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Unlock Hidden Value in Hospital IT Investments
Staffing shortages, rising operational costs, Medicaid cuts, and tariffs are threatening hospital margins. Discover how you can create a single, trustworthy source of truth to predict your hospital’s tariff exposure, spotlight hidden waste, and turn insights into immediate savings—without having to overhaul your data systems. We discuss how to build an executive playbook that shows you exactly where to unlock 20-30% cost-savings.
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Unlock Hidden Value in Hospital IT Investments
- 1. Unlock Hidden Valuein Hospital IT Investments Enhancing efficiency through analytics in healthcare Confidential - Property of VSeeIQ
- 2. Hospitals are Standing ata Financial Breaking Point This is not just a tough year — it's a structural shift. What worked before won't be enough going forward. • Margins are collapsing even well-run systems are struggling to stay above water. • Labor costs have surged while staffing shortages persist across clinical and support roles. • Supply chain costs remain volatile with inflation, backorders, and pricing inconsistencies eroding budget control. • Revenue growth is stagnant, despite increased patient demand and service volume. • Payer pressure is intensifying with denials rising and reimbursement rates tightening. • Capital markets are tightening making access to investment dollars harder than ever. • Regulatory and ESG pressures are growing, adding complexity and compliance costs. • Boards are demanding transformation, not incremental improvement.
- 3. Hospital Executives AreDemanding ROI, Not More Disruption “CEOs are asking their CIOs for more than technical promises... Executives want evidence of measurable impact on strategy, finances, workforce satisfaction, and patient care.” Becker’s Health IT • Hospital CEOs are no longer swayed by tech buzzwords — they want proof of impact. • CIOs are being asked: ▸ Does this align with our strategy? ▸ Will it improve staff productivity? ▸ Where is the measurable ROI? • Executives are frustrated: Why haven’t years of IT disruption delivered results? • Clinical and financial leaders are losing confidence in analytics platforms that can’t deliver clarity.
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- 5. However… The Problem Isn’tthe Software — It’s the Data They Run On AI won’t fix data problems — it will expose them. • Hospitals have invested in EHRs, ERPs, BI tools, and now AI platforms — expecting clarity, automation, and intelligence. • But the insights are inconsistent, the dashboards are distrusted, and clinical ROI is still unclear. • The root issue? These platforms are powered by fragmented, duplicate, or missing data. • Bad data in → misleading insights out. AI can’t fix that — it magnifies it. • AI, EHR, or analytics — they’re just shells. Their value depends entirely on the trustworthiness of the data inside. • Until we fix the content, software and AI investments remain high-risk and low- yield.
- 6. The Problem: A FragmentedData Landscape Every Hospital has software. Very few have clarity. • Hospitals run on three disconnected systems: ▸ MMIS for supply chain ▸ EMR for clinical care ▸ FIS for revenue and finance • These platforms were never designed to talk to each other. • To make them work, hospitals have layered on manual workarounds, data bridges, and custom interfaces. • The result: a complex, fragile IT environment prone to error, delay, and cost. • Despite billions spent on ERP and EMR platforms, financial and operational ROI remains elusive. All hospitals follow the same basic rules to purchase, record and get paid….it is how they get there that’s different Just to get at “What Did I Buy? Did I pay the right price?” CDM “Did I get paid for it?” CIS “Did I Use It?” MMIS “What Did I Buy?” Healthcare Business Technology: A gapped Infrastructure = adhoc work arounds Facility nationally recognized - Top 10 Data & Management Integration
