies, Broadlane contracts with one supplier for one price list for all clients. In categories where clients clearly have difficulty standardizing due to strong physician preferences, such as interventional devices and implants, Broadlane contracts with two or more suppliers to achieve the greatest amount of savings, and structures tiered pricing to allow either systems or individual providers to access the tier most advantageous to them.

Our cost analysis for clients has shown that following this broader contract coverage strategy for clinical preference products is more effective in reducing overall clinical expense than driving the lowest market price with one vendor and failing to achieve full compliance.

Client-Driven Process

Broadlane keeps your interests in mind through every stage of our sourcing and contracting process. For this reason, we established our Executive Steering Committee, an exclusive, client-driven group that reviews contract award scenarios and makes award decisions for Broadlane national contracts. In addition, we established national advisory committees of client clinicians and other end-users who provide objective product evaluations, offer contract award recommendations to the Executive Steering Committee and act as a feedback mechanism for our contract portfolio. Together, these groups ensure that clinicians and purchasing executives are involved from the development of the contract requirements through the execution of the final contract.

Broadlane’s Executive Steering Committee drives our national contracting process. Members meet monthly with Broadlane contracting personnel to develop category and contracting strategies, define business requirements and determine the competitiveness of offerings. The committee discusses, reaches consensus and provides direction on virtually all contracting issues affecting Broadlane clients. In this way, the committee represents a united and compliant front to the supplier community while overseeing the Broadlane contracting process.

Broadlane advisory committees meet in person or via teleconference on a monthly basis, following an annual calendar of committee meetings that coincides with the annual contracting work plan. Relevant agenda topics include:

• Determination of product and service requirements for upcoming contract negotiations
• Discussion of category and contracting strategies
• Assessment of standardization and utilization opportunities related to specific contracts
• Discussion of contract implementation issues
• Updates on Broadlane bids and supplier negotiations
• New programs, emerging technology and innovative products
• Monitoring of product safety issues and environmental considerations

Custom Contracting

Broadlane can design a custom contracting solution to address your unique clinical situation, to act as an interim strategy while you bridge to our contract portfolio or to manage your local purchased services or regional contracts. Custom contracting is also highly effective for purchasing difficult physician preference products. Broadlane helps you throughout the entire process, from initial identification of your criteria, through the completion of legal documents. Our analysts, subject matter experts and clinical experts will help you every step of the way.

Broadlane works with client end-users to identify contract criteria and negotiation strategy, which allows for greater consensus within organizations. The negotiation approach for custom contracts generally begins with extensive analysis of your current purchasing data in order to gain an understanding of vendor market shares and benchmark your current price points against our client-best price points. This process helps define your savings potential and the most effective local contracting strategy. For high physician-preference products, Broadlane works with your physician groups to assess opportunities for improving negotiation leverage.

Environmentally Responsible Contracting

Broadlane’s commitment to environmentally responsible contracting is fulfilled through leadership and collaboration with clients. Recognizing the importance of elevating awareness of environmental considerations, Broadlane facilitates focused discussions of environmental concerns with client advisory committees. Broadlane also ensures the promotion of environmentally responsible contracting through the presentation of issues to committees, as well as facilitates discussion of advances that contribute to safer employee workplaces and support environmental stewardship.

Diversity Contracting

Broadlane’s supplier diversity program provides mentoring support for small, minority-, women- or veteran-owned businesses as well as historically underutilized businesses to participate in Broadlane’s national bid process. Broadlane also assists clients with promotion of their internal diversity purchasing goals and measurement of their success through Broadlane diversity contracts.

Hands-On Implementation Support

Broadlane has a proven track record of successful client implementations. We can develop tailored project plans and reporting capabilities to keep your organization focused on conversion priorities and ensure that savings and compliance goals are met.

For larger or more complex providers, Broadlane has the capability to assist clinical and contracting teams in identifying and prioritizing initiatives for conversion. In those situations, Broadlane’s clinical experts work side by side with buyers, end-users and the heads of all major departments within the organization to ensure a smooth implementation process.

Supply Chain Technology

Materials managers must control hundreds of supply contracts with thousands of variations, including constantly changing prices, item availability, incentives and expiration dates. Due to the time-consuming tasks involved with updating files and manually procuring supplies, errors and missed opportunities abound, adversely affecting supply costs and complicating procurement management.

Broadlane addresses these challenges through an innovative technology solution that links e-procurement and automated data analysis in a real-time environment. This approach allows you to capture and automate supply chain procurement information and then quantify sustainable savings. Broadlane’s supply chain technology gives you the power to reduce costs by eliminating supply overpayment, managing data intelligently and improving budgeting and forecasting.

Broadlane’s supply chain technology is delivered through OnRamp™, our secure client portal, and includes:

• A comprehensive catalog of all products
• Applications that automate the electronic delivery of all transaction information and provide continuous item master synchronization
• Long-range reports on data collected over time