Maximizing Value in a Complex Purchasing Environment

Sponsored CONMED November 2023- The Journal of Healthcare Contracting

The talk of 2023 has been all about improving the bottom line in healthcare. Survey results published by AHRMM earlier this year, showed that 78% of supply chain respondents were seeking cost efficiency above all other priorities.1

The pressure to examine dollars spent has procurement leaders reconsidering purchasing decisions that were once easily rubber stamped. In the past, a status quo of “auto-renewing” existing arrangements may have felt sufficient. If surgical teams appeared satisfied with what they were using, and the investment was unquestioned previously, then it could be deemed “safe.”

But in today’s world, the increased level of fiduciary responsibility has procurement leaders reevaluating…

With this reconsideration has come an increase in capital trials, and they are bringing substantial value with them. Procurement leaders are also being more meticulous in their consideration process, digging deep into lifetime costs versus a comparison at face value. What they’re discovering is far more impactful than many would have initially imagined.

A 2021 publication in Health Management, Policy and Innovation titled “Value-Based Procurement Using Total Cost of Ownership: A Step-by-Step Financial Assessment of Orthopaedic-Powered Instrument Procurement,” compared two popular purchasing assessments – a Traditional Procurement Methodology and a Total Cost of Ownership approach.

Through a detailed assessment, the authors showcased how this modern Total Cost of Ownership approach can provide facilities with an excessive amount of savings, something that is critical in today’s healthcare environment.

There is an overemphasis on the importance of acquisition price. This is especially concerning as medical devices’ total lifetime costs to an organization often significantly exceed acquisition price.

By considering factors such as modularity, sterilization methods, and generational compatibility, you can better estimate the lifetime cost of your capital purchase and make a better, more informed decision for your organization.

Could this modern approach help uncover cost savings and maximize value at your facility? FIND OUT

1 Advancing Healthcare Through Supply Chain Excellence (2022, August 31). Three Key Areas for Health Care Supply Chain Success in 2023. AHRMM. Retrieved June 29, 2023, from

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