Healthcare procurement has weathered a perfect storm of challenges in recent years. From supply chain disruptions and cybersecurity threats to escalating costs, procurement leaders have had to demonstrate remarkable resilience.
“We are facing challenges due to disruptions in the global supply chain, leading to delays in the delivery of essential medical supplies and equipment,” says one hospital supply chain executive in a recent Healthcare Procurement State of the Market survey from Staples Business Advantage for Healthcare. “These disruptions can impact patient care and operational efficiency.”
However, a glimmer of hope shines through the complexity: AI. The new research shows, nearly three-quarters of senior healthcare executives have adopted AI in their procurement functions, with an overwhelming majority (94%) reporting positive outcomes.
As the industry navigates this AI-driven transformation, three pillars will underpin success: quality, efficiency, and innovation. Innovation, particularly in the form of AI-powered analytics and automation, will be crucial for optimizing procurement processes, and bolstering supply chain resiliency. However, human oversight remains essential to mitigating unforeseen challenges, adapting to rapidly evolving market conditions, and preserving the nuanced understanding of product requirements that only human expertise can provide.
Securing high-quality partnerships and products is paramount. An overwhelming 83% of respondents say it’s a “critical” or “high” priority to find specific products that meet their organization’s needs, equaling the importance of reducing the overall cost of supplies.
However, defining quality is complex. It’s more than just product specifications; it encompasses safety, efficacy, and patient satisfaction. One leader summed up their top pain point as “trying to find affordable, high-quality options that please everyone.”
The stakes are high. Quality has a direct impact on employee satisfaction, financial performance, and patient experience. A focus on quality can enhance talent retention and boost employee morale. One respondent emphasized the urgent need to boost morale among both staff and patients, citing "super high turnover" rates as a primary concern.
Balancing quality and cost is a delicate art. “The top challenges I face are minimizing costs while still receiving quality products to use. It is a delicate balance, and inflation recently has been a huge factor,” shares a senior executive from an ambulatory center.
While often seen as opposing forces, quality and cost are intrinsically linked. Organizations must find ways to deliver high-quality products and services while maintaining budgetary constraints. This involves a holistic approach, including factors like product performance, longevity, and environmental impact.
Partner selection is critical. Leaders seek suppliers who are reliable, offer diverse product portfolios, and provide excellent after-sales support. Quality assurance is another key component. Given the breadth of products healthcare supply chain leaders are responsible for, everything from general breakroom supplies to specialized offerings like EVS cleaning solutions, “choosing safe, and reliable products, as well as trustworthy suppliers, is essential,” one leader says.
The payoff for prioritizing quality is substantial. By investing in higher-quality products and suppliers, organizations can reduce waste, improve patient outcomes, and enhance their reputation. As Jack Koczela, Director of Analytics and Transformation at Froedtert Health, notes, “[By] controlling rogue spending … we know that we’re increasing quality. We know that we’re increasing the overall experience of procurement, be that for the clinicians who are using it, or for our staff who experience a more automated purchasing process…”
Navigating the complexities of healthcare procurement requires a steadfast commitment to quality. By prioritizing quality partnerships, products, and processes, healthcare organizations can mitigate risks, enhance employee and patient experience, and drive long-term success. While the path is challenging, the rewards are substantial, making quality an indispensable pillar in the evolving healthcare purchasing landscape. Read full report.