The procurement process and related business practices account for a large portion of the health care industry's overhead expenses.
According to HIT Consultant, the market's distribution costs are rising at an incredibly fast pace, motivating hospitals and other such organizations to eliminate any extraneous practices. In order to do so, medical entities are leveraging a combination of strategic sourcing and business intelligence.
Below are listed a number of methods companies are employing to implement leaner supply management protocols.
Group purchasing organizations enable hospitals, clinics and other such businesses to remove any ambiguous articles in a materials acquisition contract. HIT Consultant maintained companies can save anywhere from 1-3 percent by eliminating unnecessary overpayments. In addition, smart collaboration with other hospitals allows them to procure quality products at a markdown.
Having multiple departments order disparate goods often induces frivolous costs that may go overlooked. By consolidating procurement under the responsibility of one team, hidden expenses can be identified and eliminated. Furthermore, a greater level of control and visibility over distribution is achieved through this protocol.
Acquiring quality goods also involves thorough analysis of materials. Healthcare Finance News asserted the importance of scrutinizing data applicable to specific instruments. For example, comparing the average maintenance costs associated with particular bedside patient monitors will help budget administrators decide which brand is worth investing in.
Integrating data collection and management with spend analysis endeavors ensures no surprises arise when a contract is being formulated. The best way to eliminate mistakes is to collect relevant information and add a factor representing an action (such as how often a certain instrument may be used in a given day). This kind of analysis will ascertain whether procuring specific goods is a positive investment.
Just because a hospital has been sourcing scalpels from the same manufacturer for over 25 years, doesn't mean there aren't more profitable relationships on the market. Take data analysis outside of the organization and use it to deduce the value in conducting business with other companies. Network with hospitals that have contracted with such enterprises to gain insight into their practices.
Surveying manufacturers, pharmaceutical companies and other organizations from a distance isn't a good practice to employ. Hire a procurement services entity to assess a potential trading partner's capabilities and then send in-house professionals to get a sense of what a finalized contract would look like.