If there is one certainty about the healthcare sector, it’s that costs are on the rise! It doesn’t help that the healthcare industry continually faces complexity; disparate systems and manual, paper based processes dot the landscape. Then, there are the nuances and implications of applying federal regulations. Despite this, healthcare providers must be efficient without sacrificing quality care to their patients.
Select Medical is one of the nation’s largest providers of specialized hospital, rehabilitative and outpatient care. They offer their patients a supportive and nurturing environment — no matter where they are on their healthcare journey. Select operates more than 100 long-term acute care hospitals, specializing in medically complex cases and 20 inpatient rehabilitation hospitals offering targeted therapeutic services under the direction of a physician specializing in physical medicine. At over 1,600 outpatient centers, Select Medical also offers physical and occupational therapy, as well as occupational medicine.
In Spring 2011, Select Medical examined their organization’s procurement process and development of a cost benefit analysis related to the re-engineering and automation of their process. Subject matter experts in the field of procurement were consulted to help the organization evaluate processes and note strategic concerns. The primary goal for Select Medical’s procurement transformation initiative was to develop a center-led, best in class program focusing on two work streams which included:
- Category Management
- Technology Platform development, Comprehensive S2P, Full eCommerce, Compliance
Once the goal was defined, Select developed key guiding principles which had influence over the entire project and were referenced routinely as the project progressed to ensure the organization remained on track. They were as follows:
- An extremely intuitive purchasing tool for users (to gain high adoption)
- A platform that allowed for the processing and capturing of all categories of spend
- Integration into existing systems
- A/P efficiency
Select Medical was looking to adopt a fully integrated process supported by people and technology. Their strategic vision required a 360-degree view of transactions, visibility at any step of the process, and a guarantee that each dollar spent was qualified and brought efficiency and scale to the process.
Learn about Select Medical’s story, from technology deployment to benefits realized in the case study, Select Medical: Procurement Transformation Journey.