Research8 min read
The Hidden Cost of Healthcare Procurement: Why Employers Overpay for the Same Services
Most employers renew their health plans year after year without ever running a competitive bidding process. This passive approach to healthcare procurement costs organizations millions in unnecessary spending.
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Key Takeaways
- 1Employers overpay 20-40% for identical healthcare services by not running competitive procurement
- 2Healthcare price variation can reach 300% or more for the same procedure within the same region
- 3Site-of-care differentials (hospital vs. independent facilities) are the largest driver of unnecessary costs