Cost Optimization in Medical & Pharmacy with Expense Reduction Analysts
In healthcare facilities, medical supplies, pharmaceuticals, and related-services are essential in providing patients with the care they need.
From doctor’s offices to hospitals to long-term care locations, facilities depend on medical supplies, devices, medical equipment and pharmaceuticals to offer optimal services in maintaining patients’ health.
With many suppliers serving the marketplace, selecting providers to meet a company’s needs in this area can be overwhelming.
As such, ERA works closely with each client to review company expenses to see if additional reductions in medical supply costs are achievable.
Cost Categories
Medical Services
Companies provide medical services such as health care benefits to employees as part of an overall compensation package, yet as health care costs escalate and health care spending increases, employees may find themselves paying more for their company health insurance.
Employer-sponsored insurance coverage for employees is known as group health insurance, and health insurance options — plans and pricing — vary by provider. Are there reasonably-priced health insurance options for smaller businesses, or other choices for low-cost medical insurance?
Given the number of available providers offering health insurance services, it probably isn’t practical for an organization to dedicate a significant amount of time or resources to managing suppliers in this cost category.
By reviewing a company’s health insurance costs — and supplier markets — Expense Reduction Analysts consultants help businesses determine if there are additional cost-savings opportunities. Recommendations on how to lower healthcare costs can lead to additional cash flow.
Medical Supplies
A tongue depressor, a medical records form, needles and syringes — these are all medical supplies. This category incorporates a wide variety of medical equipment and supplies needed by hospitals, physician offices and clinics, and even company business offices.
Medical office supplies include items such as folders and forms, while other supplies range from gloves to walkers. Medical device companies provide hospital medical supplies such as patient monitors, ventilators, and pacemakers.
With many medical suppliers in the marketplace, including medical equipment companies, selecting providers to meet a company’s needs in this non-core expense area can be overwhelming.
This is why businesses rely on ERA as a trusted advisor. Working closely with each client, experienced ERA consultants review company expenses to see if additional reductions in medical supply costs are achievable. Improving cash flow is the objective.
Pharmacy
In the area of medical services, rising pharmacy prices present a real hardship for many consumers and employers. With the increasing cost of medications, along with escalating costs for pharmacy equipment and supplies, organizations continue to search for solutions to reduce pharmacy expenses. Some companies have turned to pharmacy benefit management (PBM) providers to help them control drug spending and utilization.
Pharmacy benefit management providers oversee a company’s prescription drug program by serving as an intermediary between health plans, pharmacy companies, retail pharmacies, and patients to control drug spending and utilization. They encourage the use of generics and other lower-cost medications. Yet whether or not a company is using a PBM supplier to help them manage costs, additional cost-savings opportunities may exist.
Is the incumbent PBM offering the best services at the lowest possible cost? What about expenses for other pharmacy products or pharmacy equipment? ERA consultants work with businesses nationwide to maximize cash flow, reviewing expenses to evaluate cost-savings opportunities.
