Non-Labor
Wellspring+Stockamp provides the most comprehensive approach to non-labor cost reductions in the healthcare industry. Because our approach is broader, we uncover more opportunities for cost savings and efficiencies, and we work collaboratively with clients to implement them quickly.
What Sets Us ApartWellspring+Stockamp’s comprehensive approach to non-labor cost reductions stands apart in several key respects. First, our scope is broader, going beyond the standard supply chain focus to encompass every expense except labor, bad debt, and interest.
Second, our team is larger and has more depth and more direct experience. The Wellspring+Stockamp non-labor team is the largest in the industry, and is comprised of more than 100 professionals, with an average of 15 to 20 years of experience. As a result, we are also able to bring more subject matter expertise to every engagement and ensure that our team includes experts in each of the aspects of hospital operations that we touch as part of an engagement. Our team consists of nurses, pharmacists, architects, lab technicians, dieticians and professionals in all areas including supply chain, information technology, telecommunications, facilities, compensation and benefits, among others.
Non-Labor Cost ReductionsUnlike the traditional supply chain approach that accounts for about 20 percent of a hospital’s total
operating expense, our Non-Labor solution finds opportunities for cost savings and efficiencies in nearly every aspect of hospital operations representing about 50+ percent of operating expenses. We typically implement more than 100 distinct savings initiatives within the first six months by reducing operating expenses across five broad areas:
- Clinical supply expenses,
- Pharmaceutical expenses,
- Purchased services expenses
- Human resource expenses; and
- Depreciation expenses.
We focus in three main categories: contract negotiation, utilization and standardization. With very deep expertise in contracting and pricing, we identify and implement cost-saving opportunities in supplies
and purchased services. We thoroughly examine utilization and standardization of supplies and services, bringing a best-practice perspective from a wide range of similar hospitals to implement even more savings.
Unmatched ResultsThe Wellspring+Stockamp Non-labor solution has a 100 percent track record of success that is unmatched in the industry. On average, clients realize 5 percent to 15 percent annual savings in non-labor expenses. Some benefits include:
- reduced product, service and Human Resource contract pricing,
- standardization of products and services,
- reduced product and service utilization,
- improved Group Purchasing Organization (GPO) and vendor contract compliance,
- more accurate assessment of useful life of hospital buildings, and
- effective use of hospital programs to reduce employee benefit costs and improve workflow processes.
Cumulatively, Wellspring+Stockamp has implemented over $1 billion of benefits for our clients. These savings protect the jobs of valued staff and clinicians, enhance quality, accountability, and efficiency, and help our clients better achieve their missions.