As debate over how to view, and fund, healthcare through governmental reform progresses, it creates more budgetary pressures on healthcare facilities trying to manage an erratic stream of payments from disparate sources. However, things evolve, payment pressures will not abate, which is why having the supply chain involved at the decision-making level makes fiscal sense.
The supply chain represents 40 to 45 percent of hospital or healthcare system operating expense, second only to labor costs. This mix is expected to keep shifting, with the supply chain potentially overtaking labor costs within the next 5 years. Creating successful supply chain strategies requires a top- down approach with knowledgeable stakeholders involved at the highest levels.