Costs Rising? A Strategic Partnership Can offer Solutions

Partnerships can offer hospitals creative solutions to difficult challenges

October 31, 2022

Like so many sectors of our economy, healthcare costs are continuing to rise at a rapid rate. However, hospitals are not seeing a corresponding rise in revenue The result is that costs are rising faster than reimbursement at most hospital leading to smaller and smaller margins.

In times like these, you need a distribution and logistics partner who can offer creative solutions for bringing expenses under control. The right partner provides innovative methods for cost-effectively supplying the products and services your clinicians need, to deliver superior patient care.

What should you look for in such a partner? According to a recent survey by Owens & Minor,  227 hospital purchasing leaders identified three areas for improvement which matter most: Cost-effectiveness (78%), Supply Reliability (76%), and Operational Efficiency (75%).

For Cost-Effectiveness, Look for a Partner That Helps Streamline Procurement

Facilities can be served by hundreds of manufacturers. Multiple suppliers add extra costs and complexity to your supply chain, including additional freight and procurement expenses. The partner you choose should offer a program that identifies opportunities to consolidate your purchases through an extensive distribution network, and save your facility significant time and money on procurement expenses.

For Supply Reliability, Look for a Partner with Americas-Based Manufacturing

The supply chain issues currently plaguing so many hospitals and healthcare systems could largely be prevented by partnering with a distribution and logistics firm offering products made in the Americas. While others are waiting on deliveries from around the world, your facility can maintain critical supply levels. You’ll have choices, access and control to maximize impact, in terms of reduced cost and quality of care. Americas-based manufacturing results in both improved supply reliability and risk mitigation for your facility.

For Operational Efficiency, Look for a Partner That Excels in Standardization

Having too many suppliers and product variations can be a source of waste that can undermine quality and have a potentially adverse effect on patient satisfaction. Partnering with the right distribution and logistics company can give your facility actionable data and analytics to make informed, evidence-based decisions about product and supply spending. You can identify opportunities to consolidate and standardize across locations, contracts, suppliers, UOMs, product classes, and categories. The potential results? Better tiered pricing, fewer deliveries and SKUs, reduced freight costs, more predictable patient outcomes, and increased staff efficiency.

To learn about the many ways Owens & Minor can help you reduce overall costs and improve the health of your supply chain, contact us at [email protected] or call 1-866-935-0798.