We help hospital systems and other health care providers navigate an extended set of outsourcing and cost management initiatives, often in partnership with Innovative Health Strategies, LLC (IHS), a wholly-owned subsidiary of Drinker Biddle.

Through the combination of our lawyers and IHS consultants, we offer an integrated group of veteran professionals who have developed an effective and efficient approach to sourcing purchased services, purchasing capital equipment and other items sourced by hospitals directly, outsourcing non-core functions and outsourcing dialysis and other clinical services. Our knowledge of price metrics, performance standards, terms of service and maintenance, and other vital business and legal components, provides a significant advantage for our clients.

Outsourcing and Cost Management

Purchased Service Outsourcing

We have negotiated dozens of outsourcing and direct purchase contracts for hospitals.  The legal protections and performance commitments are designed to protect our clients throughout the relationship with the other party.

Our purchased service outsourcing projects include:

  • Facility management function of a five-hospital system
  • HIM Department of a community hospital
  • Patient accounts department of a community hospital
  • IT department of a major children’s hospital, in conjunction with an innovative research arrangement and software licensing

We have also sourced, negotiated and documented:

  • The acquisition of two 156 slice CTs from Siemens on behalf of a three-hospital system
  • More than fifteen (15) other IT outsourcing arrangements since 2002.

Projects with The Advisory Board Company

We have worked closely with The Advisory Board Company since 2012 on close to 50 separate purchased services outsourcing arrangements, including for:

  • Supply chain and group purchasing
  • Food and Nutrition Services
  • Environmental and Laundry Services
  • Patient Transport and Call Center Services
  • Transcription, Coding, Release of Information and HIM Scanning Services
  • Managed Print and Copy Center Services
  • Diagnostic Imaging and Biomedical maintenance and repair services

GPO Work

We use a sophisticated, informed process for refreshing group purchasing organization (GPO) participation agreements for our hospital clients.  Over the past 20 years we have sourced, negotiated and documented  more than 100 long-term GPO participation arrangements. We also advise on supply chain and strategic sourcing initiatives and have represented clients in a diverse group of supply and distribution service agreements with vendors.  We have created and counseled both regional hospital GPOs and specialty GPOs (e.g., institutional pharmacy GPO and blood center GPO).

  • Worked with Sanford Health, a multistate regional health system, to evaluate its supply chain strategy and group purchasing arrangements. We helped Sanford negotiate and document the terms and conditions of a new group purchasing model in line with its goals for cost reduction, on-site resources, technology, direct and regional contracting, and vendor (risk-sharing) alignment.

Outsourcing of Dialysis and Other Clinical Programs

We assist clients with outsourcing of clinical programs, including dialysis, to national specialty care companies that can provide the clinical service more efficiently while maintaining  high quality.


Our strength lies in our extensive experience with the key players in the dialysis industry.  Our familiarity with the documentation and process needed to carry out strategic transactions expedites the transaction and enables clients to achieve the best possible deal terms.  Our negotiating teams involve attorneys  and consultants who have worked in the dialysis industry and provide valuable insight that is hard to obtain elsewhere.

Our experience advising health systems and physician groups with dialysis-related work includes :

  • Outright sale of outpatient dialysis facilities or home dialysis programs
  • Sale of assets of such facilities or programs to joint ventures in which the clients retain a minority interest
  • Establishment of joint ventures with large dialysis providers to (a) develop new outpatient facilities or home programs or (b) acquire a minority interest in an existing facility or in programs owned by the dialysis providers
  • Outsourcing of hospital acute dialysis services to large dialysis providers
  • Negotiation of medical director arrangements between physician groups and large dialysis providers.

Other Clinical Programs

We have also been able to translate years of experience in dialysis arrangements into the outsourcing of other clinical programs. This includes assisting clients with services related to vascular access, imaging, wound care, radiation therapy and diagnostic imaging.

Related Capabilities