Norwalk, CT – March 14, 2024 – LogicSource, a leader in procurement services and technology, today announced the release of its innovative non-clinical Procurement Maturity Model, a comprehensive tool designed exclusively for the healthcare industry. The Procurement Maturity Model, developed by LogicSource executives, including healthcare supply chain expert Mark Van Sumeren and health system finance executive David Kirshner, aims to guide health systems toward achieving world-class procurement operations that support exceptional clinical services and financial sustainability.
Organized as a five-stage matrix, the Procurement Maturity Model categorizes non-clinical procurement capabilities into levels ranging from foundational learning to advanced world-class practices. The model stresses the importance of self-diagnosis, encouraging organizations to adopt a growth mindset and actively pursue improvement. Using this model, health systems can set realistic goals, implement strategic planning, and engage in partnerships that elevate their procurement operations.
| Low | Learning | Emerging | Leading | World Class | |
|---|---|---|---|---|---|
| Procurement Scope | Procurement office negotiates contracts for few non-clinical spend areas | Procurement office negotiates contracts for some non-clinical spend areas | Procurement office negotiates contracts for several non-clinical spend areas | Procurement office negotiates contracts for majority of non-clinical spend areas | Procurement office negotiates contracts for all non-clinical spend areas (IT, facilities, HR, etc.) |
| Spend Visibility | Little spend visibility | All AP data mapped using a standard taxonomy and integrated into a data visualization tool | Tool incorporates benchmarks, using historical performance | Tool incorporates benchmarks from outside and inside healthcare | Tool incorporates local market conditions and KPIs |
| Category Specialists | No or few non-clinical category specialists | Few non-clinical category specialists crossing several categories | Dedicated non-clinical category specialists in a few areas | Large team of non-clinical category specialists organized by category | Access to sub-specialized non-clinical expertise |
|
Staffing (Procurement Administration and Proc Ops) |
No non-clinical procurement staff | Staffing = 0.1% of total non-clinical spend | Staffing = 0.2% of total non-clinical spend | Staffing = 0.4% of total non-clinical spend | Staffing = 0.6% of total non-clinical spend |
| Contract Coverage | Low contract coverage across non-clinical categories | Contracts for a few significant categories and/or suppliers | 25% of spend under contract | 50%+ of spend under contract | 75%+ of spend under contract |
The healthcare sector is constantly pressured to deliver top-tier patient care while optimizing resources for maximum value,” explained Mark Van Sumeren, General Manager of LogicSource’s healthcare division. “Recognizing the pivotal role of non-clinical procurement in this equation, the model emerges as a critical tool for CFOs and procurement leaders by encompassing all aspects of non-clinical spending – from IT services and facilities management to professional services and beyond.”
“The healthcare sector is at a pivotal moment where the efficiency of non-clinical operations, such as procurement, can significantly impact the quality of patient care and the bottom line,” said David Kirshner, Managing Partner of LogicSource’s healthcare division. “This model is designed to guide health systems through a transformative journey, enhancing their procurement capabilities and, ultimately, their overall performance.”
“As a former health system CFO, I understand the critical role procurement plays in a health system’s success,” added Kirshner. “This model is a game-changer, offering leaders a strategic lens to view and improve their procurement functions – and ultimately improve clinical outcomes.”
LogicSource will discuss the Procurement Maturity Model in a live webinar on March 27th, demonstrating its application with a real-world health system. Watch the full webinar replay here.
