Guide to Establishing Purchased Services Governance

This guide outlines the process for establishing governance in purchased services within hospitals. It emphasizes the importance of creating a structured approach that includes defining ownership of the program, standardizing category reviews, and gathering end-user feedback. The document details the necessity of engaging service line leaders to discuss utilization and service variation before making decisions or negotiations. It also highlights the significance of leveraging benchmarking and contract analysis data to gain transparency into market pricing, which aids in negotiations. The guide stresses that purchased services represent a substantial portion of a hospital's non-labor spending, thus warranting thorough vendor and contract reviews. Furthermore, it advises against limiting reviews to contract expirations and encourages a strategic plan for regular service category assessments. Continuous communication with stakeholders is essential to maintain momentum and demonstrate the value of the program.