Any hospital CFO or supply chain manager will tell you that they will never compromise product quality just to meet certain budget goals and save on common and commoditized products.
They are, nevertheless, frequently responsible for achieving volumetric cost savings goals year after year. There are commonly thousands of products on a large hospital or health network’s item master. What characteristics should hospital CFOs and supply chain managers seek to drive clinical buy-in and quality improvement?
Becker’s Hospital CFO turned to ASP Global CEO Lorne Tritt for the answers, including insights on specific product categories capable of building high volume savings and value in hospitals’ supply chains and purchasing programs.
- Your highest volume savings may not be your highest volume products. Do you know where they are?
- Do you know how many factories worldwide are capable of producing a huge percentage of your commoditized consumable products? Hint: it’s a lot.
- How valuable would wringing out dozens of purchase orders every week be to a large hospital?
At the end of the day, quality is the most crucial factor. Many forward-thinking hospital CFOs and supply chain managers realize that product quality improvement initiatives are simultaneously capable of streamlining their hospital supply chain and wringing millions of dollars in wasted spending out of the system year after year.