Part 2: Introducing Direct Sourcing to Your Organization

Read parts 1, 3, 4, and 5 of this Healthcare Purchasing News series on our blog.

The value analysis team plays a key role in lowering cost while improving the patient experience for hospitals and IDNs across the country. Determining a value-based approach that includes direct sourcing of products that no longer need to include a 20-50 percent distributor markup should include a close relationship with your direct sourcing partner.

Bethany Gleim

In Part 2 of her Healthcare Purchasing News blog series, Bethany Gleim, Director of Value Analysis at ASP Global, advises hospitals on how to identify ‘low-hanging fruit’ by choosing high-volume products that are the most commonly used to start the process of reducing cost and increasing quality.

“Stethoscopes, digital thermometers, personal protection apparel and patient belonging bags are a few of the most common, “low friction,” products many facilities use to launch and validate their direct sourcing programs. These products regularly demonstrate savings of 20 – 30% annually and easy conversion from products currently on formulary.

“A good metric for defining “high-volume” products are those with a minimum 10,000-unit annual purchase, though many large hospitals will find plenty of opportunities in products of which they buy 100,000 to 1 million or more annually.”

Working closely with your direct sourcing partner to create a cross-referenced cost-analysis can identify savings for high volume products, providing insights on pricing from the factory to your shelves. Leverage your partner’s experience to help your Value Analysis Team identify products where both quality and cost can be improved upon. Your VAT should have regular meetings, working closely with your direct sourcing partner, to continuously evaluate product value and quality.

Visit parts 1, 3, 4, and 5 on our blog to discover the value that direct sourcing can add to your organization.

To learn more about direct sourcing and how it can positively impact your VAT and its mission, contact us at