How Lookup’s Contract Analysis Tool Empowers Healthcare Supply Chain
Conducting contract analysis without market insights into product and pricing performance ranges from exceedingly tedious to downright impossible for healthcare supply chain teams. Running a contract analysis for a single item or small niche category may result in a fairly short list, each of which are often negotiated individually.
But doing this on a broader scale – such as considering an entire category or an entire manufacturer database – is difficult and time consuming at best. Trauma has upwards of 4,000 parts, and orthopedics is pushing 10,000. Manufacturer lists can be just as lengthy. It’s too much data to process manually.
The current state of affairs in contract analysis leaves a lot to be desired. The options essentially are limited to:
- Option #1: Working through a parts list file one by one, negotiating where you see fit
- Option #2: Sending the file off to a legacy benchmarking solution
Option one is simply not realistic for many categories and manufacturers. There’s just too much data.
Option two is lacking at best. Generally, if you already have a benchmarking partner, you’d send a file to that partner and wait upwards of 10 days for a response. When you do get a response, all it contains is pricing data. There is no insight into the size of the panel, number of facilities, or age of the data set. Is your supply chain team confident enough to use this data in a vendor negotiation?
Introducing a Better Way to Conduct Contract Analysis
We thought to ourselves, “there has to be a better way”. That’s why we built the Contract Analysis feature into Lookup by Curvo. What sets Lookup apart from manual and legacy processes? Speed, depth, and scalability, to name just a few. Let’s take a closer look:
With Lookup, healthcare supply chain teams can search for parts in a variety of ways, and each method returns results in near real-time. We probably don’t need to elaborate on why “instantly” is better than “several days”, but we will. Imagine the power this brings to your supply chain team. Instead of waiting days each time you need new data, with just a few clicks, you can get that new data nearly instantaneously, anytime you need it.
The data returned in Lookup searches is deep, rich data that goes far beyond raw pricing data. Pricing data is stratified by percentile and shown in a spray graph. You can access units sold, similar items, and items in the same GMDN category. And that’s just to name a few of the powerful search and comparison features included.
Lookup is also scalable. In addition to searching for single items as described above, the solution also allows you to upload large pricing files. A 5,000 line pricing file uploads and processes within just one minute. Compare that to the two to ten days from legacy vendors. Moreover, you can access rich pricing data for everything in the file.
The Power of Data in Pricing Initiatives
The process of executing price initiatives is cumbersome – at least when using legacy workflows. It’s very resource-intensive. And often, it seems like the manufacturer or vendor has all the power.
Additionally, legacy solutions often limit their benchmarking to regional data. When you don’t have visibility into market pricing on a national level – or by volume, your supply chain team is at a disadvantage when negotiating with vendors. Volume benchmarking data is defensible data. And it refocuses the conversation on what’s best for the provider.
With Lookup by Curvo’s contract analysis feature, you can supercharge your pricing initiatives and negotiations. Lookup gives you access to real pricing data across a wide range of hospitals and hospital systems. You can quickly see what others are paying for the exact item you’re looking to negotiate, and you can see pricing data displayed by the Press Ganey percentile scale and in a splash graph.
It’s hard to overstate the power of this data. By showing a vendor that you understand – with complete certainty – what rates are fair and which are not, you’re in a much stronger negotiating position.
How the Contract Analysis Tool Works With a Provided Pricing File
Lookup provides detailed pricing benchmarks through the product search tool. When you upload a pricing file to Lookup, the application processes your file and delivers another file back to you. We insert that benchmark pricing data directly into your provided file, giving you an instant comparison with your current quoted price for every line item that’s found in Curvo’s powerful database.
Within just a couple minutes, you can turn a contract pricing file into a contract analysis document that shows you at a glance the products in which you’re paying higher than average rates. Just imagine how powerful that level of data is to your supply chain team!
This is tremendously helpful information as you enter into contract negotiations. And it’s more accessible than ever.
Start Using Lookup by Curvo Today
Curvo is offering free access to Lookup as a service to healthcare providers during this challenging environment through July 31st, 2020. We don’t want healthcare providers to struggle through internal approvals, securing budget, or managing complicated integrations to get the answers and defensible insights they need to power negotiations. Ready to give it a try? Create your free account today.