Health care wastes money right and left on purchases, and needs efficiency more than ever, according to Dave Pennino, Founder and CEO at LogicSource. His company optimizes client spending on the 20-25% of revenue spent on indirect purchases or “goods not for resale” (purchase services in health care).  This is why LogicSource has made healthcare such an important focus of their business.

Pennino lists a few of the myriad products and services where LogicSource can cust costs, most of which apply to health care: facilities, design and construction, media, logistics, waste management, software, and even obscure topics such as elevator maintenance. One health care executive compared his field to wedding planners: everything costs more than it would in other industries.

Pennino suspects that health care is less cost-conscious than other large industries because it has a mission-based culture instead of a profit-based culture. The financial officers compare their costs to those of other health care institutions instead of to other industries.

But inflation and other recent economic events have put unprecedented financial pressures on health care, which can’t raise prices or restructure operations as easily as less regulated industries.

See the video for more examples of ways to cut healthcare costs, Pennino’s management style, background on the company, and more.

Learn more about LogicSource: https://logicsource.com/healthcare/

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