Hospitals’ Supply Chain Savings Opportunity Increases to $25.4 Billion a Year

Guidehouse's 2018 Supply Chain Analysis

According to a recent Guidehouse study, hospitals could safely reduce their supply expenses by an average of 17.7% or $11 million annually per hospital. This equates to an annual cumulative savings opportunity of $25.4 billion — a 10.2% increase compared to 2017. See infographic below for more details or download the PDF.

supply chain analysis


1. Guidehouse, Hospitals Could Save $23 Billion Annually by Streamlining Supply Chain Operations, Product Use, Sept. 13, 2017.  

Analysis Methodology
The study of 2,300 U.S. hospitals found that if all analyzed hospitals could match the performance of the top quartile of hospitals for supply chain budget efficiency, $25.4 billion annually could be saved on supply chain products and related operations, processes, and procedures. Total supply costs include medical and implantable device costs, medical/surgical and pharmaceutical supplies charged to patient care departments, and supplies related to buildings/fixtures, maintenance, and plant operations. Capital equipment, labor, utilities, and some specialty pharmaceuticals were not included in the analysis. Data was extracted from Definitive Healthcare and covers 2016-2018.

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