Supply Chain Enhancement for Hospitals

As the medical industry begins to incorporate more streamlined efforts to adapt to numerous healthcare initiatives, there is little doubt about the fact they are considerably enhancing hospital supply chain operations by overhauling the entire structure.

The hospital supply chain is in a cathartic process—thanks to the ACA (Affordable Care Act) hospitals are incorporating strategies to minimize the costs associated with patient care without compromising quality of care.

The ACA has given plenty of groundbreaking opportunities to alter operations, which has also given birth to numerous challenges and obstacles that need to be overcome. While people expect the ACA reform to significantly slash patient healthcare costs, supply chain experts and specialists, along with leaders of associations, are quite fixed on the fact that hospitals do require a sustainable and consistent balancing act, especially when it comes to enhancing their processes.

With profit margin plummeting along the supply chain of the healthcare industry, several providers have begun to analyze and reevaluate hospital models as well at ethical practices by introducing innovative tech like RFID and barcodes, in addition to collaborating with management firms to emphasize more on meeting staffing needs and specifications.

While it is true that the Affordable Care Act did leave a deep mark on the operational efficiencies of supply chain processes, bear in mind that this is just a single element of the entire transformation.
Before the implementation of the ACA, hospitals were reimbursed depending on volume, the overall consumption of medial materials, patient intake and service payouts.

However, now hospital reimbursements are primarily based on incentives, value additions and performance. The fundamental aspect behind this change in the hospital model is none other than the Affordable Care Act’s HVBPP (Hospital Value Based Purchasing Program), which is also known as CMS, which stands for (Centers for Medicare and Medicaid Services), which focuses on rewarding hospitals solely on the basis of how well they taken care of their patients and the overall quality of care.

Technological Swings – The Shift to Cloud
Numerous healthcare technology organizations and companies efficiently enable hospitals to acquire effective transparency, as well as visibility to all the data they require to precisely figure out costs, through cloud-based systems.

This has had tremendous positive implications when you talk about streamlining hospital operations and increasing productivity. For example, in the absence of a cloud system, if a patient were admitted into an emergency room, the hospital would collect all relevant data and information. But as soon as the patient is moved to another department, let’s say to a surgery center, the data collected was never transferred, which really hampered productivity and efficiency.

Data and Logic
Cloud technology considerably helps link all sources of data, enabling hospitals to effectively rationalize all collected information. It also provides them with presentable information for enhancing user efficiency. Nothing is more important than for the management of the hospital to accurately comprehend and rationalize the data in their hands, especially when so many stakeholders are involved.

Cost Savings and Collaboration
Another effective method of increasing collaboration and cutting costs is enhancing a hospitals organizational integrity, especially when it comes to managing the entire staff. According to a statistical analysis posted by the HIDA, it was identified that when hospitals faced the choices of cutting labor, capital, or supply costs, a majority picked supply. However, expert supply chain professionals reflect that it is more advantageous if a hospital reanalyzes its labor.

The Bottom Line
There is no doubt that technology and innovation combined with organizational solutions have become the number one factor of facilitating monitoring and sustainability in the supply chain, experts state that there is indeed a truck load of work to be carried out if the industry is looking to substantially improving collaboration.
Learn more about supply chain solutions for hospitals.

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