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04.9.2019

Most Common Healthcare Beverage Deal Myths: #1 – The Savings Estimate Is Too Good to Be True

By Tim Harms

“When you see numbers like this, it just feels too good to be true.”

 

This sentence, expressed to me earlier this week from a newly engaged client, is one that I hear surprisingly often.

Can you really save your system hundreds of thousands of dollars – potentially even millions of dollars – simply by executing an exclusive beverage deal with Coke or Pepsi? It seems like a fantasy.

The simple answer is an enthusiastic “Yes!”

Sales agents are quick to throw out big, gaudy numbers in an attempt to win business, and most healthcare systems these days are looking under every rock to save a nickel.

I don’t blame any savvy executive for questioning the six or seven figure estimates that we provide after an initial assessment of the opportunity at hand. Driving savings takes hard work, and not much in the industry is considered “easy.” A fair dose of skepticism is warranted.

But do the results back up the estimates? Is there a proven track record of demonstrated savings?

 

Track Record of Results

We’ve negotiated exclusive beverage deals for over 825 hospitals since 2005.

Below is just a sample of the recent results:

Provider Type Size Pre-Enliven Annual Spend Post-Enliven Annual Spend Annual Net Savings* Net Savings %*
National Provider 150+ facilities $16,875,457 $9,044,073 $7,831,384 46%
Southeastern Regional Provider 16 facilities $2,392,706 $1,492,133 $900,573 38%
Mid-Market, City Provider 7 facilities $976,337 $566,021 $410,316 42%
Single Northwestern Hospital 1 facility $229,688 $148,034 $81,653 36%

*Savings estimates are net of Enliven commissions. These are true savings to the hospital system.

These are not cherry-picked or exaggerated numbers. These are not one-hit wonders. These are truly representative of the results that we generate every day for our clients.

 

Beverage Deal Database

Our savings estimates are not the product of wishful thinking, but rather a conservative target, based on over a decade of data that we’ve collected through our work in analyzing, negotiating, and tracking beverage deals in the healthcare channel.

This data not only includes information pertaining to pricing, volumes, mix ratios, sponsorship funding, rebates and incentives, equipment price metrics, cost of service, package and brand information, but it is also broken out by geography, industry segment (acute care, behavioral health, long term care, etc.), and size of the system.

No one else has access to the level of detailed beverage deal data that we do.

Because of this, over the years we’ve been able to develop finely-tuned benchmarks, allowing us to accurately forecast the opportunity that an exclusive beverage deal could be for your healthcare system. All we need is a few readily available facts about your healthcare system and we can  confidently estimate what a best-in-class beverage deal might yield.

Of course, every negotiation is different, and should we work together we’ll make sure to craft the RFP to accomplish your key non-financial goals (including supporting sustainability initiatives, promoting wellness, increasing consumer satisfaction scores, etc.). But we know the targets, and we know how to achieve them.

We’re proud of the data-centric approach we take in approaching our craft, and it’s why we’re able to be so confident in the numbers we present.

 

Risk-Free to You

In fact, we’re so confident that the savings that we estimate will materialize that our standard business model is to guarantee the savings we quote and to work on a contingency basis. If we don’t deliver savings, we don’t get paid. It’s that simple. There’s no up-front costs or investment, and there’s no risk to you.

Is there any reason why your colleagues and peers at other organizations should be enjoying the benefits of this savings opportunity, while you do not?

The savings are real, and we’d love to help you go get them.

 

Interested to learn more?

Explore our case studies and webinars. Or better yet, let’s schedule a consultation to get your own free estimate.

Photo by Pepi Stojanovski on Unsplash

Subscribe to Enliven

Join over 10k other industry experts who receive Enliven's advice direct to their inboxes.

04.9.2019

Most Common Healthcare Beverage Deal Myths: #1 – The Savings Estimate Is Too Good to Be True

By Tim Harms

“When you see numbers like this, it just feels too good to be true.”

 

This sentence, expressed to me earlier this week from a newly engaged client, is one that I hear surprisingly often.

