Medical-surgical supply costs have become the second highest and fastest-growing operating expense for providers. In an effort to help curb spending, healthcare technology company GHX released a list at the HFMA-ANI conference in Orlando that aims to give providers greater control in this area.
GHX's list is designed to give organizations greater visibility to help them meet new reporting requirements for the cost and quality of care they provide.
The GHX Top 10:
- Save an average of $12 to $27 per order by conducting as much of one's purchasing electronically with as many trading partners as possible.
- Automate the procurement process, from the point of contracting to the point of payment, to streamline operations and boost efficiencies.
- Centralize purchasing across the organization to provide visibility into and control over as much of one's supply spending as possible.
- Develop a master data management strategy, including the use of global industry data standards, to ensure that critical information is kept as up-to-date as possible and that there is "one source of truth" to feed clinical and financial IT systems.
- Understand the total cost of ownership of the supply chain; in addition to the price paid, consider the financial implications of procurement, logistics, inventory management, charge capture and reimbursement, among others.
- Create visibility into both the total cost and efficacy of the products being used in patient care, so as to determine the role supplies play in both the cost and quality of the care the organization provides.
- Focus on bringing more non-file and off-contract spend under contract, especially high-cost physician preference items.
- Save an estimated 1 percent to 3 percent in avoided overpayments by validating contract pricing and making sure the most up-to-date contract information is being used.
- View the supply chain as a function that operates across the organization; establish partnerships with clinical and financial departments to develop and work together to achieve mutual objectives.
- Collaborate with trading partners to achieve mutual benefits. Share insights into what happens to products once they arrive at the facility and ask suppliers for insights into how one can become a lower-cost customer to serve.
GHX will provide conference attendees with a personalized report on their savings potential using GHX software solutions and services at booth #1634 during booth hours on June 27 and 28. It also will distribute to all attendees a new white paper on contract management entitled "Gaining Control of Your Hospital's Fastest Growing Operating Expense."