The Ambulatory Surgical Center supply chain has been transformed in just a few years. The trends that have shaped your decision-making in the past look completely different today.
For ASC leaders, this means that the simple choice of staying updated with the downstream impact of global supply chain changes is powerful—one that can help you make smart strategic adjustments to get ahead of shortages and other supply chain challenges. By exploring the trends below, you'll construct a high-level understanding of the changes and current events that shape an increasingly interconnected and complex global healthcare supply chain.
Reprocessing does more than reduce costs
Unpredictability in the global supply chain means that disruption has become the norm. One result is that reprocessing comes with a double benefit—reducing costs and supporting sustainability.
Single-use device reprocessing, an FDA-regulated approach to single-use devices, has proven its value in reducing waste and costs while protecting patient safety. This option allows you to continue to reduce costs without chipping away at your resilience. At the same time, it supports a Prepare-Respond-Recover approach to your supply chain.
Prepare
Since the production of reprocessed devices is closer to home, you'll reduce your exposure to supply chain risks like war, pandemics and other knots in the international supply chain. Additionally, your reprocessor can become a secondary or even primary source in addition to your original manufacturer, delaying or even eliminating the risk of disruptions.
Respond
A relationship with a reliable reprocessor can protect you during back orders, recalls and other product unavailability issues by acting as a stand-in for new products. This is because reprocessed product functionally is equivalent to the devices they're replacing
Recover
Reprocessing contracts allow ASCs to recover fully from supply chain issues without disrupting operations since replacement products are accessible almost immediately. They can also help you honor clinician preferences since you'll have the option of using the same devices even when originals are on backorder or experiencing other production issues.
Supply chain issues become infection control challenges
Global supply chain disruption might be more closely connected to patient outcomes than originally understood. A 2022 case study in the Journal of Pediatric Nursing covered a staff nurse's experience in a pediatrics ICU, two years into the pandemic, examining the effects of global supply chain failures on patients and healthcare workers.
Central line bloodstream infections (CLABSIs) can cost patients their health and even lives while driving up the cost of care. While standardized central line insertion and care bundles have been proven to reduce CLABSI incidence, they're heavily dependent on the availability of the necessary supplies and materials.
As global supply chains are increasingly stressed, ASC leaders should keep an eye on not only pediatric CLABSIs, but also on the relationship between infection control and how it is shaped by the availability of materials and supplies that might rely on global supply chain health. The study suggests solutions including analytics and increased transparency.
High-risk supplies continue to shift
As threats to the global supply chain continue to change, so will the shortages and disruptions that cause you the biggest challenges. It will be worth keeping a running watch list of the supplies that have been the hardest to keep stocked and your most successful strategies in mitigating impact.
Additionally, keep an eye on the FDA device shortage list, which, as of October 2022, includes:
- Tube tracheostomy and tube cuffs
- Specialty magnetic resonance coils
- Breast biopsy/localization trays
- Surgical needle guides
- One brand of gloves and an anesthesia system that have also been discontinued
Recovery plans become a long-term necessity
Healthcare supply chain disruptions are part of a “new normal" that will require a different perspective on your supply chain strategy—especially in terms of recovery. It's worth looking back to examine how well your organization has recovered from past disruptions, seeking opportunities to improve and standardize your response.
Many organizations, though, have struggled to recover well from disruptions. A Capgemini survey addressed supply chain resilience in a world changed by COVID. It examined the extent to which organizations had to question established practices, assessing their readiness to withstand future disruptions and looking for opportunities to future-proof supply chains. It found that a full 37% of organizations in the life sciences (pharmaceuticals, biotechnology and healthcare equipment) space took over three months to recover from their disruptions.
Looking forward, the report suggests a few key action areas to future-proof supply chains.
- Establishing a supply chain resilience strategy—measuring your current resilience, accounting for costs and identifying areas where resilience will be most critical
- Creating the capabilities you'll need to get ahead of disruptions—doing this within the systems and processes that support end-to-end supply chain visibility, monitoring more risk factors across the supply chain
- Building in the ability to resist disruptions—Diversifying your supplier base
- Developing capabilities you'll need to recover from disruptions as rapidly as possible (including building strong relationships with ecosystem collaborators like Cardinal Health)
Redundancy, smart tech and a holistic perspective are critical
Though ASCs will need to create increasingly specific approaches to supply chain management, a few steps will be helpful regardless of your organizational profile.
Redundancy will be essential
Redundancy is a simple way to increase supply chain resilience. Consider looking for opportunities to apply tactics including carrying extra inventory and working with backup suppliers.
Tech will be required
The technology you were using before the COVID-19 pandemic might align well with your future supply chain goals, but now is the time to refresh your entire approach to a supply chain strategy. Look into solutions like advanced analytics through Wavemark and data that provides transparency and connection with collaborators who can help you share risk.
A holistic perspective is the future
Your supply chain is inextricably linked to stakeholders across the globe—which means alignment with your collaborators is more essential than ever. By looking at your supply chain from the outside in you can better understand your risk, identify opportunities to reduce threats, increase opportunities and best support your clinicians and patients.
As you prepare your supply chain for the future, know that Cardinal Health can be a powerful asset in expanding your supply chain capabilities beyond what you thought was possible. Visit our Supply Chain Center to explore the insights and services that will keep you ahead of an increasingly complex and challenging global supply chain.