When asked about supply-chain priorities, respondents overwhelmingly reported that cost and quality were the most important. According to the survey results, 88.7% and 88.1% of respondents, respectively, said cost and quality are very important. About 43% said delivery is very important and 20% said choice is very important.
At Morristown (N.J.) Medical Center, a 592-bed hospital that's part of Atlantic Health System, the strategic sourcing staff has targeted cardiac and orthopedic service lines in recent years for cost reductions, as well as evaluated medical reprocessing for the facility.
Although the hospital's supply-chain staff support reprocessing and see the financial gain, it's been challenging to convince the clinical leadership that a reprocessed device is of the same quality, says Deborah Visconi, director of operations for Morristown Medical Center.
“The physicians are concerned it's not the same quality,” she says.
However, others say that accountable care may bring the views of physicians and supply-chain executives more in line with each other.
“If they get together and they're working together in accountable care organization-type settings, where your incentives are aligned, then some of those barriers about preference and choice start to break down,” Deloitte's Kreder says.
Nearly 40% of respondents say participation in an ACO has or will increase collaborative efforts with suppliers and vendors.
Rising concern about supply costs has also carried over to how providers view and use their GPOs.
“I think GPOs work hard at getting the best pricing they can,” Emmons says. “They can do better, though. We all want better pricing.”