As the health industry looks toward a more value-based approach to health care, it’s key that it dedicates more resources to ensure an air-tight supply chain management strategy, according to a recent article published on RevCycleIntelligence.
According to the report, one-third of hospital decision makers are confident in their current supply chain, saying it’s working at peak efficiency, but the remaining two-thirds say their stuck between fee-for-service and value-based reimbursement.
Supply chain costs, which total about $5 billion, are posing significant obstacles, however.
“Risk sharing, value-based reimbursement, exchanges, and consumers with new insurance are driving hospitals to be conservative with cash, to go after every opportunity to free capital, and to look at cash philosophy in a way they’ve never looked at it before,” Edifecs Associate Vice President of Product Strategy Ruby Raley said. “It’s a game changing time now.”