Article

4 Data-Driven Ways to Streamline Your Non-Acute Healthcare Supply Chain

April 27, 2023
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A centralized, stable and streamlined supply chain can help non-acute healthcare facilities drive down costs. But implementing sustainable improvements remains an ongoing challenge, especially as the complexity of the medical supply chain continues to increase. Even when non-acute providers do streamline costs, they experience challenges extending the savings across multiple sites and specialties.
 
Because the non-acute healthcare industry is largely price driven, an efficient supply chain is critical to helping facilities compete on price. Achieving this efficiency requires using data and analytics, which deliver the transparency and insights needed to help control pricing and reach an organization’s supply chain goals.

“Today’s non-acute healthcare providers need a data-driven approach that aligns with their strategies to improve patient care while being mindful of costs,” says Jeff Lawrence, Vice President of Business Development for Envi®, which is a Provista company offering a proprietary materials management software solution.

Provista has identified four data-driven ways to streamline and stabilize the non-acute healthcare supply chain to ensure facilities are paying both competitive and accurate pricing, and have visibility to mitigate potential problems.

1. MANAGE YOUR ITEM MASTER TO ENSURE ACCURATE DATA

All data and records about inventory products in an item master must be current, accurate and complete. Item master records must also be consistent across all facility locations—when an organization such as an ambulatory surgery center has multiple sites—to streamline purchasing and avoid pricing discrepancies across locations.

“Too often, we see different sites paying different prices for the exact same item. Eliminating this price disparity requires insights and transparency into pricing and also into item master records,” Lawrence points out. “By using Procurement Services, organizations gain the visibility needed to ensure consistent pricing, align with the lowest available contracted price, and can streamline suppliers from dozens to just a few.” 
 
As a leading non-acute group purchasing organization, Provista helps members create, cleanse and maintain their item master lists. The data can reveal areas where facilities can reduce vendors, streamline procurement and gain better tier pricing.

Contract terms and prices change over time, and organizations may not stay abreast or even be aware of new pricing. Facilities need a process in place to ensure they are paying the correct price.

“Facilities may have a new contract that has different pricing than a previous one,” Lawrence explains. “However, key people in the organization may not be aware of the new contract terms, which means facilities may continue to pay the old, incorrect price.” 
 
In addition, distributor and supplier invoicing may not reflect updated pricing, which makes the reconciling process more difficult. Provista can help ensure invoicing matches contract prices and also handle price reconciliation to resolve incorrect payments.

3. GATHER DATA USING A MODERN PROCUREMENT PLATFORM

Facilities understand the need for accurate data, but they may not know the best way to bring it together and make it easily accessible to everyone who must access it. Organizations need a centralized platform that integrates and manages data for insights. That platform should also be user-friendly.
 
Provista recommends Envi, which allows organizations to see their spending across all locations. Envi enables automation, integrates with clinical and financial systems to centralize and validate data, and offers advanced capabilities to make materials management easy.

“Data that’s integrated on a centralized platform provides the transparency and visibility non-acute healthcare facilities need in order to gain insights into spending and opportunities,” Lawrence says.

“With Provista’s data analytic solutions, organizations can make their supply chains more efficient while identifying new and ongoing savings that improve profitability. ”

4. PERFORM COST-SAVINGS ANALYTICS FOR INSIGHTS INTO PRICING

Gathering all purchasing data is a good start, but analytics are needed for the information to become actionable. Analyzing data:

  • Provides insights and visibility to help with benchmarking
  • Enables price parity across locations
  • Helps ensure the best tier pricing for facilities
  • Determines how buying behaviors impact pricing

Provista offers a range of innovative technology and analytics capabilities, including cost savings analysis to compare a facility’s current pricing to Provista’s contracts to identify which contracts offer the most value. Members can use Provista’s advanced analytics tools to uncover potential savings and evaluate competitive buying behaviors.

IMPROVE THE SUPPLY CHAIN AND REAP SAVINGS USING DATA
Streamlining the supply chain to reach a holistic state requires non-acute healthcare facilities to optimize their data by applying analytics. Data and analytics can streamline and improve processes across procurement and the end-to-end supply chain.
 
Provista offers help every step of the way. With Provista’s data analytic solutions, organizations can make their supply chains more efficient while identifying new and ongoing savings that improve profitability. 
 

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