Supply Chain Management
Medical and non-medical supplies, drugs, and purchased services consume 25%-40% of hospital operating expenses annually and continue to increase. GPO contracts simply don’t provide competitive pricing and appropriate terms for hospitals in key areas such as medical devices and purchased services. Meanwhile, escalating drug costs and changes to 340B pharmacy purchasing programs are negatively impacting half of all U.S. hospitals. Healthcare providers face the challenges of implementing supply chain technology and best practices to automate core processes and effectively managing overall supply, drug and purchased service expenses, all while delivering exceptional customer service.
Prism’s healthcare supply chain management experts help hospitals achieve significant savings on their operating expenses. Our clients typically achieve a 4%-8% reduction in total supply expenses, translating into millions of dollars in savings. We do this by comprehensively addressing key pricing, cost, utilization, process improvement, and IT issues to better manage how supplies, drugs, and services are purchased and used across the enterprise.
Prism’s healthcare supply chain management services help hospitals navigate the complexities of thousands of vendor agreements to deliver high-impact, sustainable improvements. Our team includes supply chain experts, pharmacists, clinicians, and other professionals who collaborate with your physician, pharmacy, nursing, and supply chain/support service leaders to drive cost reductions and improved terms and conditions. We also work with you to remove process inefficiencies that typically lead to internal supply waste.
And unlike many healthcare supply chain management consultants, Prism’s consultants are independent – giving us the objectivity needed to recommend the best options to drive maximum return. Our team has some of the most significant experience in the industry, having worked with many of the largest and most-recognized health systems and held senior leadership positions in the top healthcare consulting companies over the past 20 years.
Other ways Prism can help include:
- Consolidate and redesign supply chain processes for contracting, purchasing, procurement-to-payment, value analysis, distribution, and inventory management.
- Explore shared services opportunities across the health system, including purchasing, contract management, data analytics, distribution/warehousing, sterile processing, printing, biomedical equipment, maintenance, and much more.
- Maximize pharmacy impact by evaluating vendor contracting, payer contracts, operations/automation, charging and revenue enhancement, formulary development, clinical guidelines, transitions of care, and 340B program (where applicable).
- Improve internal data standardization, centralization and other data processes to ensure meaningful and accurate reporting, reduce inaccuracies and rework, enhance ongoing measurement, and support use of dashboard metrics.
- Optimize vendor contracts and aggregate purchasing arrangements so you receive the best prices and rebates on supplies and services throughout your organization – from linens to IV tubing.
- Reduce the costs of purchased services (IT, support services, facility maintenance, lab, dialysis, and more) through system improvements and smarter vendor negotiation and service utilization strategies.
