From our viewpoint, it appears that too many healthcare supply chain professionals believe their job is done when they find the best quality, service, and price for the commodities they are purchasing. Then they completely ignore the running (or consumption/utilization) cost of the supplies, purchased services, and technologies they are buying. The running cost of just one commodity you are purchasing could easily represent millions of dollars annually. For instance, a 200-bed community hospital could easily spend $1.3 million on blood products, $1.4 million on pacemakers, and $300,000 on surgical gloves annually. So, if this was your money, where would you spend the majority of your time investigating; the price at the pump or how much mileage per gallon you will get on a tank of gas?
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