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Invest in Improving Your Supply Chain Management to Capture Up $12M in Annual Savings Per Hospital

With operating margins continue to shrink, healthcare providers need to put a focus on reducing spend. Behind labor costs, supply costs are the second largest spend. Spending effectively puts the money invested to work without compromising the quality of care.

To achieve this, investment should be made into strengthening supply chain management. Increased communication is often one of the best ways. Training more on supply chain, making data driven decisions, engaging caregivers and IT departments early in the process are other effective techniques. Using utilization data and a technology plan is another important step.

Creating an effective technology plan, could mean right-sizing the operating fleet to what is optimal for your patient volumes. Even though you’ve already have a system doesn’t mean that you should keep it, you can’t talk about equipment costs without talking about the total cost of ownership (TCO). The equipment is never just a one-time fee, there’s always an ongoing costs to maintain the device, rather it be direct or indirect costs. There’s also potential for improved workflow and shared services to allowing you to get the most out of your devices. Thorough analysis could potentially tie costs to patient outcomes.

As devices and solutions are becoming more integrated into the IT landscape, there’s becoming increased risks across the board from IT security to delayed installations to ineffective management, making it imperative to have a strong supply management team that partners directly with IT.

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