Most hospitals, systems, and IDNs are obtaining the best prices on the products, services, and technologies that they are buying, and they have substantially standardized on the commodities that they are employing. So where do they go from here to save money? The answer is to unlock the power of data intelligence to dig even deeper and broader for supply expense savings than ever before. From our experience, there are three types of data intelligence that lead to more savings for your healthcare organization as follows:
1. Historical Data: This year-over-year data can pinpoint big jumps in your commodity purchases that can’t be explained and should be investigated. For instance, if your suction catheters’ usage increases year-over-year by 23% while your census stays stable for the same period, this is a good savings candidate to be investigated by your value analysis teams.
2. Predictive Data: Uses current and past data to let you make a prediction about a future occurrence. For example, if you see trending data that leads you to believe that your blood and blood product costs are creeping up without cause, it is time to red flag this commodity group for a VA study.
3. Utilization Data: This is the use of statistical quantitative analysis to uncover wasteful and inefficient consumption, misuse, misapplication, and value mismatches in your supply streams. If your utilization analytics determine that you are using three times the skin prep kits per procedure than your peers, you can be assured that you have a utilization misalignment that needs to be justified.
As these data intelligence techniques suggest to me, supply chain expense management now equates to scientific management. No longer can we expect to rely solely on our GPOs for new price savings or standardization opportunities. We now need to base our cost optimization decisions on the principles of efficiency, effectiveness, and lean management. In my opinion, there is nowhere else to go for double-digit supply savings!
Below are some similar articles that you may find interesting.
Healthcare Supply Utilization Management: What It Is and What It Is Not!
Turn Your Supply Chain Expense Data Into Actionable Insights
3 High-Impact Savings Areas to Increase Your Hospital, System, or IDN’s Bottom Line