Knowledge Center

Learn how Baptist Health forged its traditional AP cost center into a cost savings driver.

Explore opportunities for improving the procure-to-pay cycle to generate better outcomes for both health care organizations and their supplier partners.

Consider how direct sourcing can enable access to PPE and the leading practices of building supply chain diversity and resiliency for the future in this Banner Health case study.

The purpose of this paper is to share lessons learned and successes in contract management. Five years ago, Contract Management consisted of signing a few Letters of Commitment through our Group Purchasing Organization and trying to keep track of them in a three ring notebook.

The initial purpose for developing a socially responsible, closed loop supply chain was to enhance our environmentally sustainable practices by purchasing more responsible and locally sourced products.

This is an on-going operational excellence initiative and our results have certainly validated our approach and produced an immediate beneficial impact. The methodology we have implemented truly drives improvements and bottom-line results. We are very proud that the Executive Leadership at our organization has promoted the use of Purchasing’s approach in assessing and managing other areas of the organization.

This paper will present health care procurement strategies of four countries - the United States, Botswana, the United Kingdom, and China - as a means to evaluate volume aggregation under different health care delivery models.  

This paper examines the journey that an organization travels to arrive at an outsource decision and the challenges that it should be alert to post contract. The Literature Review section provides a context for the recommendations offered in the case study illustration. The recommendations deliberately focus on providing proper governance and oversight during the operational phase after the contract has been awarded and is up and running.

A well-conceived strategic sourcing program starts with an analysis of the total spend or operating expenses of the organization utilizing an “ABC” analysis and category/spend segmentation matrix. This analysis allows for the prioritization of the “sourceable” or “manageable” spend as distinct from other expenses such as taxes, depreciation and interest for which different strategies should be effectively applied.

Purchasing in healthcare is largely based on a hierarchical management style. In an experimental case started in 2004, at Floyd Medical Center in Rome, Georgia, this standard was altered. The introduction of a team concept combined with lean manufacturing practices to this traditional purchasing setting was unique. The results of this radical change over the past eight years have been exceptional. The paper describes the steps taken to change the culture, the actions taken to implement lean tools, and the wins achieved by the team.

Dale L. Locklair, FAHRMM, CMRP Vice President of Procurement and Construction McLeod Health Florence, SC

This paper addresses the importance of the supply chain on overall health care costs and how transparent data can lead to a best practice supply chain. Identifying necessary data as well as the location of that data to understand a complete cost structure is a challenge for supply chain leaders. Fragmented systems in healthcare lead to a weak and inefficient supply chain. This data fragmentation in healthcare causes frustration and failure in optimizing the supply chain.

Read how UPMC Health System is improving lives through redefined models of health care delivery, technological innovation and cutting-edge medical research.