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This month, we caught up with Mike Maguire, Vice President of Strategic Sourcing at Premier, Inc., to find out what’s going on in his world of procurement.
IBISWorld: What challenge(s) do you and your company or department face right now?
Mike Maguire: We are working with our members to help them lower their costs on Purchased Services, which typically equate to 25% of their overall expenses. For many of these purchased services, our members are just beginning to source these categories on a corporate basis, and as a result have very little information relative to pricing benchmarks and the overall health of the competitive market. As many of these categories are not core to healthcare operations, my team and our members are typically not very familiar with all of the nuances of each individual category.
IBISWorld: How does/might IBISWorld help you overcome this challenge?
MM: IBISWorld helps us understand everything about a category, from a general overview to an understanding of subtle details that will influence costs. In addition, the procurement reports are a great resource for helping us educate our members on potential suppliers in a category that they may not have exposure to in the healthcare supply chain. This exposure has allowed us to introduce suppliers that have brought exceptional value to our members over historic incumbents that seemingly had the healthcare market cornered.
IBISWorld: What do you foresee happening within the procurement world in the coming year?
MM: In the healthcare industry we will continue to see a greater focus on purchased services expense management. This is an area of spend that has typically not been handled through the corporate procurement group and, as a result, the spend is typically very scattered for multi-hospital systems. In addition, with the creation of bundled payments that force the physician providers and hospitals to accept capitated total payments for certain procedures, we will see greater alignment managing costs by both parties.
IBISWorld: Tell us something interesting about yourself (hobbies, experiences, travel, etc.)
MM: As someone that travels quite a bit for work, I enjoy spending time with family on the weekends. While I have lots of hobbies, my family is my true passion.
Premier is a provider of Group Purchasing Services to over 2,400 hospitals across the country. Premier also provides numerous other services to members that can be found on the company website.