The Performance Gap
You negotiated the savings. Did they reach your bottom line?
Margin compression, decentralized care and workforce gaps are structural challenges. But one opportunity remains within your control: closing the gap between the value you negotiate and the value you realize across supplies and services. 79% of senior health system executives say their organization experiences this challenge.*
Where value is lost
Why negotiated value goes unrealized
The Performance Gap spans the supply chain lifecycle, but unrealized value tends to fall into three connected areas.
Close the Contracting Gap and put more of your spend to work
When spend falls outside contracts or is too fragmented to manage, negotiated value can get lost before it reaches the bottom line.
Solutions to help close the contracting gap
- Strengthen indirect spend visibility
and
control
Vizient category experts bring specialized insight to categories that are harder to see, source and manage.
Explore Indirect Spend - Leave no dollar unmanaged across
off-contract
spend
Agentic Sourcing helps healthcare organizations identify and address off-contract purchases, engage suppliers, and uncover savings opportunities that often go unmanaged.
Explore Agentic Sourcing - Transform purchased services data
into
strategic
action
Purchased Services Analytics provides healthcare-specific insights that help organizations identify variation, benchmark performance and prioritize opportunities across purchased services categories.
Explore PSA
Close the Operations Gap and protect negotiated value
Value is lost between contract and payment due to pricing discrepancies, missed incentives and workflow breakdowns that keep savings from reaching your bottom line.
Small discrepancies across orders can add up to a much bigger challenge
Solutions to help close the operations gap
- Prevent value leakage and sustain
performance
Supply Chain Operations offers solutions to connects data, technology, workflows and services.
Explore Supply Chain Operations - Verify every price against your GPO
contract
Matching a PO to an invoice isn’t enough. We check both against your contract and flags overpayments early.
Explore P2P Price Assurance
Close the Utilization Gap and unlock more value
Even with strong contracts, opportunities remain to improve how products and services are selected, adopted and used.
The utilization gap shows up when health systems lack the visibility and support to:
- Increase adoption of preferred products and contracts
- Reduce unnecessary variation in purchasing and utilization
- Identify where utilization patterns are driving higher cost
- Connect cost, utilization and outcomes to better decisions
Solutions to help close the utilization gap
- Connect cost, utilization and
outcomes
Give clinical and supply chain teams a clearer view of where value is being realized and where it is slipping away.
Explore Clinical Integration - Build resilience before disruption
hits
Even with strong contracts and efficient operations, vulnerabilities remain when organizations lack visibility into supply chain risk.
Learn more about Reserve - Drive accountability and
performance
Strengthen supplier partnerships, monitor progress and capture greater value from every agreement.
Learn more about Commit
Results you can measure
What closing the Performance Gap actually delivers
Funding clinical capacity
Recovered value funds frontline staffing, reduces reliance on costly premium and travel labor, and keeps clinical teams focused on patient care instead of coverage gaps.
Expanded access to care
New ambulatory and community sites become possible, extending care into underserved markets without adding financial strain to the system.
Protecting operating margin
Operating margin stays protected, funding reinvestment in facilities, imaging, and surgical technology, all without cutting existing programs or services.
Insights
See what's shaping your spend, margin and supply chain
From contract to cash, explore the latest research on where healthcare spend is heading, and how to protect the value you’ve already negotiated.
Closing the contracting gap: From fragmented spend to managed opportunity
By Blaine Douglas|7 min read|Oct 15, 2026
Beyond the contract: Making every dollar perform
By Simrit Sandhu|3 min read|Aug 5, 2026
What do we really mean by a clinically integrated supply chain?
By Dan Kistner|6 min read|Sep 23, 2026
*Source: Vizient Spend Narrative and Concept Test, Phase 1 qualitative study of 62 senior U.S. hospital and health system executives, fielded July–August 2026. Results are directional due to the small sample size (N=62) and should be interpreted as indicative themes rather than statistically representative market findings.
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See where value may be getting lost across your supply chain.
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