Technological advancements are rapidly changing the US healthcare industry. Surgeries are microscopic; patients have virtual access to doctors and many more. But while healthcare organizations have improved patient care, not much attention has been given to procurement challenges faced by companies on the backend. Managing inventory takes hours and supplies aren’t always on stock, that results in delayed procedures, higher procurement costs, and ultimately a negative impact on patients.
To address all such problems and improve healthcare services, it’s vital for companies to improve the healthcare procurement process. However, managing complex supply chains and improving the healthcare procurement process flow is not a simple task. SpendEdge breaks downs four ways that can help organizations to improve the healthcare procurement process and make it more efficient.
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Strategies to Improve the Healthcare Procurement Process
Devise an effective pricing strategy
In order to improve the US healthcare procurement process, companies need to develop an effective pricing strategy. This requires a thorough understanding of costs. Companies can use accounting systems to obtain detailed information related to actual and incremental costs of each service. They can track and manage information on supplies, labor, and other expenses to devise an effective procurement strategy and improve the pricing system. Additionally, organizations can benchmark prices against their competitors by reviewing commercially or publicly available databases.
Improve contract management
Majority of organizations rely on purchasing organizations to manage their contracts and save costs on products and services. However, healthcare service providers must pay attention to their contracts by examining the pricing structure. In a market-based healthcare system, the rates set by competitors significantly impact the prices set for healthcare services. Such market forces must be addressed to avoid being overcharged for products. Companies should also monitor their purchasing contracts and understand “strict confidentiality clauses” regarding prices set by vendors.
Improve the accuracy of orders
Error with the ordering process can sometimes become a struggle for organizations. It leads to revenues losses and hampers the timely delivery of services. Also, it can lead to poor medication error and negatively impact health outcomes.
If companies can improve the accuracy of their orders, less time will be wasted on reordering the correct product. Organizations that control orders can improve the healthcare procurement process. A computerized provider order entry (CPOE) system is one of the ways used by companies to improve order accuracy.
Inability to improve the accuracy of orders can increase the cycle time for procuring products. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to improve the healthcare procurement process.
Utilize analytics to improve operational efficiency
To improve the healthcare procurement process, the organization should use latest technologies supported by analytics. Automating processes and leveraging data analytics can help improve the efficiency of the procurement process. Data and analytics possess the capability to transform the healthcare supply chain into strategic business assets. Focusing more on technologies and automation can reduce financial expenses and support data-driven strategies.