How the Role of Supply Chain in Health is Changing

US hospitals and health systems are at a difficult crossroads, facing pressures to reduce the cost of care for patients, but also face lower insurer reimbursement rates, rising supply costs, and rising labor costs. In fact, a recent Morgan Stanley analysis of more than 6,000 facilities found nearly 20% of them were weak or at risk of closing. In response to these market dynamics, supply chain leaders are increasingly being forced to rethink their roles.

“Supply chain leaders, along with a health system’s senior leadership, are redefining the role supply chain can play,” says Doug Golwas , SVP of Corporate Sales at Medline, whose team serves hundreds of Chief Supply Chain Officers at some of the country’s largest hospitals and health systems.  “They are focusing on identifying best practices and forging partnerships to sustain the growing footprint many health systems now have.”

Indeed, now that systems increasingly include hospitals, physician offices, laboratories, rehabilitation centers, and urgent care centers, administrators need to deliver quality across the continuum of care. To do so, supply chain leaders at best-in-class health systems are leveraging their partnerships, internally with clinicians and physicians, and externally with strategic partners such as Medline.

“Medline helps health systems co-design more efficient distribution models, inventory management processes, and product standardization plans, all of which directly lower the cost of care,” says Golwas. Higher fill-rates, enabled by Medline’s high standards for keeping an average of 60 days inventory on-hand, translate into improved service.  Co-designing more efficient delivery models leveraging services such Medline’s Put-Away-Ready® program and tapping into our deep self-manufactured product portfolio lower health system costs. So while supply chain officers’ duties may be far from the “front line” of patient care, their best practices and partnerships form the organizational backbone necessary to provide the best possible care to patients.

Learn more about how Medline creates custom supply chain and clinical solutions for IDNs.