Health Supply Chain Management Optimization Is Key for Reducing Costs

Supply costs are one of the fastest-growing cost centers for hospitals. Yet 18% track no supply chain metrics at all, according to a recent industry survey. As health supply chain management expenses surpass labor costs for most hospitals, optimization becomes more important than ever. These spiraling expenses tend to hit community-based hospitals hard because many don’t wield enough purchasing power to command preferred pricing. Other hospitals, though larger or part of a health system, face unique health supply chain management challenges and concerns despite their greater purchasing power.

Holding the...

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With guidance from CHC Supply Trust experts, community hospitals can achieve the same preferred pricing typically reserved for their larger counterparts.

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Case Study

Small Hospital Realizes Big Healthcare Supply Chain Savings: Community Hospital, McCook, NE

The Situation

Community Hospital in McCook, Nebraska, previously bought its supplies and services from a nationwide hospital network. As part of the network’s supply contracting company and group purchasing organization (GPO), Community Hospital was subject to volume-based tier pricing. Under that healthcare supply chain business model, the small rural hospital paid approximately 35 percent more than larger hospitals for orthopedic implants. Higher prices were just one disadvantage of belonging to a healthcare supply chain network in which smaller hospitals typically are not shown the same attention as their larger...

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CHC Supply Trust shows hospitals their potential savings up front, and if those numbers aren’t compelling enough, what I would add based on our experience is this: Get started now. CHC Supply Trust does all the heavy lifting and all the hand-holding you may need. They are not just a service provider but a true partner.
~Shamb Purohit, CFO
Colquitt Regional Medical Center, Moultrie, Georgia