That amounts to a 17.7% average supply chain expense reduction, or up to $11 million a year per hospital, according to a Navigant Consulting analysis of 2,300 hospitals that compared the top-tier hospitals' supply cost per adjusted patient day with their peers. That is equivalent to the annual salaries of 160 registered nurses or 42 primary care physicians, or the cost of building two outpatient surgery centers.
Hospitals have an unrealized $25.4 billion supply chain opportunity
The highest-performing hospitals engage data-driven physicians to identify and standardize the use of physician-preference items and medications that produce clinically equivalent outcomes at a lower cost, according to the report. They also hire quality staff to analyze data that tie costs to patient outcomes.
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