Healthcare Non-Labor Cost Reduction

Healthcare Non-Labor Cost Reduction

Healthcare Supply Chain Expense Reduction Services

Get more information about our services, submit a request for proposal, or get in touch with a BKD Trusted Advisor™.

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.

How can we help you?

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We have 40 offices in 18 states, with BKD Trusted Advisors™ who offer solutions for clients across the country.

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