4 Effective Ways to Get More Out of Your Healthcare Procurement Process

Technological advancements are rapidly revolutionizing the US healthcare industry, with surgeries becoming microscopic and patients gaining virtual access to doctors. However, while healthcare organizations have made strides in improving patient care, insufficient attention has been directed towards addressing procurement challenges on the backend. Inventory management consumes significant time, and supplies are frequently out of stock, leading to delayed procedures, heightened procurement costs, and ultimately, a negative impact on patients.

To mitigate these challenges and enhance healthcare services, companies must streamline the healthcare procurement process. However, managing complex supply chains and optimizing the procurement process for hospitals is no easy feat. SpendEdge delineates four ways organizations can improve the healthcare procurement process and enhance efficiency.

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Strategies to Improve the Healthcare Procurement Process

Devise an effective pricing strategy

Improving the US healthcare procurement process necessitates the development of an effective pricing strategy, grounded in a comprehensive understanding of costs. Companies can leverage accounting systems to acquire detailed information on actual and incremental costs for each service. By tracking and managing data on supplies, labor, and other expenses, organizations can formulate a robust procurement strategy and enhance pricing systems. Additionally, benchmarking prices against competitors through commercially or publicly available databases enables companies to establish competitive pricing structures.

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 hospital 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.

In conclusion, addressing procurement challenges in the US healthcare industry is imperative for optimizing patient care and achieving operational efficiency. By implementing effective pricing strategies, enhancing contract management, improving order accuracy, and leveraging analytics, organizations can streamline the healthcare procurement process and drive positive outcomes for patients and healthcare providers alike.