Streamlined Supply Purchasing Practices Could Boost Hospital Savings

Guidehouse Study on Supply Chain Savings via HealthData Management

Facilities across the nation could cumulatively save $23 billion each year by streamlining supply chain operations and product use, contend researchers who based results on a recent survey of more than 2,300 hospitals.

Better supply chain operations could trim an average of 17.8 percent from a facility’s total supply expense, according to an analysis of the survey results by Guidehouse.

Improving supply purchasing is important for healthcare organizations because those expenses are typically the second largest operating expense for facilities, trailing only labor costs. Money saved by reducing supply ordering inefficiency could be thus be directed to increase staff or adding other medical equipment.


Guidehouse has found, somewhat counter-intuitively, that the highest performing providers are simultaneously able to decrease cost and improve quality, in part by reducing clinical variation.

Rob Austin, Associate Director, Guidehouse via HealthData Management 

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