Growing hospital systems stretch supply chains Last Updated: February 4, 2016
Filed under:
Print Friendly, PDF & Email

Modern Healthcare: There’s been significant growth in hospital system spending on supplies from medical-surgical distributors for their non-acute-care facilities since 2014, said David Hargraves, vice president of strategic sourcing for Charlotte, N.C.-based Premier. Alternate sites were up 165% in 2015 and physician practices were up 536%. However, those orders still account for a fraction of supply spend. Acute-care spending remains 12 to 13 times higher than the rest of the continuum. Still, technology is allowing health systems to see they can lower costs at their ambulatory settings by taking pricing out of local hands. “In the past if you were independent … you made your product selection and you counted on (the distributor) to make sure you had good pricing,” Hargraves said. Now, purchasing “is done at the system level at a lower price point and the distributor is being paid for services they provide.”

Full story