March 10

Healthcare Supply Chain Professionals: Document Your Value to Your Senior Management

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We are hearing about or seeing firsthand a number of healthcare supply chain professionals being left go from their organizations who we know for a fact were doing a good job. How could this happen?

This is Mission Critical for Healthcare Supply Chain Professionals

Too often, these individuals were dismissed because they didn’t document their value to their senior management, so they were the first to go in hard times. It is therefore mission critical these days for you not to assume that your boss and his/her boss think you and your department are doing a good job of saving money and making others’ jobs easier to perform.

First, you need to send a monthly report to your boss documenting your savings per month, per quarter, and per year. If you don’t, your boss won’t have a clue how you and your department are contributing to your hospital’s bottom line. At the same time, you need to mention other accomplishments for the month that were important, but are either soft savings or no savings at all.

Next, make sure your boss knows that for every dollar your department saved it would take about $20.00 or more in revenues to have the same bottom line effect. As an example, for every $10,000 you saved, it would take $200,000 in new revenues to have the same bottom line effect.

In today’s highly competitive marketplace where your competitors are encroaching on your hospital’s previously staked-out territory with their urgi-centers, surgi-centers, clinics, imaging centers, etc., it’s getting more difficult for your hospital to grow their business, so savings are becoming more important to their survival.

Remind Management of How Much You Reduce Expenses

More and more, your hospital’s senior management are paying greater attention to your hospital’s income statement, which is published monthly showing data from the previous month. It is a report card on the financial health of your organization for any given month and year-to-date.

Your operating profit or bottom line is a calculation of subtracting your revenues from your expenses. In this era of cost containment, reducing your expenses is even better than growing your revenues any way you look at it. Don’t let your senior management forget this fact, or your job could be in jeopardy.


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Tags

healthcare organization, healthcare supply chain, Healthcare Value Analysis, hospital, hospital supply chain, Hospital Value Analysis, reduce expenses, save money, supply chain


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