Hospitals overspend on supply chain expenses by $25B — Here's what ASCs can learn

Combined, hospitals could reduce supply chain expenses by about $25.4 billion annually, according to Navigant's 2018 Supply Chain Analysis

Navigant analyzed 2,300 U.S. hospitals and calculated the potential savings if all hospitals could match the performance of hospitals with the highest supply chain budget efficiency.

Here are four takeaways for ASCs:

1. Each hospital could save up to $11 million for year, the study found. That equals the estimated amount needed to build two outpatient surgery centers.

2. Lower supply spending didn't hurt quality. In fact, hospital-acquired condition and value-based purchasing scores were slightly better at facilities with more efficient supply spending.

3. There were equal savings opportunities across the board, regardless of hospital size, location and ownership type.

4. High-performing supply chain departments exhibited three behaviors:

  • Engaging data-driven physicians on standardizing use of physician preference items and medications
  • Encouraging physicians, nurses and other clinicians to collaborate with suppliers on value-based contracting and other efforts
  • Using data to tie costs to patient outcomes and employing staff with the skills to analyze it

More articles on supply chain:
Will Amazon shake up the ASC supply chain? Here's what 4 experts say
4 Ways a Clinical Assessment Drives Value for Your Surgery Center
How ASCs can adapt to a transforming supply chain landscape — 5 experts weigh in

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