Effective supply chain management is a key component of an ASC's clinical, operational and financial success.
Mandie Shipp, BSN, RN, senior consultant of the clinical operations ambulatory care segment at Cardinal Health, discusses the biggest pain points for ASCs and best practices to drive improvement in supply chain management.
Ms. Shipp is a featured speaker at the Becker's 17th Annual Future of Spine + The Spine, Orthopedic and Pain Management-Driven ASC Conference, June 13-15 in Chicago. Click here to learn more and register. For more information about exhibitor and sponsor opportunities, contact Maura Jodoin at mjodoin@beckershealthcare.com.
Question: Where do you see the biggest pain points for ASCs related to supply chain?
Mandie Shipp: One of the biggest pain points I see in an ASC's supply chain is effectively managing supply costs. Traditionally the main objective for a materials manager has been to purchase the highest quality equipment and products at the lowest possible cost for the organization. Many materials managers are clinicians who don't have a background in supply chain, and typically centers don't have a dedicated person supervising spending activity. Because of this, supply spend data is often overlooked. It is very difficult to effectively manage supply costs without the pertinent information needed to consistently make informed purchasing decisions. I recommend regularly reviewing purchase history data and analyzing costs relative to procedures, volumes, revenue and budget so you have benchmarks to work from.
Q: What internal and external factors are driving change for ASCs in this space?
MS: I believe physician investor involvement in financial operations is driving increased cost efficiency in ASCs internally. Another internal factor is the addition or expansion of specialties offered by centers, which requires additional time and supplies, while increasing cost. Externally, the growing number of ASCs partnering with hospitals to decrease costs are creating a more competitive market space. Also, as benchmarking data is becoming more readily available, ASCs can compare operational costs and performance data to improve their processes and decrease costs.
Q: How are the smartest centers overcoming these challenges?
MS: To combat these challenges, I've seen centers employ a full-time materials supervisor with experience in supply chain and a healthcare background, to manage the supply chain through data analysis and cost evaluation. They also look at benchmarking data to improve their ASC's performance and spend with centers comparable to their own to identify development opportunities and implement change.
Q: What are they doing to set themselves up for success in the future?
MS: Forward-looking centers I've worked with are choosing to contract with one primary distributor that provides data on purchase history and overall savings opportunities, consolidating their data sources and streamlining their data analysis processes. This also allows them to take advantage of the entire scope of benefits offered by the company, which often includes significant reimbursements or rebates on total spend. I've also seen ASCs partnering with a larger entity such as an affiliated hospital to negotiate lower distributor pricing on supplies.