News Stories to Help Illustrate Your Exam Answers:


‘Obamacare’ and the transformation of hospital supply chains

CIPS 18 February 2014

The US Affordable Care Act (ACA) – popularly known as ‘Obamacare’ – has been ‘transforming big hospitals’ supply chains and shining a light on a discipline previously dismissed in (US) healthcare’, according to Forbes (18 February 2014).  Falling reimbursements have forced large hospital systems to seek savings in new areas – notably their end-to-end supply chains.

The US Affordable Care Act (ACA) – popularly known as ‘Obamacare’ – has been ‘transforming big hospitals’ supply chains and shining a light on a discipline previously dismissed in (US) healthcare’, according to Forbes (18 February 2014).  Falling reimbursements have forced large hospital systems to seek savings in new areas – notably their end-to-end supply chains. ‘Typically, if the network has more than four hospitals, savings in procurement become a major opportunity. Historically, many integrated delivery networks ordered from large medical supply distributors (which) bought in quantity, broke the bulk, delivered smaller quantities to their clients, and earned a 3­-6% mark-up for their efforts. Now larger chains are building warehouses, automating them, ordering direct from the manufacturers and eliminating the middle man markup. In UPMC’s (University of Pittsburgh Medical Center) case, they leased a 150,000 square foot warehouse, installed all the racking, hired new workers, installed a warehouse management system (WMS), and still were able to get a payback within six months, based on moving the volume of approximately 10 vendors to self-distribution.’

http://www.forbes.com/sites/stevebanker/2014/02/18/obamacare-transforms-the-hospital-supply-chain/

Page Loading
Page Loading