What is a 'Cost Analysis'? Why is it important?
As a healthcare provider, one of the biggest areas of your budget is in food purchases for your residents. Depending on the type of home; nursing, assisted living, senior living, continuing care retirement communities (CCRC), memory care, or a multi-faceted community, the availability, quality, and quantity of your food program is important.
As a healthcare Group Purchasing Organization (GPO), it is our role to secure contracts for the members we serve. PRIME Services is a family-owned company that has built a reputation for serving the communities for over 30 years. Last year, we were purchased by a family-owned GPO, the Buyers Edge Platform, home to one of the largest restaurant GPO’s in the country, Dining Alliance. This has given PRIME Services members a valuable opportunity to leverage $13 billion dollars in buying power.
During this difficult and challenging past year, PRIME Services members that have conducted a cost analysis on their food purchases, have been realizing savings of significant percentages as well as improving the number of rebates they receive on their current purchases. So, what is a “cost analysis”?
A cost analysis is simply a comparison between the same or similar food items of different distributors. For example, if you are currently using Distributor A, a cost analysis could compare your items from Distributor A with Distributor B, same or similar items. (you can review the example provided) So now you want to have your pricing analyzed, what is the process?
The process is simple. You provide your purchase history of your most common purchases and PRIME Services does the rest. The product information you provide is analyzed by our data team and compared to the exact item, or similar item, and a side-by-side comparison is provided to you in an easy-to-read format. (see the example provided) Why is it important?
It is good practice to understand what you are paying for the products you purchase. It is also very important to know we not only can save money and provide larger rebates, we compare similar products without impacting quality to find additional savings. The cost analysis is a great way to find those opportunities and work with your distributor to find cost effective alternatives.
I have a brief overview video of a cost analysis below. If you would like to have us analyze your data or would like us to contact you to discuss a cost analysis, please fill out the form on this page.
It would be our pleasure to work with you!