What Will You Do When You Run Out Of Price Savings? If You Haven’t Already!

The “Law of Diminishing Returns” asserts that it requires more time, effort, and resources to generate less of a return-on-investment in just about any area of business over time. This is the situation with your price savings today! You and your national and regional group purchasing organizations have wrung the towel dry on supply chain expense savings which has resulted in little or no savings on your new or renewal contracts today. In fact, price increases are the norm in today’s healthcare economy. Yet, your healthcare organization still needs to reduce their non-salary expenses just to keep pace with inflation every year, which is averaging six percent as I write this blog article. So, what’s the answer to this dilemma?