Hospital Supply Chain

Solutions to streamline the Supply Chain operations to eliminate redundant costs and improve Cost per Patient Served

As there are more mergers and acquisitions reshaping the IDN and hospital landscape, the executives of the acquiring organizations want to streamline the operations to eliminate redundant costs. Here are some key questions that healthcare executives are seeking answers to:

  • What roles in management need to be evaluated for consolidation in the new organizational structure?
  • What functions need consideration for centralization and what functions need to remain decentralized?
  • What functions within the new organization need consideration for elevated roles including establishing the leadership position at a VP level or above?
  • What functions or sub organizations need to be considered for down-sizing through closing or sale of business units
  • How to establish a new proforma leading to lower overall operating costs?
  • How to evaluate business case for self-contracting and self-distribution?

Many hospitals have an immediate need for evaluation of products used by the clinicians. Typically, value analysis teams do not have active participation from key areas to maximize the benefits. Our consultants have extensive background in working with Value Analysis teams across the hospitals in North America. Here are some key questions that healthcare executives are seeking answers to:

  • How to improve performance of Value Analysis teams?
  • How to improve buy-in from executive team in overall value analysis process?
  • How to measure and track participation and performance of Value Analysis process?
  • How to use predictive analytics and benchmarking tools to obtain active participation from key departments?
  • What are the technology options along with their qualitative and quantitative benefits that could enhance performance of Value Analysis process?

Our team typically uses following set of tools to evaluate and enhance Value Analysis process:

  • Data collection
  • Interviews
  • Analytical tools
  • Benchmarking information from similar organizations

Selection of right distributor and GPO vendor is one of the key cost drivers in supply purchasing process. Our consultants have worked at many hospitals and IDNs across North America to help select the right partner. Here are some key questions our consultants could answer for Healthcare management teams:

  • Are we receiving the best value from our current vendor?
  • Is it more cost efficient to use Just in Time (JIT) supply delivery for patient floor supplies?
  • Is the current vendor the right strategic partner in delivering the long term needs of an organization?
  • How to negotiate a best value solution to help minimize the overall supply cost?
  • Is it necessary to select a new vendor by use of RFI and RFP process?

Our team typically uses following set of tools to conduct vendor selection process:

  • Data collection
  • Interviews
  • Analytical tools
  • RFI/RFP document prep & execution
  • Benchmarking information from similar organizations

Several of our team members have served in interim capacity roles at many hospitals across North America. Here are some examples of roles in which they have served:

  • VP of Supply Chain / Materials Management
  • Director of Supply Chain / Materials Management
  • Manager of Supply Chain / Materials Management
  • Director of Surgical Supplies
  • Manager of Surgical Supplies
  • System Director, Logistics Operations

Many organizations have dependency on GPOs to ensure that they have the most competitive supply pricing. In many instances the GPO pricing is not the most
competitive. This is typically due to dependence on outdated processes to manage contract portfolios and lack of appropriate systems and tools to manage and ensure the
best possible pricing. Similarly on negotiations end, not all organizations have personnel with strong negotiation training, experience and most importantly access to benchmarked pricing information in specialty areas, such as physician preference items.

We are equipped to provide interim personnel to review a client’s contract portfolio and help with organization, negotiation and completion of contract backlog. Our personnel also have significant experience in analyzing the client’s current contracting process and personnel to help develop a contract management system that will allow the organization to maximize its opportunities with selected suppliers. This may include a review of contract management systems that are available for use and their appropriateness for each client’s situation.

Our team members have experience in managing courier operations at healthcare facilities. Here are some key questions our consultants could answer for Healthcare management teams:

  • Is the courier operation performing at their highest productivity levels?
  • How to maximize resource utilization by maximizing number of stops per day per vehicle?
  • How to train employees to understand and implement processes to help improve productivity?
  • Do we have the right equipment mix to meet service levels for our customers
  • Are there some processes relating to courier operations that lead to JCAHO non-compliance?
  • What are alternative technology and automation options (for routing and dispatching) that could help streamline the courier distribution process?
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