How does supply chain management impact hospital performance in value-based care models?
Effective supply chain management can reduce supply costs by 10-15%, improve operating room (OR) utilization by up to 20%, and decrease waste. This supports hospitals in meeting their quality benchmarks and optimizing financial performance tied to value-based programs.
What strategies can hospitals use to reduce supply costs without compromising quality?
Hospitals can leverage data analytics to identify high-cost items, standardize surgeon preference items, and negotiate volume discounts. The result may create results such as a savings for supplies of 10-20%, a reduction of unused supplies by up to 30%, and optimized inventory levels and space across the facility or system.
How can technology improve supply chain efficiency in the perioperative setting?
Utilizing inventory tracking and automation tools can increase inventory turnover from 2-3 times annually to 10-12 times. This is linked to a decrease in expired supplies and real-time charge capture, improving financial accuracy and reducing material waste.
Why is it important to standardize supply selection and preference cards in the OR?
Standardization can reduce supply variability by up to 30%, decrease on-hand inventory by 15-20%, and lower waste rates. This enables staff to become more familiar with commonly used devices and significantly cut supply costs.
How does an optimized supply chain support hospital readiness for bundled payments and payment reform?
A streamlined supply chain may reduce per-case supply expenses by up to 10-15%, minimizing case delays due to stockouts. Better performance under bundled payment models and lower penalties can also support stronger hospitals margins.
What role do supply chain key performance indicators (KPIs) play in sustaining improvements in perioperative operations?
Monitoring KPIs like a 2-3-fold increase in inventory turns, less than 10% stockout rates, or a 1-2% expiration rate provides actionable insights for continuous improvement efforts when a hospital or system is focused on cost savings without compromising on high-quality care.
