Hospitals Could Save about $10 Million a Year in Supply Chain, Guidehouse Study Finds

Guidehouse Study via Healthcare Finance News

Hospitals are spending about $10 million more a year in the supply chain than is necessary, according to a new Guidehouse study. The study looked at 2,300 hospitals and their supply spend and found the providers could reduce their annual supply budgets by a total $23 billion, or about $10 million per year, per hospital, according to Guidehouse. This is a savings of about 18 percent. 

When supply chain represents 30 percent of hospital operations, ranking second only to labor in cost, 18 percent represents a significant amount of savings.

Surprising, the study found that the top performers for supply chain also scored well in the top-performing measures for quality metrics.


You don't have a lot of control over the pricing of drugs. The way you can control pharmaceutical expense is through formularies. What the study found is an opportunity to save money in areas where prices vary widely. This is in physician preference items such as hips and knees, pacemakers and stents, and on services for food, janitorial services, and other contracts.

Rob Austin, Associate Director, Guidehouse via Healthcare Finance News

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