Supply Chain Management
As healthcare costs continue to escalate and payment models change, efficiently managing supply chain expenses and maximizing revenue has become mandatory. Savings and revenue opportunities still exist within a hospital’s supply chain and purchased services, which typically represent 20 to 40 percent of operating costs. The challenge is that the healthcare supply chain has also become increasingly complex, particularly as organizations consolidate, making many improvements time-consuming and daunting for even the most talented management teams.
Prism’s seasoned supply chain experts bridge that gap to deliver realistic, impactful, and sustainable improvements, even as the industry continues to be roiled by changes. Our consultants immerse themselves in the details to discover cost savings and revenue enhancement opportunities in areas such as pricing and utilization, process improvement, and technology. And the benefits aren’t limited to your bottom line: An optimized supply chain can contribute to improved patient satisfaction and enhanced quality scores.
Prism leverages insights from trusted benchmarking firms, such as MD Buyline and Truven Health Analytics, combined with interviews and the shadowing of key staff, to deliver customized strategies for your healthcare enterprise. By performing a deep-dive analysis and asking the right questions, Prism’s supply chain subject matter experts, including pharmacists, clinicians, and purchased services experts, routinely find and team with healthcare provider leaders to implement millions of dollars in financial benefit.
We partner with executives, physicians, and other supply chain leaders to help hospitals, health systems, and academic medical centers in the following areas:
- Supply Chain Strategy and Optimization. Whether you’ve been involved in a merger or just need to get all your facilities on the same page, Prism can help leaders pinpoint and implement any efficiencies that might be missing. Through decades of experience working with some of the country’s largest healthcare providers, Prism understands what works and where challenges lie in optimizing the supply chain. We help consolidate and redesign supply chain processes for contracting, purchasing, procurement-to-payment, value analysis, distribution, and inventory management. We help you reduce product waste and drive supply chain labor and organizational efficiencies. And we collaborate with physician and nursing leadership to reduce care variation and standardize medical supplies to reflect best practices.
We also work with multi-hospital clients to explore shared services opportunities. These are services that often can be performed more efficiently at the corporate level than at the individual hospital level. Potential shared services may include contract management, data analytics distribution/warehousing, sterile processing, printing, courier, biomed, maintenance, help desk, and lab testing, among many other areas.
Accessible, accurate data is the foundation of a high-functioning supply chain. We promote the standardization and centralization of data by improving the processes used to enter, update, and analyze information, leading to meaningful reporting, ongoing measurement, and the establishment of dashboard metrics.
- Supply Chain Cost Reduction. We collaborate with your team to review and optimize vendor contracts to ensure you receive the lowest prices on supplies and services throughout your organization, and we aggregate purchases to increase rebates and tiers. Prism’s experts will help you lower the prices and utilization of hundreds of items, from linens to blood to IV tubing, and our clients trust we will stand shoulder to shoulder with them until all savings are realized. By implementing improved systems, we will help your team better manage the utilization of supplies, devices, and drugs.
Purchased services typically account for 10 to 20 percent of a hospital’s expenses, yet they are often managed by different departments and/or facilities, which makes it difficult to secure consistent and competitive rates and service levels. It also creates inefficiencies that can affect quality of care and the patient experience. Prism levels the playing field with subject matter experts who bring deep experience in a wide range of purchased services, such as IT, food and nutrition, environmental, facility maintenance, clinical engineering, laboratory, office supplies, telecommunications, and dialysis. We help organize and operationalize system improvements in conjunction with successful vendor negotiation and service utilization strategies.
Our supply chain consultants also help hospitals evaluate and renegotiate GPO relationships to maximize their value to your organization, typically finding opportunities to decrease spending by three to six percent.
- Pharmacy Services. Pharmacy costs are surging across the country, driven by utilization, inflation, new drug approvals in inpatient settings, and specialty drugs in outpatient environments. Prism offers unmatched pharmacy expertise, experience, and resources delivered by a team of seasoned pharmacists who have worked in hospitals and academic medical centers as well as wholesale and retail locations. Learn more about Prism’s expansive pharmacy services here.
Mukesh Gangwal and Jan van Londen | October 2017
Webinar | June 21, 2017
Supply chain tip of the day: 4 ways to get hospital CEOs on board with centralized functions post-merger
Jan van Londen | June 2017
Ramona Lacy, FACHE, Timothy Baker and Jan van Londen | May 2017
Dina Salvaggio | May 2017
Ramona Lacy, FACHE | March 2016
Ramona Lacy, FACHE | January 2016