Global Healthcare Exchange has provided a list of 10 strategies for hospitals and other healthcare organizations on cutting medical-surgical supply spending, according to a GHX release.
1. Conduct purchasing electronically, where possible, saving an average of $12-$27 per order.
2. Automate the procurement process from the point of contracting to the point of payment, to streamline operations and boost efficiencies.
3. Centralize purchasing across the organization to enable more visibility and control over supply spending.
4. Develop a master data management strategy to ensure critical information is up-to-date and to provide "one source of truth."
5. Understand the total cost of all factors in the supply chain, including procurement, logistics, inventory management, charge capture and reimbursement.
6. Scrutinize total cost and efficacy of products to determine the role they play in cost and quality of care.
7. Bring more non-file and off-contract spend under contract, especially high-cost physician preference items.
8. Validate billed prices by consulting contracted rates, saving an estimated 1-3 percent in avoided overpayments.
9. Establish partnerships between supply chain and clinical and financial departments to achieve mutual objectives.
10. Discuss with trading partners what happens to products once they arrive, asking for ways to become a lower-cost customer.
Read the GHX release on ways to reduce supply spend.
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