Hospitals can save billions through supply chain optimization, data utilization
A recent report released by Navigant Consulting found hospitals could save $25.4 billion by optimizing supply chain operations and using data to inform decision-making. The report, which analyzed and compared 2,300 hospitals’ supply cost per adjusted patient day, produced several key findings about top-performing hospitals:
- They encouraged physicians to use data to both determine and standardize physician-preference items and medications that result in the same outcomes at a lower cost
- They hired staff to help gather and analyze data that link costs to patient outcomes to determine further efficiencies
- They encouraged healthcare providers to collaborate with members of IT, supply chain and finance departments and to engage with suppliers to create value-based contracts
The report emphasized the importance of streamlining the supply chain management process and standardizing vendor contracts, the bidding process and item sourcing. The report found that those hospitals that standardized such elements also had better Medicare condition rates and value-based purchasing scores.
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