Inside UC Health’s successful model for engaging clinicians early to balance financial stewardship with clinical quality.
At Ohio-based UC Health, LLC, supply chain is a strategic partner in delivering high-quality patient care even as the healthcare supply market has become increasingly volatile due to inflation, shortages, supplier exits and service‑level instability. Against this backdrop, UC Health’s supply chain team partnered closely with clinicians and system leadership to generate $30 million in savings over a two-year period to improve market benchmark and strengthen resilience – without compromising patient quality.
According to Derrick Billups, MSHA, CMRP, FACHE, Vice President of Supply Chain and Support Services, that success started with intentionally building the right team and culture.
“Key team member qualities include leadership, adaptability, analytical thinking, strong communication skills, and the ability to work effectively across both clinical and operational functions,” Billups said. “In today’s healthcare environment, supply chain professionals must thrive in a fast-paced environment and with cross functional teams – partnering with clinicians, operations and finance to align priorities and deliver results.”
Those capabilities became even more critical as UC Health pursued aggressive savings targets in parallel with a widespread supply market instability. Achieving $30 million in savings over a two-year period required a high number of product conversions across multiple categories.
Billups emphasized that accurate data and communication were non‑negotiable. “Team members must have access to accurate data and interpret data to make informed decisions to build trust with clinicians and executives,” he said. “That trust is what allows supply decisions to happen at scale without disrupting care.”
Maintaining alignment during cost pressure or disruption requires a strong sense of purpose. “We emphasize transparency and purpose as the foundation of our team culture,” Billups said. “Behind every supply decision or pallet delivery is a patient.”
That perspective helps guide priorities. “That’s why we align every action with supporting providers and improving care,” he said. “To maintain momentum, we celebrate incremental wins and share progress toward long-term goals, ensuring the bigger picture remains clear – even during periods of cost pressure or supply disruption.”
Firm foundations
UC Health’s collaborative culture has driven measurable results. A great example is the organization’s recent approach to supply optimization and standardization, Billups said. “We built a culture of collaboration where clinicians are engaged throughout the process, ensuring decisions reflect both clinical priorities and operational goals.”
A key component is the organization’s Clinical Review Committees (CRC), composed of physicians who serve as primary users in each category (example: Cardiology – drug eluting stents). “We start with data and walk them through supply recommendations starting with clinical quality, then opportunities related to supplier mix and standardization that would improve cost efficiency without affecting patient care,” said Kristen Crawford, Director of Strategic Sourcing.
She added that the CRC process is designed for speed and engagement. “We designed the CRC structure to wrap up in four to six weeks from start to finish, which helped us move quickly while still keeping clinicians closely involved,” Crawford said. Increased physician involvement has strengthened buy-in and decision-making.
During this period, UC Health also reduced its Vizient Price Competitive Index by 10 points, reaching best-in-class performance. “We focused on four strategic levers,” Billups said, including clinician partnerships, contract optimization, benchmarking, and external partnerships with Vizient and Captis. Standardization of high-dollar supplies played a central role. “By narrowing product and supplier options, we could offer suppliers more committed volume,” Crawford said. “In return, we earned better pricing and higher tier positions.” That commitment also helped UC Health maintain supply continuity during periods of market disruption, when suppliers prioritized consistent, consolidated partners.
Value beyond price
At UC Health, cost reduction only works if quality is protected.
“Clinical quality and patient safety are absolutely non‑negotiable,” Billups said. “Every decision begins with that commitment.”
The organization applies a disciplined value analysis framework, evaluating every product request across three dimensions: clinical evidence, patient safety and financial impact. The structure ensures that cost savings never come at the expense of care delivery.
Collaboration with clinicians is essential. “This begins with partnering and listening,” Billups said. “We engage clinicians early in the decision-making process to understand their clinical priorities and challenges.”
For UC Health, vendor evaluation goes beyond cost. “Price is certainly important, but supply reliability matters just as much,” said Crawford. “Great pricing doesn’t help if the product is unavailable from the manufacturer or distributor. Vendors who demonstrate consistent availability and dependable delivery bring far more total value than those focused on price alone.”
This broader definition of value has guided collaboration with clinical teams. Early partnerships with service lines such as orthopedics and cardiology helped align sourcing strategy with clinical needs while improving costs.
