The capabilities of global sourcing to improve the quality and clinical utility of common, commoditized hospital products while simultaneously reducing costs and improving the patient experience is a value-based must for self-distributing hospitals and IDNs.
ASP Global literally wrote the book on how to implement global sourcing within self-distribution programs.
The benefits include standardization not otherwise attainable, improvements in product control, quality and selection, data control, cost visibility, and reduction in time spent by clinicians foraging around the supply room for the tools they need.
Step 1: Pickoff your highest volume products.
Forward thinking hospital CFOs and supply chain executives are also discovering that they are already using global sourcing in their hospital medical supply purchasing programs, but don’t realize it.
Step 2: Put your clinicians in the spotlight.
For self-distributors, how many of your common commoditized hospital products receive clinical improvements on an annual basis? How would you like to give your clinicians more of exactly what they want while assuring quality, mitigating risk and saving 30% or more on those items?
Step 3: Unbundle.
A 1.5% rebate tied to a 3% increase in prices on required new product categories within the agreement leads to higher overall program costs. The balance sheet doesn’t care if financial gains arrive via a check or simply lower product costs. Stop chasing the rebate check and broad “discounts” on bundling. Go for the deeper dive on each product or category.
Step 4: Improve the patient experience through product customization and expansion.
“Our patient amenity and branded items are going to determine, at least in part, how we are perceived and measured including our HCAHPS scores,” said Westchester Medical VP of Supply Chain Operations Jim Connor. “We are using global sourcing to ensure the quality of those are high while keeping costs low.”
Step 5: Get your master's degree by using global sourcing to respond quickly to shifting markets.
Through direct access to the world marketplace you can source new items your clinicians and your patients demand, to your exact specifications, much more quickly in response to changing market demands.