Faced with growing medical-surgical supply costs as reimbursements shrink and healthcare reform looms, healthcare providers can reduce the operational expenses (opex) associated with their supply chains immediately—and we believe we know the top 10 ways to do it.

Supply chain opex is the second highest and fastest-growing operating expense for healthcare providers. The list below comprises opportunities to provide the kind of visibility necessary for organizations to meet new reporting requirements for the cost and quality of care they provide.

The GHX Top 10:

1. Save an average $12.00-$27.00 per order by conducting as much of your purchasing electronically with as many of your trading partners as possible.
2. Automate the procurement process, from the point of contracting to the point of payment, to streamline operations and boost efficiencies.
3. Centralize purchasing across your organization to provide visibility into and control over as much of your supply spending as possible.
4. Develop a master data management strategy, including the use of global industry data standards, to ensure that you are keeping critical information as up-to-date as possible and that you have “one source of truth” to feed clinical and financial IT systems.
5. Understand the total cost of ownership of your supply chain; in addition to the price paid, consider the financial implications of procurement, logistics, inventory management, charge capture and reimbursement, among others.
6. Create visibility into both the total cost and efficacy of the products being used in patient care, so that you can determine the role supplies play in both the cost and quality of the care your organization provides.
7. Focus on bringing more non-file and off-contract spend under contract, especially high-cost physician preference items.
8. Save an estimated 1-3 percent in avoided overpayments by validating contract pricing and making sure you’re using the most up-to-date contract information.
9. View the supply chain as a function that operates across your organization; establish partnerships with clinical and financial departments to develop and work together to achieve mutual objectives.
10. Collaborate with your trading partners to achieve mutual benefits. Share insights into what happens to products once they arrive at your facility and ask your suppliers for insights into how you can become a lower-cost customer to serve.