- 7. Example of RawData Ingested by Hospital Data Lakes Raw Data Derived From SCM Systems Raw Data Derived From EMR Systems Multiple Descriptions for the same item Multiple Catalog numbers Multiple Prices Same Vendor in System 3 unique ways Procedure Requires a 1. Femoral Hip Stem, 2. Acetabular Cup 3. Shell, Acetabular 4. Cup Liner 5. Femoral Head Ingested Raw, would undervalue procedure cost by 50%
- 8. The Results ofData Fragmentation “Our executives don’t trust the data, and that slows everything down.” - Beckers IT • Every hospital has built its own“language”for products, procedures, vendors and codes. • Even hospitals using the same EHR or ERP can’t communicate across systems. • Manual reconciliation is now a full-time job across supply chain, finance, and clinical teams. • Human bias, guesswork, and outdated rules dominate how data is linked and reported. • Internally: Hospitals operate in a perpetual data fog – decisions are delayed, reports are distrusted. • Externally: Collaboration across hospitals, systems, and payers is functionally broken
- 9. 9 Why Data GovernanceNever Takes Hold ▪ We are very familiar with providers who have spent >$1.5B to implement their EMR - However: ▪ The large number of individuals involved makes process standardization and effective education impossible ▪ Inconsistent performance and individual subjectivity undermines data governance ▪ CIOs and CFOs increasingly report that ‘low confidence in internal reporting’ is a key barrier to digital transformation.”— Healthcare IT News, 2023 ▪ The Universal End Result: ▪ Executives second-guess dashboards ▪ Finance doesn’t reconcile with supply chain ▪ Physicians ignore “BI tools” because they’re incorrect and not actionable The Inability to Establish Data Governance Undermines Interoperability
- 10. The Financial Tollof Fragmentation What Fragmented Data Really Costs – Per 100 Beds $3M–$6M/year in lost reimbursement ▸ Due to undercoding, missed charges, or unlinked usage data $2M–$4M in supply chain waste ▸ Redundant orders, price variation, and inability to benchmark $1M–$2M in excess admin costs ▸ FTEs spent manually reconciling data that systems should unify $5M+ in delayed or failed system rollouts ▸ Time wasted integrating data across M&A, BI, AI, and ERP projects Risk to patient safety, quality scores, and executive confidence Total Estimated Loss: $10M–$15M+ per year, per 100 beds
- 11. ACCURATE INVENTORY AUDITS ENHANCED ANALYTICS IDENTIFY TRENDS ANDINEFFICIENCIES IMPLEMENTING ACTIONABLE STRATEGIES The VSEE Solution: Fix the Data……………….. …………..Fix the Problem
- 12. The VSEE Solution:Fix the Data…..Fix the Problem! Ubiquitous & Universal, Data Transformation An End-to-End Model to Support Total Cost Management Data/Content Management Acute Ambulatory Post/Sub-Acute MFR PAYER ▪ ACO Strategy ▪ Bundle Payments ▪ Pay for Performance ▪ Value-based Purchasing ▪ Population Management ▪ New Performance Model for Vendor Neg. ▪ Distribution Strategy ▪ Self Contracting/GPO Strategy ▪ Dynamic Forecasting ▪ Actuarial/Cost Modeling Long-Term Palliative MMIS Clinical Revenue Business Intelligence / Performance Management / Reporting
- 13. What Makes VSEEUnique: VSEE uses Supply Chain Data as the foundation for a Virtual Content Exchange Engine What makes Supply Chain data unique and critical? Only Supply Chain Data has a 1 to 1 relationship between an item and how its coded and used. In all other departments the relationship is 1 to many Confidential - Property of VSeeIQ VSeeIQ’s solution requires no additional training, IT work, or system changes—hospitals continue operating as usual while we deliver clean, accurate, and actionable data.
