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Obamacare Transforms the Hospital Supply Chain

Steve Banker writes an article for Forbes talking about the changes and new opportunities that the Affordable Care Act brings to hospital supply chains. It used to be that reimbursements in hospital systems were derived from the number of procedures performed. Now, if patients are released after a procedure and have to be readmitted, providers take a hit for it.

The Master of Your Own Destiny

Banker says the new way for systems to make a profit is to take direct control over procurement. The University of Pittsburgh Medical Center cut out the distributor middleman by leasing a 150,000 square foot warehouse, hiring workers, installing racking, and installing a warehouse management system (WMS), and they “still were able to get a payback within six months based on moving the volume of approximately 10 vendors to self-distribution!” To make back the money of an investment in that size in such a small timeframe is remarkable. The takeaway here is that you should not be afraid to make the big investments when the opportunity for gains is still that much larger. Read the original article for more details: http://www.forbes.com/sites/stevebanker/2014/02/18/obamacare-transforms-the-hospital-supply-chain/

About John Friscia

John Friscia is the Editor of Computer Aid's Accelerating IT Success. He began working for Computer Aid, Inc. in 2013 and continues to provide graphic design support for AITS. He graduated summa cum laude from Shippensburg University with a B.A. in English.

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