Opportunity costs associated with long decision making.
In certain cases, prompt utilization of an already negotiated group purchasing agreement will save a hospital more money than bidding out the same products. This occurs because there are large opportunity costs associated with not taking savings immediately. Savings can be further enhanced by redeploying staff to contract for items not covered by group agreements.
Premier Health Alliance, Inc., Westchester, IL, USA.
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D003284:Contract Services / Q000191:economics*; D017046:Cost Savings / Q000379:methods; D003659:Decision Making, Organizational; D017598:Efficiency, Organizational / Q000191:economics; D017754:Group Purchasing / Q000191:economics*; D008421:Materials Management, Hospital / Q000191:economics*; D017008:Negotiating; D014481:United States