- 14. 14 The Content ExchangeEngine “Patches”Data Gaps inherent in Customer Data Lakes and/or Their Last Mile Products Clinical Utilization ▪ Normalizes Procedure Naming ▪ Audits and repairs missing data in patient records ▪ Tracks Total Cost of Procedures ▪ Links product purchases to procedures ▪ Post-procedure cost and practice analytics Financial Performance ▪ Monitors/Maintains CDM accuracy ▪ Updates procedure costs for accurate physician costing ▪ Virtual GL allows for granular spend reporting ▪ Enables Zero Based Budget Management Spend Management ▪ Normalized vendor/catno management ▪ Enriched data Attributes links items to clinical utilization ▪ Repaired/standardized uom’s ▪ Robust Consistent Categorization ▪ Automated identification of items required to be in IM Repaired Clinical Records Normalized Spend Data Financial Data Integration Enhanced Device Attributes Master Catalog Virtualization
- 15. 15 Speed to Value ▪With over 50,000 embedded normalization and enrichment triggers, even the most unique hospital configurations are handled automatically ▪ No integration headaches – Vsee runs outside the hospitals core IT stack, ingesting raw files and returning accurate, linked data ▪ In just 2-6 weeks after data ingest, hospitals receive: ▪ Repaired data lakes ▪ Identified savings opportunities ▪ Identified Margin Improvement Opportunities ▪ Activated data governance programs – centers of excellence Structure Contents Meaning 01 02 03 Business & Clinical Intelligence VSEE’s solution doesn’t require hospitals to change their workflows, or adopt new software. All custom data-handling logic is virtualized inside Vsee’s external Content Exchange Engine Information VSEE Ingests Raw/Fragmented/Corrupted Data and Rapidly Returns:
- 16. Raw Data AfterProcessing Through VSee’s Virtual Content Exchange Engine – Normalized, Repaired and Enriched… SCM Data Manufacturer Parent/child Normalized Catno Repaired Description standardized Data Enriched to include connectors that enable organic connections to EMR data and advanced analytics Description standardized Data Enriched to include connectors that enable organic connections to EMR data and advanced analytics Description standardized Data Enriched to include connectors that enable organic connections to EMR data and advanced analytics
- 17. Raw Data AfterProcessing Through VSee’s Virtual Content Exchange EMR Data - Audit and Repair Procedure Audit Module reviews EMR data daily to flag procedures for further review We have created custom business rules for each procedure that identify which components should always be used and the amount that should be used
- 18. Raw Data AfterProcessing Through VSee’s Virtual Content Exchange - Automated Repair Algorithyms UOM Processing toolsets automatically review/identify UOM issues and update corrected UOM. Ensuring Accuracy of Analytics
- 19. Raw Data AfterProcessing Through VSee’s Virtual Content Exchange - Automated Repair Algorithyms The Hospital GL table is loaded into the Category mapping tool. All items are reviewed at the UNSPSC/MODIFIER level and either confirmed as a valid link or linked to the appropriate GL category. Reports are generated at the item level with suggested GL for each item. And are linked to PO/Invoice spend for budgeting Current Hospital GL Suggested GL
- 20. Post Processing ThroughVSee’s Virtual Content Exchange – VSee Builds Custom AI Integrated Plug and Play Applications Proprietary AI driven item analysis identifies similarities, key differences, etc.. And ranks items with a similarity score Item images to assist in review process Workflow processes for assigning user reviews, tracking responses, ordering samples for product fairs/clinical review
