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Cardinal Health Inventory Management Solutions
Today’s changing healthcare environment is causing many hospital supply chain executives to reevaluate how their supply chains can drive more value. While healthcare costs have been under the microscope for a long time, we have started to see greater need for cost containment and inventory reduction in recent years. The Affordable Care Act has helped shift the focus from being volume based to value based, taking into consideration the total cost of care.
Reimbursement decisions are now being made with an emphasis on value to the patient, forcing otherwise similar medical device manufacturers to become more competitive by demonstrating additional benefits to the patient and to the overall system of care. Operational concerns such as waste, patient safety, charge capture accuracy and transparency are also under intense scrutiny because of their impact on the overall cost of care. Despite pressures to streamline operations, most hospitals and health systems have failed to effectively address one of their main sources of rising costs and inefficiency – inventory waste. At an aggregated level, the result is an estimated $5 billion of annual waste in high-value medical devicesalone.
Not all medical supplies are created equal, yet, often inventory management solutions fail because they attempt to manage all inventory in the same way. Tongue depressors and cotton swabs don’t require real-time inventory visibility, but it’s a worthwhile investment to track a $10,000 pacemaker in real-time through the supply chain. To tackle your inventory waste problem, consider the following when evaluating inventory management solutions: