Sustainable, Strategic Strategies for Your Non-Labor Expenses
Rising healthcare costs are a growing burden on many providers, making improved supply chain management an essential area for cost reduction. After labor, supplies are a healthcare organization’s second-largest expense.
The supply chain for most healthcare organizations is vast, complex, and difficult to manage. However, with the right strategy and skills, your supply chain can become a reliable value generator. Investment in a focused supply cost reduction initiative has helped our clients increase margins by 1 to 3 percent of net patient service revenue from initiatives across the organization, including:
- Medical/surgical supplies
- Medical devices
- Pharmaceuticals
- Food and nutrition
- Reagents and blood
- Employee benefits
- Utilities
- Biomedical
- Technology
- Purchased services
There are many ways your institution can enhance supply chain performance in these areas, including:
- Fact-based strategic sourcing
- Data-driven value analysis
- Reduced clinical variability
- Formulary management
- P2P policy and controls upgrades
- Product profitability analysis
- Contract compliance
- Key performance metrics and detailed utilization reporting for key expense drivers
BKD Trusted Advisors™ can help your organization:
- Assess supply chain performance and purchasing cycle controls
- Benchmark purchase price and category spend to our proprietary IntelliSource® database
- Analyze procurement patterns to identify clinical variance, off-contract spend, utilization inefficiencies, and new technologies and equipment opportunities
- Evaluate preference/procedural cards
- Develop a value analysis program
- Assess physical supply chain, flow, and inventory management
- Develop key performance indicators to evaluate savings and supply chain performance
Successful healthcare organizations know the advantage of a high-performing supply chain and the value of continued investment. Our deep experience—paired with our commitment to providing Unmatched Client Service®—can help you implement sustainable improvements, increase savings, and position your organization for success.
Contact us to see how we can help.
