Category Archives: Value Analysis

The Bright Spot in 2015 Hospital Profitability — The Healthcare Supply Chain

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The Bright Spot in 2015 Hospital Profitability — The Healthcare Supply Chain

The profitability picture for 2015 is pretty gloomy.  Yet there is one area where savings shine—the healthcare supply chain.  As the largest expense after labor, reducing medical-surgical supply and processing costs represents the single biggest opportunity for new savings and capital. Financial Pressures and Reform Uncertainties Dim Outlook Unfortunately, Moody’s predicts the outlook for the
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Why the Hospital Supply Chain is your Best Source for Savings

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Hospital Supply Chain Best Source of Savings

Hospitals are caught between the proverbial rock and a hard place.  Hospitals’ operating expenses have grown about 10% annually since 2008—this, while net revenue per adjusted admission has been flat since 2008 and has actually gone down compared with operating expenses.[i] Combined with falling reimbursement and flat-lined patient volumes, healthcare organizations like you are fighting
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Keeping it Clean…Are unorganized supply areas costing you money and compromising patient safety?

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Unorganized Supply Room Like Teenagers Bedroom

Part Two of Two Part Series Do your medical-surgical supply rooms remind you of a teenager’s messy bedroom — things hanging out, cluttered shelves and a look of general mayhem?  Unorganized supply areas are a marker of unorganized processes and the lack of an automated, integrated inventory management system.  This negatively impacts your financial and
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Is Dirty Data Muddying Your Value Analysis?

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Dirty Data Muddying Value Analysis

Part One of a two-part series Your item-master data not only supplies critical information you need for daily procurement and accounts payable activities, it’s also the starting point for your value analysis efforts. But your “source of truth” may not be so truthful. The fact is 30% to 40% of buyer systems are inaccurate.[i] With hospital
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Can the Right Procurement System Drive
Non-Labor Savings?

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Right Procurement Savings

Things are tight in healthcare. Declining reimbursement means health systems are considering all options for margin management – from testing new revenue streams to reducing non-labor expenses 20% to 30%.[i] Optimizing quality and improving financial performance are perpetual objectives for any health system, but at McKesson, it’s become a cornerstone of our Better Health 2020™
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