Get in the habit
Set aside a few minutes on specific days to review your facili-
ty's recent spending and identify cost-saving opportunities.
For example, I order medications and irrigation fluids on
Monday mornings, when warehouses are full and I'm more likely to
secure the order at a reasonable price.
Know which supplies have to be sent overnight, which you'll get
free shipping for if you pay by credit card and which you'll get at a
discount if you pay within a certain time of placing the order. I've pro-
grammed my online calendar to send recurring reminders that alert
me to pay invoices from our primary orthopedic vendor within 15
days to receive 3% off the invoice price. If there's a $30,000 purchase
order sitting on my desk, that pop-up alert on my computer saves me
$900.
Review your supply contracts to ensure the deals you worked so
hard to negotiate don't expire. Our go-to contrast medication for pain
management cases went off contract within our group purchasing
organization, sending the price of 10 vials from $41 to $570. We use up
to 100 bottles a month, so the facility could have paid an extra $5,000
per month if no one was monitoring that contact.
Play hardball with vendors
Stop negotiating with vendors. That's right, tell them exact-
ly what you expect and give them one opportunity to name
their best price. Vendors who drop their initial "best price"
by 5% only after I tell them I've secured a better deal elsewhere have
zero credibility in my eyes and will not get my business. I've taken my
entire account away from a vendor who pulled that trick. Vendors
know that I'm a person of my word, that I'll do business with them as
long as they treat me fairly by providing great customer service and
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