Healthcare systems are navigating a set of challenges never before seen in the industry. In today’s recessionary environment following COVID-19, healthcare leaders are facing razor-thin operating margins, talent shortages, significantly reduced elective procedures, declining reimbursements, and sicker patients that require more intensive care. These revenue pressures are limiting the ability for healthcare organizations to invest in strategic initiatives that support their number one priority—to provide better access and care for their patients.
LogicSource provides comprehensive procurement solutions that address these financial pressures. On average, non-clinical expenditures equate to 20% of a health system’s annual revenue. With the challenges faced by systems today, their scarce and high-value resources are not typically focused on non-clinical spending; yet efficiencies in this area will help alleviate financial pressure and fund better patient care. While GPOs address between 5-to-20% of non-clinical spend, our solutions provide a comprehensive utility for all purchased goods and services. Critically, we are not paid by suppliers, nor do we take a piece of the savings. Our fees are only tied to the services we deliver, leaving our clients with unmatched return on investment.
Non-clinical goods and services typically equate to 20% or more of net patient revenue, but health systems' scarce and high-value resources are not typically focused on non-clinical spending. However, efficiencies in this area can help alleviate financial pressure and fund better patient care.
While GPOs and system-based cost reduction improvements can address between 5-20% of non-clinical spending, they do not offer a comprehensive spend management solution for health systems. We are not a GPO; our solutions provide a utility for all non-clinical goods and services.
When we benchmark "like-for-like" spending for our healthcare clients against non-healthcare pricing, we find that, on average, healthcare organizations are paying 7-12% more for the same goods and services. Utilizing over $85B of cross-industry spend and pricing data from our client portfolio, we are able to generate significant savings and insights across your non-clinical spending.
Unlike advisors or consultants who get paid to provide advice, we do the work to deliver value for our healthcare partners. As an execution-based firm, LogicSource integrates into your team to focus on complex category management and ensure ROI realization.
LogicSource partnered with a multibillion-dollar health system to deliver value across Marketing, Construction/Facilities, HR, IT, Logistics, and Purchased Services resulting in over $20MM in non-clinical supply chain savings. Beyond the financial benefit, LogicSource proactively addresses areas of supply chain risk and continues to support the client’s focus on leveraging suppliers that meet criteria for diversity, ESG, and community engagement wherever possible.
LogicSource partnered with a national health and wellness retailer to deliver value across Marketing, Logistics, Facilities, Corporate Services, FF&E, and IT, resulting in 10% bottom-line savings across their full scope of indirect spending. Additionally, LogicSource has supported the development of a comprehensive supplier diversity program—measured and reported through its OneMarket Insights technology—to ensure alignment with the client’s overall DE&I objectives.
The first step is to request a Value Hypothesis, which provides an initial savings estimate based on our proprietary industry data and publicly available information on your system. LogicSource will then validate the savings opportunity through a Mutual Value Assessment (MVA) – a comprehensive no-cost analysis of your non-clinical spend management process.
