Health Care Specialists Turn To Software To Reduce Supply Chain Costs
The health care industry's transition to value-based treatment delivery methods has forced many hospitals throughout the United States to reduce as many expenses as possible. As opposed to cutting staff, administrators have reassessed their distribution techniques to determine what practices and items are contributing to exorbitant spending.
Talking Logistics radio show host Adrian Gonzalez noted on his LinkedIn page that particular software programs geared toward optimizing supply chain efficiency enable shippers to view all housed and in-transit products. Through such systems, executives can learn which frivolous materials are driving up costs.
With this technology on hand, medical centers have been able to indirectly reduce the expense of health care. According to HealthLeaders Media, Boston-based Beth Israel Deaconess Medical Center cut nearly $25 million from its distribution expenses over a three year period.
Steve Cashton, director of purchase and contracting for the organization, claimed that BIDMC assembled six analysis teams consisting of professionals specializing in support services, medical surgery, pharmacy, clinical administration and intervention procedures to examine the worth of routinely procured items. The value of the materials was factored into deciding which products could be eliminated from the hospital's inventory fulfillment requirements.