Supply chain efficiency can help reduce rising healthcare costs

May 16 2013

While the rising costs of healthcare have organizations and patients equally concerned about the long-term future of the industry, there are a number of ways these costs can be reduced, particularly in the supply chain of medical organizations.

The proliferation of innovative technology including mobile devices and ERP systems has gone a long way toward improving supply chain efficiency, which in turn mitigates spending. The sheer number of components in the supply chain means that organizations have numerous opportunities to save money as they send, receive and store items. If a healthcare organization is able to reduce its spending in administrative areas, those savings can ultimately be passed onto the patient.

An article in the online publication HIT Consultant suggested that organizations can save money in the supply chain in a number of ways including automating human processes, reducing waste and capturing data. These practices will help streamline the process and reduce the need to spend copious amounts of money on basic operations.

"As reform continues to force hospitals to find new ways to cut costs and increase effectiveness, many organizations forget about the processes and supplies needed to keep the business moving," the article says. "Getting a better grip on managing a healthcare organization's supply and demand will save tons of money to the organization while also increasing positive patient care."

As cities like Cleveland continue to grow as leaders in the healthcare industry, it will become important for hospitals in the area to incorporate these tactics into their supply chain management strategies. Working with an Ohio logistics company will help organizations improve various aspects of their supply chain and attain the level of efficiency needed to see significant cost savings.