At the Healthcare Financial Management Association's recent ANI conference in Orlando, Fla., representatives from Global Healthcare Exchange offered some ideas on how hospitals can reduce their supply spend immediately:
• Save an average $12-$27 per order by conducting 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 supply spending as possible.
• Develop a master data management strategy, including the use of global industry data standards, to ensure that critical information is 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.
• Create visibility into both the total cost and efficacy of the products being used in patient care to determine the role supplies play in both cost and quality of the care.
• Focus on bringing more non-file and off-contract spending under contract, especially high-cost physician preference items.
• Save an estimated 1 percent to 3 percent in avoided overpayments by validating contract pricing and using the most up-to-date contract information.
• View the supply chain as a function that operates across the organization; establish partnerships with clinical and financial departments 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 to become a lower-cost customer.