Reimbursement and the increasing cost of supplies are the greatest issues facing health systems, according to a national survey of hospital executives commissioned by Dublin, Ohio-based Cardinal Health.
The supply chain and the products it moves are the second largest expense for healthcare providers, reports Cardinal Health. The current approach to supply chain management at hospitals involves intensive staffing to handle multiple, often redundant systems that lack data sharing and the transparency needed to prevent waste.
"We believe hospital decision makers understand that the supply chain can be a strategic asset if the industry collaborates to improve its effectiveness and unlock data within it," said Cardinal Health medical services and solutions senior vice president and general manager, Tony Vahedian.
The survey, conducted by healthcare data-provider SERMO Intelligence in New York City, queried 150 hospital executives and decision makers on supply chain issues.
Below are seven findings from the survey:
1. Two-thirds of respondents strongly agreed that improving the effectiveness of their supply chain would reduce overall costs, increase revenue and improve quality of care.
2. One-third of respondents rate the management of their organization's supply chain as very effective.
3. Of respondents, 85 percent said their organization is currently working to implement new ways of reducing supply chain waste and related costs.
4. At an aggregated level, there is an estimated $5 billion of annual waste in high-value medical devices.
5. Fifteen percent of hospital decision makers strongly agreed they have a sufficiently broad view of their supply chain.
6. Primary obstacles to improving supply chain management include the lack of end-to-end view of supply chains from manufacturer to patient, low awareness of current technology and a discrepancy among supply chain leaders and system executives concerning supply chain strategy.
7. Behind reimbursement and the increasing cost of supplies, financial issues, drug shortages and workflow efficiency were the next greatest concerns for health system management.