Healthcare leaders agree about the value of supply chain management

Approximately half of healthcare executives believe that supply chain management can increase margins by at least 1-3%, according to a January 2019 Syft survey of supply chain leaders. To put this in perspective, a hospital with $900 million in revenues and a 1% margin of $9 million could gain between $9 million and $27 million by improving its supply chain performance.

As far as decision-making about supply chain management planning, supply chain leaders had the most influence about specific solutions or strategies, while CFOs had a significant impact on supply chain management solution budgets.

Forty-one percent of survey respondents were employed by hospitals with less than 250 beds, while 39% worked for hospitals with 250 to 499 beds.

In addition to overall cost savings, as healthcare organizations face mounting pressure from programs like the Bundled Payment for Care Initiative-Advanced (BPCI-A) and value-based payment models, managing supplies efficiently becomes more critical.