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Hospital CFOs: the one place where price and quality are inversely related

In few industries is assurance of quality more important than healthcare, especially for supplies utilized at the point of patient care. Yet as much as 50% of the cost a hospital or IDN pays for items like patient amenities and med/surg supplies can be attributed to middlemen taking profit. “You get what you pay for” no longer holds in a large segment of responsibility for hospital CFOs and supply chain managers.


The advent of global sourcing to improve hospital supply quality has created a situation where quality and cost are no longer directly related, but inversely related. Lower costs on many hospital supplies is a result of hospital supply quality improvement initiatives. Global sourcing is the vehicle that delivers it.

Improve your hospital supply quality by flipping the purchasing model 180 degrees


The standard practice of purchasing hospital supplies has followed an ‘outside-in’ model wherein design and quality decisions are made far away from the patient experience and 30-50% of the cost is attributed to middlemen taking profit. Global sourcing flips the model 180 degrees in your favor by taking quality improvement input directly from the clinician nearest to the patient, accessing the global marketplace, then redesigning and returning a product of superior quality at savings of up to 50% compared to the legacy product.


In one simple example, a leading maternity hospital system discovered multiple entities between the makers of their “new mother amenity kits” and the mothers themselves. By connecting directly with the manufacturers, hospitals and IDNs can clearly communicate and elevate the experience they are trying to create for their patients. How important is the first blanket a newborn is wrapped in? What about their first onesie?


Would a manufacturer know just what you want your patient to experience if you told your distributor?


No.


Instead, it’s the little things that make the difference to the patients in hospital supply quality, like long sleeved baby shirts with “mittens” integrated into the sleeves to prevent infants from scratching themselves. Or the instant hot packs that last 20 percent longer providing a greater window for patient comfort.


If a board member ‘hit the bed’ in your hospital what would they say about your hospital supply quality of the sheets, blankets or the toothbrush they found?


How do we know quality and price are no longer inversely related, but directly related?


Our hospital CFOs, purchasing and supply chain partners say things like, “The products received a 10X increase in quality with 30 percent savings.” And “ASP Global generated a better product at half the price.” And “Reducing supply costs while maintaining or improving quality is a top goal. Our global sourcing program through ASP Global accomplishes both goals by improving outcomes and reducing costs.”


Contact info@aspglobal.comor call 404-696-6999.


ASP Global - Corporate Headquarters

7800 Third Flag Parkway

Austell, GA 30168

Phone: (404)-696-6999

Email: info@aspglobal.com

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