December 21, 2023- If the pandemic ushered in the worst of times for hospital supply chain managers, would a decline in COVID-19 cases bring about the best of times? The reality is that hospitals are still being challenged by ongoing – and unabating – pressures, including raw material and pharmaceutical shortages, declining patient volumes and inflation.
That’s why strategically minded supply chain leaders are focused on resilience – due to the pandemic’s exposure of supply chain weakness – without losing sight of cost-saving opportunities.
Looking to group purchasing organizations (GPOs) for greater stability and savings makes sense as a first step. After all, a GPO, by definition, leverages the collective purchasing power of member hospitals to secure discounts on goods and services. However, the pandemic changed how hospitals evaluate GPOs, and the need to curb supply chain costs has altered how hospitals approach GPO partnerships.
Hospitals hit by supply shortages during the pandemic now tend to ask what a GPO delivers besides cost savings. Does the GPO have a diversified product contracting strategy, for example? Will the GPO go the extra mile to help hospitals of all sizes procure alternatively sourced supplies in times of scarcity?
Read more in the latest issue of The Journal of Healthcare Contracting.