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Cardinal Health survey reveals benefits of making supply chain more efficient

A survey of hospital executives reveals an increasingly high cost of supplies is the second-largest problem facing healthcare systems.
Improving the effectiveness of supply chain will reduce overall costs, increase revenue and lead to a better quality of care.

According to a recent national survey of hospital executives commissioned by Ohio-based Cardinal Health, an increasingly high cost of supplies ranked as the second-largest problem facing healthcare systems today.

To reverse this trend, the survey revealed the majority of respondents are taking action to improve their supply chain, as they agree this step will help reduce costs. Two-thirds of those surveyed said they “strongly agree” that improving the effectiveness of their supply chain will reduce overall costs, increase revenue and lead to a better quality of care.

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As hospitals continue to shift toward value-based healthcare, reducing costs is becoming a more and more essential goal. The supply chain, as well as the products it transports, is the second-highest expense for healthcare providers.

“This is an exciting time for healthcare supply chain management,” said Tony Vahedian, senior vice president and general manager of Medical Services and Solutions at Cardinal Health. “We're seeing executives take action to improve and demand more value from their supply chain. They recognize that maintaining status quo in their systems is no longer sufficient due to the ever-increasing cost pressures in the industry.

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“We believe hospital decision makers understand that the supply chain can be a strategic asset if the industry collaborates to improve its effectiveness and unlock data within it.”

The supply chain management at the majority of hospitals requires staffing that is able to handle multiple — and often excessive — systems lacking the data sharing and transparency necessary to prevent waste.

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The healthcare sector would benefit from advancements in supply chain technology that are used in other industries which deliver analytics and insights to support transparent, data-driven decisions.

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