In working with health systems over the past 16 years with our Clinical Supply Utilization Management (CSUM) Software and Advisory solutions, we see things happen naturally that you don’t see with other programs or initiatives. These are all positive things that happen which result in cost optimization and process and quality improvements throughout the health system. These unexpected results now seem to be expected when we work with new health systems because we see them happening year in and year out with our existing customers.
Positive Results of a Clinical Supply Utilization Management Program
1. The Hawthorne Effect Occurs – The Hawthorne Effect refers to the phenomenon in which individuals modify their behavior in response to being observed. When you deploy CSUM reporting and benchmarks on an ongoing basis for your department heads and managers to see, they will naturally become more conscious of the products and services they use in their departments. We have seen this for the past 20 years and continue to see this on an ongoing basis. This includes everything from a reduction of food service costs by over $500K annually to a $90K reduction in negative pressure pumps to a $720K reduction in Davinci Robot supplies. Just having a CSUM program does this, and it is amazing!
2. It Tells You a Lot of Good Things – Most see CSUM or any cost management program as a negative and can’t wait till it goes away. With CSUM, because the reporting is ongoing, it shows those key customer and stakeholder departments not only where they need to do better, but it also shows them areas in which they are outperforming and areas in which they have improved. Believe me, the positive results far outweigh the areas that need work. You are going to want to be aware of both.
3. CSUM Provides a Pressure Relief Valve – Most supply chain professionals I talk to today talk about the challenges they face with squeezing more savings out of their new and existing contracts. CSUM provides a bit of a relief valve in that you have another avenue to pursue that will net you big savings beyond what you are already doing with your contracts. When your CFO asks for more savings, you can quickly bring up your CSUM reporting and show the areas that have the biggest savings opportunities in just a few clicks. If that’s not a relief, I don’t know what is.
4. Nothing Slips Past You – The nice part about having a CSUM program is that nothing slips past you. If there are any issues with over-consumption or running higher than your peers, you will already be aware of it.
Save Time with Clinical Supply Utilization Management
Do all of these unexpected things happen to every client we work with? The answer is yes, which is great because they are constantly finding new and different areas that they have become cost optimized in as well as areas that have spiked up and they need to do a little correcting. Another major benefit of having an ongoing clinical supply utilization management program, which I did not highlight above, is that of saving time. Our biggest asset is time and if you can save big dollars, optimize costs, and save a ton of time, then you should really consider a formal CSUM program for your health system today.
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