We here at SVAH have been predicting that your GPO savings will net out to about 1.9% in 2021. While this is a historic low point in GPO yields, it can be just the starting point for your healthcare organization to grow your GPO savings yields by a factor of ten. The key here is […]
Most of us are aware of the benefits of checklists. They assure us that we don’t miss any steps and motivate us to take action. That’s why I thought it would be appropriate to provide below a supply chain expense management checklist to guide your expense management savings efforts in 2021: Evaluate your 2020 expense […]
As we head into another year, we believe that it is a good time to reflect on what supply chain expense management strategies, tactics, or techniques were the most successful for you in 2020. Then, you need to develop an action plan to double-down in 2021 on what worked best for you in 2020. On […]
Too often when a product, service, or technology is purchased, it is considered a completed transaction by your contract managers once they have obtained the best price, and then it is quickly forgotten. You might not realize it, but this is the #1 reason why you would have higher per patient day supply costs than […]
I’m sure you would agree that it’s never been more important, due to the new economy we are living and working in, for a healthcare organization to save every dollar, squeeze every penny, and trim every expense that it can on its non-labor expenses. Just as important, it is mission critical that supply chain professionals […]
Based on our observations, I would bet that most of our readers are using Excel spreadsheets for value analysis, utilization management, and analytics. It’s been our experience that despite the benefits and popularity of Excel, it is not always the best tool for the purpose that it is intended. I can make this statement because […]
Saving money is as much an art and science as logistics, inventory, or risk management. In fact, it requires a set of core beliefs, system thinking, and a smidgen of behavioral science if you are to be truly successful in reducing your supply chain expenses. Most supply chain professionals believe saving on their expenses is […]
Over the last few decades, GPOs have been the driving force on price and standardization savings for healthcare organizations. However, as Isaac Newton’s third law states, “With every action there is a reaction.” The reaction or result of taking your GPO’s price and standardization at face value is that you are missing three things you […]
I have often written about the Supply Savings Triangle (or a combination of price, standardization, and utilization tools, techniques, and tactics) as the ultimate savings strategy for any and all supply chain organizations. You might call it the triple header of supply chain expense management. As a reminder, here are three ways the Supply Savings […]
Due to the growing maturity of group purchasing and custom contracting in the healthcare industry, hospitals, systems, and IDNs have already achieved a significant amount of savings in their pricing and standardization. However, these savings are starting to be constrained because of the law of diminishing returns. In fact, SVAH’s studies show that the overall […]