Sanford Health is projected to save over $1.4 million within their perioperative supply chain. North Mississippi Health Services achieved annual savings of $8 million through a self-distribution management system.
Parkview Health successfully converted $17 million in annual expenses into revenue. With the potential for seven- and eight-figure ROIs, it's evident why CFOs are increasingly focused on addressing performance gaps in the healthcare supply chain.
While supply chain is critical to patient care delivery, it’s not immune to financial scrutiny. On the contrary, as a healthcare supply chain leader, your organization’s CFO has likely tasked you with tightening up operations to save even more money.
You inherently know your supply chain has areas of leakage, from missing inventory and items expiring on shelves to usage capture gaps at the point of use (POU). But it’s no simple feat to identify these issues and come up with potential savings estimates for addressing them. In many cases, building the business case for supply chain optimization comes down to lack of visibility.
As highlighted earlier, several healthcare organizations have reported substantial cost savings within their supply chains. But when it comes to your own savings journey, where do you start?
Start here with Tecsys’ Healthcare Supply Chain ROI Savings Calculator. Built on over four decades of experience in optimizing supply chains, including hospital ORs and renowned U.S. hospitals, this healthcare ROI calculator provides immediate financial insights with simple inputs.
How does it work?
With this tool, you can estimate real cost saving opportunities by entering the following information:
- Annual Medical/Surgical Supply Expenditures: your healthcare organization’s total annual spending on medical/surgical supplies, including dressing, casts, hypodermic needles, syringes, specialty items or any other medically necessary supplies.
- CSC Integration Assessment: rate the level of integration and automation of your current consolidated service center (CSC) set up from 1 to 3.
- POU Integration Assessment: rate your current state of point of use (POU) technology integration and automation from 1 to 3.
The healthcare ROI calculator then evaluates your potential return on investment using Tecsys’ solutions.
How can you use this information?
This healthcare ROI calculator provides a very high-level view of the supply chain savings you can generate. Think of it as the first step in your journey.
The next step is to take a deep dive and identify the specific areas in your organization where supply chain optimization can have the greatest financial impact. Are you losing the most money from missing inventory, expired inventory or failure to document products used in patient care?
With decades of healthcare supply chain experience and having performed hundreds of technology implementations, Tecsys’ experts are here to support your journey by helping to:
- Pinpoint your organization’s specific areas of leakage
- Prioritize opportunities for improvement based on financial impact
- Determine which technology solutions are best suited to your supply chain
- Understand potential gains from supply chain optimization
- Build a business case to justify investments
How can you measure the impact?
More than ever, supply chain leaders need to scrutinize their investments to ensure they are good stewards of their healthcare organization’s limited resources. Therefore, calculating ROI for supply chain optimization isn’t a one-time project but rather an ongoing process.
Following implementation of Tecsys supply chain management (SCM) solutions, we continue to provide business intelligence analytics through which you can track your performance and manage the effectiveness of the implementation. Areas for ROI measurement include:
- Inventory reduction and carrying cost
- Expiration and loss
- Case costing
- Usage capture
Ready to take the next step?
Try Tecsys’ Healthcare Supply Chain ROI Savings Calculator to find savings opportunities and identify specific areas for impactful improvement within your organization.