MD Buyline Announces the Next Generation of its Purchased Services Program

The latest release of MD Buyline’s Purchased Services Program includes a cloud-based workbench to help healthcare providers plan, budget, prioritize and execute immediate and sustained OpEx reductions in their Purchased Services portfolio.

DALLAS, TX — July 12, 2013 — Today, MD Buyline announces the latest release of its Purchased Services Program™ (PSP) — a comprehensive, sustainable, cost reduction program helping healthcare providers achieve greater savings, consistency and efficiency across their Purchased Services spending.

Purchased Services typically make up 18% to 22% of a hospital’s operating budget, representing $100 billion in annual spend across the healthcare industry. Research shows that when pursued, the savings opportunities for Purchased Services range from 11% to 28%. The average hospital can quickly realize 3%+ sustainable improvement in their overall operating margin by applying industry best practices to their Purchased Services contracts.

MD Buyline’s research shows that the majority of health systems nationwide recognize that Purchased Services are difficult to standardize and optimize. In fact, most hospital CFOs and finance executives see Purchased Services as extremely broad in nature, ranging from clinical services such as dialysis and human genome sequencing to non-clinical services ranging from laundry to elevator maintenance. Additionally, many hospital executives confirm that much of the disparity in the categories stems from the services and the service providers themselves. Services such as transcription and translation are provided by national vendors while services such as housekeeping or security are provided by regional/local companies. Health system CFOs also recognized that while some Purchased Services, like waste management and food services are highly visible in the daily operations of a health system, other large spend areas like merchant card processing and document management often go unmonitored and unregulated.

Due to fragmented decision making, proliferation of local and regional vendors, and a lack of visibility, governance and standardized selection criteria, Purchased Services are an area ripe with opportunity.

The MD Buyline Purchased Service Program was designed to provide a comprehensive Value Analysis based approach grounded in high-touch service, collaboration, and education. The combination of these components is delivered in a single cloud-based solution to support the assessment, review and management of all Purchased Services initiatives.

Laurie Clayton, Regional Director of Contracting and Purchased Services for St. Joseph Northern California, states that “While there is much fragmentation among vendors, data and decision-making another barrier for optimizing Purchased Services within a health system is centralized.”

Ms. Clayton continues, “While many health systems are moving towards greater centralization there are many that aren’t ready for such a monumental change. The dual path of immediate opportunity analysis and return coupled with the cloud-based workbench, knowledge library, and benchmark data is one that can put any hospital on a path towards centralization, without forcing them to make immediate changes in the contracting function. The online platform can make every part of your Purchased Services process visible so it can become a part of the larger centralization plan.”

Ms. Clayton goes on to describe the necessity of third party expertise, “What we also realized early on in the process with MD Buyline is that although we have a vast amount of internal data regarding pricing and contracting, we recognized the need for more comprehensive data. Having access to the Contract Review and Analysis service allowed us to get more specific, industry-wide, benchmarks and best practice recommendations across all Purchased Service categories.” Ms. Clayton concludes by stating, “Because of the expansive range of purchased services it is almost impossible for a facility to have in-house experts for every contract. With the insight and data that MD Buyline brings to the table we can now do a thorough needs assessment for every Purchased Service to define the precise “service units” we really want and should be contracting for.”


According to Satin Mirchandani, CEO, MD Buyline, “Our Purchased Services Program has evolved into one that allows for hospitals to recognize immediate gains by taking advantage of our Purchased Services advisors and their in-depth analysis while implementing a fully developed and fully sustainable solution to manage all Purchased Services contracting moving forward.”

Additionally, Mr. Mirchandani states that robust data, management tools, education and service are keys to success. “As we continue to build solutions that leverage our data and expertise to lower the overall cost of healthcare, we recognize the need to give our members access to the most reliable data, technology and service. With this unique approach our members are realizing immediate and long-term positive impact on hospital profitability. ”

About MD Buyline

For over 30 years, MD Buyline Inc. has been the leading provider of healthcare clinical and technology research to drive improved financial performance across the healthcare supply chain. MD Buyline provides the majority of the nation’s hospitals with objective evidence-based information to help them drive hundreds of millions of dollars in annual savings. MD Buyline’s healthcare provider members access critical information about their supply chain purchases everyday through personalized analyst support and a comprehensive technology platform comprised of real-time information. For more information on how MD Buyline can support your facility, find us online at, and on Twitter @mdbuyline.