78% of health systems have manual inventory count steps within their end-to-end supply chain operations.
Healthcare systems require adequate supplies in order to deliver high quality care, and the process for securing such supplies can be time-consuming and costly. Supply chain costs are the second largest operating expense behind labor, and physicians and nurses currently spend, on average, nearly 20% of their work week on supply chain and inventory management. Health systems need to analyze equipment needs, vendor options, pricing data, and policy regulations in order to ensure that they efficiently procure needed supplies in compliance with fair contracts, and manual methods result in price discrepancies and lengthy contracting periods that generate high administrative costs. Building supply chain capabilities that enable providers to understand costs vs value, renegotiate pricing, and bring discipline to supply purchasing and utilization are can help manage costs.
Additionally, health systems lack processes for efficiently managing the inventory they do procure, and clinicians waste time searching for the equipment they need, impacting quality of care. 1 in 4 hospital staff have seen or heard of expired products being used on a patient, and 18% have seen or heard of a patient being harmed due to a lack of necessary supplies.
