Where the Real Opportunity Is

Most healthcare organizations focus on controlling PPI by limiting choice or forcing standardization.

But the biggest opportunity is often overlooked:

If PPI is driving off-contract spend, then it’s also one of the easiest areas to reduce costs—without changing a single product.

Instead of replacing what your surgeons use, the smarter approach is to source those exact same, in-date OEM productsmore strategically.

Same products. No disruption. Lower cost.

---

Why PPI Is So Difficult to Control

Physician Preference Items are deeply tied to clinical performance.

Surgeons rely on specific tools because of familiarity, muscle memory, and trust built over thousands of procedures. Whether it’s an energy device, stapler, or implant, even small differences can impact efficiency and confidence in the OR.

From a supply chain perspective, however, these preferences often create costly outliers.

When a facility is contracted with one vendor but a surgeon prefers another, the organization loses access to volume-based pricing and ends up paying a premium for off-contract purchases.

That’s where cost and clinical preference collide.

1. Move from “No” to “Know”

Instead of denying requests for off-contract items, involve physicians earlier in the process.

Engage surgeons with data. When they understand the financial impact and are included in decision-making, they’re far more open to evaluating alternatives or supporting cost-saving initiatives.

A multidisciplinary Value Analysis Committee (VAC) can help align clinical and financial priorities without creating friction.

2. Use Data to Drive Better Decisions

3. Rethink How You Source PPI

Reducing PPI costs doesn’t mean switching to lower-quality products.

In many cases, surgeons prefer top-tier brands—and those preferences aren’t going away.

The opportunity is in how those products are sourced.

At The Hospital Hub, we focus specifically on this gap—helping facilities source the exact same, in-date OEM products at significantly lower pricing.

Instead of relying solely on traditional contract channels, smarter sourcing allows you to maintain surgeon preference while reducing per-case costs.

4. Eliminate Hidden Costs from Surplus and Waste

A large portion of PPI spend is wasted before it’s ever used.

When preferences shift or contracts change, inventory often sits on the shelf until it expires—tying up valuable capital.

Recovering that value is a major opportunity.

By implementing a surplus buyback strategy, facilities can convert unused inventory into working capital instead of letting it turn into waste.

That recovered value can then be reinvested into high-demand PPI items.

5. Increase Transparency and Accountability

Providing physicians with visibility into their cost-per-case compared to peers encourages smarter decision-making without mandates.

Even simple scorecards can create meaningful change.

When surgeons see the impact of their choices—and know they’re aligned with broader organizational goals—they’re more likely to adjust.

The Bottom Line

Controlling PPI costs isn’t about limiting choice.

It’s about making smarter decisions around how those choices are supported.

By combining data transparency, physician engagement, and more strategic sourcing, hospitals and surgery centers can significantly reduce costs—without disrupting clinical workflows.

Because the fastest way to reduce PPI spend isn’t to change what surgeons use.
It’s to stop overpaying for it.