Transforming the back office in healthcare
Client Requirement
As part of a significant internal transformation program the client had decided to outsource a range of Finance and Accounting (F&A) and Procurement processes to an incumbent provider. Despite being an experienced procurement function they needed significant up-to-date advice and guidance on commercial deal shaping and contracting for these services, to address previous unsatisfactory experience.
OUR ROLE
We were engaged as outsourcing and procurement advisors, to provide expert advice and market knowledge on F&A and procurement outsourcing. We used our expertise in commercial deal shaping and options, supplier approaches, pricing analysis, development of contract schedules, and the negotiation playbook and approach. Specifically, we:
- Acted as the primary program management, deal shaping advisors, contract schedule developers and negotiation advisors for the procurement team
- Ran a series of workshops to develop the client’s knowledge of commercial deal shaping and protection provisions available
- Worked in collaboration with the consulting partners involved who managed the initial program development and bidding processes, and with the client’s external legal advisors to develop the contract
- Provided insight on suppliers’ commercial approaches, pricing and negotiation tactics
- Created detailed responses to suppliers’ commercial positions, with options for the client team to negotiate
Business Outcome
The deal was concluded successfully with:
- A revised and updated commercial deal structure to improve the linkage between payment and performance
- Robust definitions of scope and service levels
- Enhanced contractual protections through pay for performance, governance and benchmarking provisions
- Significant savings committed by the supplier with a clear roadmap for automation
Completion Date: August 2025
