Article

Med/Surg as a P&L Advantage: 3 Strategies for Non-Acute Providers

November 14, 2025
surgical operating room
In non-acute healthcare, medical/surgical (med/surg) supplies are often viewed as another expense. Office managers and other stakeholders think of the essential supplies as an unavoidable cost of doing business.

While the expenses are necessary, the med/surg program as a whole is often underutilized, resulting in untapped value being left on the table. Med/surg is one of the largest spending categories for non-acute facilities. With the right approach, it can be transformed from a cost center into a performance driver.

By rethinking supply management as a strategic opportunity, non-acute providers can do more than stock shelves with med/surg products. Facilities can use the program to reduce costs, strengthen operational confidence and even boost the bottom line. With smarter strategies, med/surg can work harder for the organization.
 
Here are three strategies to turn medical and surgical supplies into a profit and loss advantage:

STRATEGY 1: STANDARDIZE AND CONSOLIDATE TO DRIVE SAVINGS

One of the most effective ways to reduce costs in med/surg is to eliminate unnecessary product variation. Many non-acute providers carry dozens or even hundreds of different SKUs that largely serve the same purpose. This product variability creates procurement inefficiencies, increases waste and weakens a facility’s negotiating power with medial suppliers because they have less leverage than if they consolidate purchasing with fewer vendors.
 
By standardizing products across the organization and across all locations, healthcare facilities can secure better pricing, reduce costs and optimize rebates. Consolidating purchases across multiple sites can also move the organization into higher volume tiers, unlocking discounts it would not have qualified for as a single facility.
 
Applying Lean methodologies can help reduce waste and streamline workflows when managing med/surg supply chains. Lean practices help eliminate redundancies, optimize storage and create smoother, more efficient operations.
 
Every reduction or consolidation in SKU count, upgrade in tier pricing, and reduction in waste directly improves the profit and loss statement. These efforts ultimately reduce costs and strengthen financial performance.

STRATEGY 2: MAKE DATA-DRIVEN DECISIONS

The key to unlocking greater value from med/surg supplies is finding insights in data. Purchasing and usage data can reveal valuable trends to enable stakeholders to make informed decisions that reduce costs, maximize inventory and avoid costly buying mistakes.
 
Analyzing purchasing patterns enables procurement leaders to pinpoint where standardization can occur. The analytics can also find where opportunities exist to switch to more cost-effective products or brands, such as lower-cost private label options.  
 
Reviewing supplier performance data also allows facilities to address potential stock issues before they escalate, preventing overordering, costly last-minute purchases or product shortages. Collaborating with supply chain partners like a group purchasing organization (GPO) can help non-acute providers implement customized dashboards that turn data into action. The dashboards can highlight key metrics, support more accurate forecasting and provide visibility into ordering cycles to enable smarter purchasing decisions.
 
Inventory optimization is another area that can lead to cost savings. Expired or obsolete med/surg products can take up valuable shelf space and also negatively impact the profit and loss statement. By streamlining and strategically adjusting inventory based on needs, organizations can maintain optimal stock without over-ordering, ensuring med/surg supplies are used efficiently and cost-effectively.

“With access to industry-leading supply chain solutions, private label savings through Novaplus and data-driven insights, Provista enables non-acute providers to maximize their med/surg performance.”

STRATEGY 3: ENGAGE DECISION MAKERS TO FIND IMPROVEMENTS
Reducing costs and improving financial performance starts by aligning departments with common med/surg goals. Too often, supply chain employees, clinical staff and financial leaders operate in silos, missing out on shared opportunities to improve processes and profitability.
 
Bringing together procurement, finance and clinical teams creates a holistic view of how med/surg supply decisions impact broader financial goals. By demonstrating how standardization, consolidation and data-driven procurement translate to tangible profit and loss improvements, facilities can get buy-in from leadership and drive sustainable change.
 
It’s also important to connect med/surg staff to broader organizational objectives, such as clinical efficiency and patient care. A well-managed supply strategy can lead to fewer stockouts, minimizing procedure delays and preventing employees from wasting time on supply-related issues.
 
Engaging stakeholders with supply chain performance dashboards that tie directly to financial targets keeps teams aligned. When non-acute providers can see clear links between supply performance and profitability, med/surg moves from a line item expense to a strategic asset.
 
A SMART MED/SURG STRATEGY IMPROVES P&L
Med/surg supplies don’t have to be a sunk cost for non-acute providers. With smart supply management strategies, facilities can reduce costs, improve operational efficiency and strengthen financial performance. By standardizing products, making data-driven decisions and engaging cross-functional teams, the med/surg strategy can directly impact profit and loss statements in a positive way.
 
Organizations that take control of their med/surg spending gain more than cost savings. They also gain confidence, such as confidence in their ability to meet financial targets, adapt to changing care environments and deliver quality care without compromising operations.
 
Partnering with a GPO like Provista helps turn med/surg potential into measurable results. With access to industry-leading supply chain solutions, private label savings through Novaplus and data-driven insights, Provista enables non-acute providers to maximize their med/surg performance.
 

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