Can you really save your system hundreds of thousands of dollars – potentially even millions of dollars – simply by executing an exclusive beverage deal with Coke or Pepsi? It seems like a fantasy.

The simple answer is an enthusiastic “Yes!”

Sales agents are quick to throw out big, gaudy numbers in an attempt to win business, and most healthcare systems these days are looking under every rock to save a nickel.

I don’t blame any savvy executive for questioning the six or seven figure estimates that we provide after an initial assessment of the opportunity at hand. Driving savings takes hard work, and not much in the industry is considered “easy.” A fair dose of skepticism is warranted.

But do the results back up the estimates? Is there a proven track record of demonstrated savings?

 

Track Record of Results

We’ve negotiated exclusive beverage deals for over 825 hospitals since 2005.

Below is just a sample of the recent results:

Provider Type Size Pre-Enliven Annual Spend Post-Enliven Annual Spend Annual Net Savings* Net Savings %*
National Provider 150+ facilities $16,875,457 $9,044,073 $7,831,384 46%
Southeastern Regional Provider 16 facilities $2,392,706 $1,492,133 $900,573 38%
Mid-Market, City Provider 7 facilities $976,337 $566,021 $410,316 42%
Single Northwestern Hospital 1 facility $229,688 $148,034 $81,653 36%

*Savings estimates are net of Enliven commissions. These are true savings to the hospital system.

These are not cherry-picked or exaggerated numbers. These are not one-hit wonders. These are truly representative of the results that we generate every day for our clients.

 

Beverage Deal Database

Our savings estimates are not the product of wishful thinking, but rather a conservative target, based on over a decade of data that we’ve collected through our work in analyzing, negotiating, and tracking beverage deals in the healthcare channel.

This data not only includes information pertaining to pricing, volumes, mix ratios, sponsorship funding, rebates and incentives, equipment price metrics, cost of service, package and brand information, but it is also broken out by geography, industry segment (acute care, behavioral health, long term care, etc.), and size of the system.

No one else has access to the level of detailed beverage deal data that we do.

Because of this, over the years we’ve been able to develop finely-tuned benchmarks, allowing us to accurately forecast the opportunity that an exclusive beverage deal could be for your healthcare system. All we need is a few readily available facts about your healthcare system and we can  confidently estimate what a best-in-class beverage deal might yield.

Of course, every negotiation is different, and should we work together we’ll make sure to craft the RFP to accomplish your key non-financial goals (including supporting sustainability initiatives, promoting wellness, increasing consumer satisfaction scores, etc.). But we know the targets, and we know how to achieve them.

We’re proud of the data-centric approach we take in approaching our craft, and it’s why we’re able to be so confident in the numbers we present.

 

Risk-Free to You

In fact, we’re so confident that the savings that we estimate will materialize that our standard business model is to guarantee the savings we quote and to work on a contingency basis. If we don’t deliver savings, we don’t get paid. It’s that simple. There’s no up-front costs or investment, and there’s no risk to you.

Is there any reason why your colleagues and peers at other organizations should be enjoying the benefits of this savings opportunity, while you do not?

The savings are real, and we’d love to help you go get them.

 

Interested to learn more?

Explore our case studies and webinars. Or better yet, let’s schedule a consultation to get your own free estimate.

Photo by Pepi Stojanovski on Unsplash

Subscribe to Enliven

Join over 10k other industry experts who receive Enliven's advice direct to their inboxes.

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We Don't Want Your Money

We want to dramatically increase how much money you make - or save - with respect to beverages. And then we want to take a small percentage of that new money that we earned for you. That’s our pay-for-performance model. It ensures that our incentives are aligned. It's why our clients think of us as a true strategic business partner and not just a vendor.

Let's Start a Conversation

We Don't Want Your Money

We want to dramatically increase how much money you make - or save - with respect to beverages. And then we want to take a small percentage of that new money that we earned for you. That’s our pay-for-performance model. It ensures that our incentives are aligned. It's why our clients think of us as a true strategic business partner and not just a vendor.

Let's Start a Conversation