Becker’s Hospital Review recently published an article by Lorne Tritt, CEO of ASP Global, in their Hospital CFO Report. The article, “Don’t let these myths hold you back from direct-to-manufacturer sourcing”, disproves the common myths about direct sourcing that prevent health systems from implementing their own direct sourcing programs.
Direct sourcing connects the buyer to the manufacturer, without unnecessary intermediaries such as product companies who only apply their name brands or “white label” brands. Direct sourcing removes costly steps from the supply chain and unlocks opportunity for product customization for individual buyers. Direct sourcing is the norm in nearly every other industry, and health systems are catching up to their out-of-industry peers. Nearly all of the largest health systems in the country engage in some direct sourcing; several GPOs have opened access to direct sourcing for their members.
Direct sourcing gives health systems control over product quality, cost and design, so why aren’t more health systems implementing their own direct sourcing programs? The answer may lie in these common myths about direct sourcing. Tritt aims to set the record straight and bust these myths in this article, while stressing the benefits that direct sourcing can provide for all types of health systems.
“Leading health systems are building competitive advantages today by including direct sourcing as one of their value-improvement strategies,” says Tritt. “Direct sourcing can benefit a health system of any size, with or without self-distribution capabilities, for sustainable value improvements.”
You can read the full article inBecker’s Hospital Review here.
If you are interested in implementing a direct sourcing program for your health system, contact ASP Global email@example.com.