Leading through uncertainty
Recent years have tested hospitals all across the country, not just at UC Health, with supply chain market disruptions and resilience. “Supply disruptions and tariffs have been two of the most significant challenges we have faced,” Billups said. UC Health is evolving how it measures resilience. The organization identified supply “showstoppers” – critical supplies that could halt operations – and ensures clinically validated alternatives are in place. In addition, UC Health responded by strengthening distributor relationships, implementing formal resilience plans and dedicating a full‑time role to manage supply disruptions – a decision that proved critical as activity increased with product allocations and clinically approved product substitutes.
Coordination across departments is critical. “Keeping everything stable during major supply disruptions comes down to coordination and clear communication,” said Zack Gapinski, Director of Clinical Integration. For UC Health, that meant creating clear escalation paths, aligning nursing leadership with supply chain strategy, and ensuring clinical teams had advanced visibility into substitutions or allocations. “When disruption hits, speed and clarity matter,” Gapinski added. “Everyone needs to understand not just what is changing, but why it’s changing and how it affects patient care.”
That coordination relied heavily on accurate, reliable data – particularly at the foundational level of supply systems. Accurate data systems also play a key role. “If the item master isn’t accurate, nothing downstream runs the way it should,” said Deanna Inabnitt, Director of Purchasing. “Keeping the item master clean and up to date is one important contribution we made.”
Inabnitt emphasized that item master integrity became even more important during periods of high disruption, when substitute products, emergency sourcing or rapid conversions were required. “When we had to pivot quickly, we needed confidence that item attributes, units of measure, clinical approvals and supplier information were correct,” she said. “That accuracy is what allowed clinical teams to trust the products arriving at the bedside and operational teams to execute without delays.” Resilience is now embedded in strategy. “We have embedded supply resilience as a core component of our strategy,” Billups said, including supplier partnerships and data-driven forecasting.
When it comes to building a resilient supply chain team, Gapinski emphasized mindset and adaptability as critical differentiators. “The people who excel are naturally curious and comfortable challenging old assumptions in a constructive way,” he said. In an environment defined by constant change, those traits enable teams to question the status quo, respond quickly to disruptions and collaborate effectively. Clear communication and strong problem‑solving skills, he added, are essential for navigating uncertainty and maintaining stability across the organization. Maintaining alignment requires consistent communication and recognition of progress. “Shining a light on successful conversions, savings, or operational improvements reminds everyone that their work truly matters,” he said.
For Luigi Oliverio, Director of Materials Management, the success of UC Health’s savings and conversion efforts ultimately hinged on execution discipline at the front line – where strategy meets day‑to‑day operations. While sourcing strategies and clinical approvals guide decision‑making, Oliverio emphasized that materials management ensures those decisions are carried out reliably across care settings.
He noted that large‑scale product conversions or supply disruptions must not result in disruption at the bedside. “Our responsibility was to make sure product substitutions or conversions are seamless – right product, right location, right timing,” Oliverio said. “This requires tight coordination with supply chain strategy, purchasing, nursing leadership, and clinical teams.” Through this coordination, materials management helped translate system‑level initiatives into consistent, uninterrupted care delivery.
Anticipating 2026 trends
As healthcare organizations move further into 2026, supply chain leaders are keeping a close eye on rising costs and economic pressures that could impact patient care. Derrick emphasized that while reimbursements remain largely flat, expenses across the healthcare system continue to climb.
“Costs are going up – technology, care delivery, human resources, and product pricing,” Billups said. “For supply chain, that means we need to mitigate those increases wherever possible to ensure our providers and patients still have what they need to meet outcomes.”
Healthcare supply chains are also navigating inflationary pressures layered on top of broader economic and geopolitical challenges. Tariffs, market disruptions, and potential price escalations all add complexity to procurement and inventory planning. “It’s about making sure we have the right product in the right place at the right time, while also managing market disruptions and inflation,” Billups explained.
The stakes are high: hospitals must balance rising supply costs against a healthcare system that has limited appetite – or ability – to absorb additional expenses. “Controlling inflationary increases in supplies and technology is critical in today’s environment of flat or declining reimbursements,” Billups said.