- 21. System Price Variances Confidential- Property of VSeeIQ Comparing Last Price Paid to EPIC Cost Price Variance Type Sum of Extended Cost Sum of Price Variance Difference EPIC Price is Lower than PO Price $310,752 $168,722 Grand Total $310,752 $168,722 Detail Values OR_MANUFACTURER_NAME OR_CATALOG_NO_FORMA TTED OR_ITEM_DESCRIPTION EPIC Price to EA Last Cost To EA Contract Cost to EA Sum of QUANTITY TOTAL Sum of Extended Cost Sum of Price Variance Difference MEDLINE INDUSTRIES INC 2118 $91,207 $91,609 JOHNSON & JOHNSON HEALTHCARE 150440105 COMP FEMORAL KNEE SZ 5 LEFT CEM CR (0093794) (AUTOREQ) $4,780 $6,950 $6,950 1 $4,780 $2,170 JOHNSON & JOHNSON HEALTHCARE 150440105 Total 1 $4,780 $2,170 JOHNSON & JOHNSON HEALTHCARE 150640004 BASEPLATE TIBIAL SZ 4 CEM COCR ATTUNE (0091889) (AUTOREQ) $2,360 $3,440 $3,440 2 $4,720 $2,159 JOHNSON & JOHNSON HEALTHCARE 150640004 Total 2 $4,720 $2,159 JOHNSON & JOHNSON HEALTHCARE 1516-20-705 INSERT TIBIAL 5MM SZ 7 FIX POLY ATTUNE (0081149) (AUTOREQ) $672 $993 $993 6 $4,032 $1,923 JOHNSON & JOHNSON HEALTHCARE 1516-20-705 Total 6 $4,032 $1,923 JOHNSON & JOHNSON HEALTHCARE 1516-20-805 INSERT TIBIAL 5MM SZ 8 FIX POLY ATTUNE (0081157) (AUTOREQ) $672 $993 $993 5 $3,360 $1,603 JOHNSON & JOHNSON HEALTHCARE 1516-20-805 Total 5 $3,360 $1,603 JOHNSON & JOHNSON HEALTHCARE 150640003 BASEPLATE TIBIAL SZ 3 CEM COCR ATTUNE (0091888) (AUTOREQ) $2,360 $3,440 $3,440 1 $2,360 $1,080 JOHNSON & JOHNSON HEALTHCARE 150640003 Total 1 $2,360 $1,080 JOHNSON & JOHNSON HEALTHCARE 150640006 BASEPLATE TIBIAL SZ 6 CEM COCR ATTUNE (0091891) (AUTOREQ) $2,360 $3,440 $3,440 1 $2,360 $1,080 JOHNSON & JOHNSON HEALTHCARE 150640006 Total 1 $2,360 $1,080 Price in EPIC Price in Materials System
- 22. VSEE’s Speed toValue in Three 2-week Sprints 22 Advanced Analytics with Custom Portal to Socialize Vital Information Results Tracking Phase 1 Bought-Used-Sold Opportunities and strategies developed Phase 2 Spend Data/Utilization (EMR) and Financial Data is normalized, repaired and enriched Phase 1 Processed data is linked custom rules are assigned, Virtual Master File finalized as the Source of Truth Phase 2 Integrated Data in VSEE’s Multi- dimensional Data Array. API’s developed for reintegration back into hospital end use apps Phase 3 Cleansed Enriched SSoT Synch CIS, MMIS, FIS Data Array Cleansed Normalized Repaired Post Sourcing Analytics CIS, MMIS, FIS Data Array Fully repaired data updates Hospital’s Data Lake and BI tools Db’s Phase 3 Value
- 23. ▪ Hospitals areunder extraordinary financial pressure with no margin for failed investments. ▪ Billions have been spent on software and AI – yet clarity efficiency, and ROI remain elusive ▪ The root cause isn’t the tech – it’s the fragmented, unstructured data flowing through it. ▪ VSee Labs fixes the content without disruption: ▪ No new software to install ▪ No workflow changes ▪ No waiting years for value ▪ Within 2-6 weeks, hospitals see: ▪ Repaired data lakes ▪ Clear, actionable savings/margin improvement opportunities ▪ Enabled governance programs Why This Matters Now 23 This is not an IT project – it’s a financial transformation , driven by a data trust
- 24. The Results: StrategicSavings Buckets & Value Opportunities Confidential - Property of VSeeIQ Category Potential Impact Real-World Result / Mechanism Price Parity & Tariff Reconciliation 4–10% Normalized SKUs revealed $3.2M in overpayments in one 4-hospital system—caused by tier mismatches and outdated vendor contracts. Duplicate Item Rationalization 3–5% One system reduced 8,300 SKUs to 3,100 by uncovering duplicates with mismatched names. Result: $1.1M saved through stronger contracting and inventory control. The Hidden Inventory Trap 2–6% C-suite can't measure if purchased items were used—because purchasing and utilization data aren’t connected. Nurses (incentivized to stock, not save) over-order to ensure physician readiness. One system found a 38% overstock rate in surgical disposables. Normalization closed the loop, saving $2.4M by shifting from 'just in case' to 'just in time.' Contract Leakage 1–3% Pricing reconciliation surfaced $870K in off-contract spend—often tied to vendor-created SKU variants and unit of measure mismatches. Revenue Recapture (Charge Reconciliation) 2–5% Linking MMIS and EMR usage data to the charge master identified $1.7M in missed billing due to unmapped items or mislabeled supplies. Expiry / Overstock Waste 1–2% Normalized metadata enabled proactive lifecycle tracking and usage-based restocking logic— reducing emergency orders and waste. Clinical Variation Insights 1–4% DRG-level normalization highlighted costly practice variation. Standardizing supplies per procedure cut unnecessary variation and improved quality. Automation / Workflow Gains Qualitative Clean, structured data enabled automation in purchasing, inventory, and analytics—freeing staff from manual work and error-prone tracking.
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