Through supply chain efficiency, hospital attains cost savings

on Monday, December 13, 2010

Through supply chain efficiency, hospital attains cost savings As the health care industry in the U.S. faces sweeping changes over the coming years, many hospitals are focusing on increasing their supply chain efficiency as a means of battling rising costs. Recently, a hospital in New York succeeded in doing just that.

In Valhalla, New York, Westchester Medical Center spends $125 million annually on medical and surgical supplies, but because of its increasing reliance on outside suppliers, the hospital was unable to accurately monitor spending trends, determine what products to purchase and establish how efficient its business operations were.

To correct those errors, the hospital partnered with MedAssets in July of 2009 to increase its supply chain efficiency and grow its revenue. Since the partnership, WMC has greatly cut its costs as MedAssets scrupulously monitored the hospital's supply chain, delivered actionable data and used advanced data analytics that enabled the hospital to achieve both short- and long-term cost savings.

Roger Weems, senior vice president of performance management at WMC, affirmed that before their partnership, the hospital had "no knowledge about the supply contracts that were in place," but that MedAssets allowed WMC to "be more strategic in our approach to supply chain management and has resulted in financial improvement." The hospital intends to continue with its supply chain management practices and expects even further savings in the future.

1 comments:

Anonymous said...

A group purchasing organization such as MedAssets, mentioned the article, can provide savings to a healthcare organization. In many cases, however, a procurement service provider can improve supply chain efficiency much further, even working within that group purchasing organization framework.

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