Supply Chain Management

When healthcare organizations think about supply chain management, it goes way beyond comparing the price of needles, medical devices, and prescription drugs. Using this proven cost cutting principle from other industries within the healthcare industry can bring effective and beneficial change. Supply chain management in healthcare is about reducing costs, but it is also about improving efficiency, and using technology to determine whether the purchases made are driving the desired outcomes of improved results. Improving supply chain management can boost revenue, lower costs, and improve quality of care.

One area that drives costs higher for healthcare organizations is provider preference. Several providers may have a variety of preferences which eliminates savings from bulk purchases. Standardizing provider preferences or reducing item variation can generate substantial savings. Even more important than generating savings when purchasing supplies, however, is ensuring that the items purchased contribute to better patient outcomes or care quality. Aligning products purchased with clinical outcomes will take constant physician engagement. Technology can generate data and analyze that data to measure those outcomes. Organizations must implement health IT systems to better manage supply chain costs using value-based reimbursement models.

Organizations can use technology to integrate management processes of key business functions. Radio Frequency Identification (RFID) technology and computerized provider order entry (CPOE) systems are both effective in making healthcare supply chain management more efficient. The key to reducing costs by decreasing variations is through data-sharing, and that takes implementing IT solutions. These technologies can also track supplies throughout their consumption activity to eliminate waste. With the shift to value-based reimbursement in the healthcare industry, improving the supply chain management process through implementation of technology effectively positions organizations to make that transition.

Recent regulations regarding price transparency are creating another shift in the healthcare industry. Healthcare organizations need to improve their customer service to include clear communication regarding their healthcare and the costs and benefits of the services they receive. Patients have greater access to costs for healthcare than ever before, so providers must communicate with their patients regarding the value and benefits of their services over someone who may be charging less. The supply purchases must therefore be linked to customer satisfaction and ensure positive health outcomes to demonstrate the effectiveness and value of the services provided.

Genesis Medical Management, your healthcare solutions experts, encourages its customers to implement the technology needed to generate and analyze data to improve supply chain management. Using that data, providers can attest to their customers that they are receiving the highest quality healthcare at the best value. Providers will also reduce costs and boost revenue by implementing this healthcare innovation. Contact Genesis Medical Management today to assist your organization with personalized healthcare solutions.