It’s common knowledge that supplies often comprise 25 percent or more of a typical hospital budget, creating the second largest spending category. Compared to larger institutions, community hospitals with less buying clout might see an even greater percentage going to supplies.

Therefore, community hospital CEO and CFO attention is paramount for optimal supply chain performance including potential savings. To make educated decisions and positive changes, these executives are advised to compare their organization’s supply chain to other similar facilities while educating and overseeing their materials management leaders.

Take a Close Look

Do you understand supply chain operations?

Engaged executives must understand supply chain operations well enough to know why changes will drive organizational efficiency and cost savings.

Does your material management executive have a strong supply chain background and education?

The supply chain is more complex than ever, and supply chain leaders need formal education, significant experience, or both. Add a seat at your executive table for your supply chain leader for both short- and long-term candid discussions and strategic decision-making.

What is your hospital’s current GPO relationship?

It’s important for senior leaders to understand the purchasing process at a high level. If you’re working with several group purchasing organizations, find out how much you could save by working with one preferred provider. Ask what contracts are in place, how often they are reviewed and what selection criteria are used. Also find out if the prices your facility pays are competitive and purchased through established contracts.

Do you set and review metrics and benchmarking so that all hospital leaders understand their role in optimizing the supply chain?

Conduct external benchmarking to understand where you stand. Otherwise, it’s impossible to set goals for improvement.

Do you stay current on supply chain technology enhancements?

Stay current on the latest supply chain practices, technologies and trends which also helps to evaluate the business case for new technology.

“CHC Supply Trust helps to extend the value we receive. At our organization, supply savings can be used to support upgrades, new equipment, or investments we could not otherwise consider. That means a lot for a hospital like ours.”

Lee Boles, CEO, Hunt Regional Healthcare, Greenville, Texas

Five ways executives improve their supply chain

1. Hire the best supply chain professionals available.
2. Get personally educated and involved.
3. Reward supply chain behavior that benefits the entire company.
4. Use external benchmarking data.
5. Get advice from outside experts.

“Supply savings have been phenomenal with CHC Supply Trust, more than I ever would have expected, 10% even on exact same items. On items we converted, we saw even greater savings. On purchased services, 50% up to 70% — outlandish savings that you would not think are possible.”

David Morfeld Director of Materials and Contract Management, Faith Regional Health Services, Norfolk, Nebraska

Trusted Partners

Partnering with CHC Supply Trust brings practical solutions to enhance efficiencies, improve quality, and strengthen financial stability. Our recommendations are tried and tested in our own hospitals. CHC Supply Trust partners with HealthTrust Performance Group, the industry’s only national, committed model GPO, to offer competitive pricing for community hospitals. CHC Supply Trust offers Purchased Services expense management powered by Valify Solutions Group, including comparing contracts and costs with similar hospitals and vendors.

Find Out How Much Your Hospital Can Save

CHC offers a Complimentary Supply Spend Analysis that includes comparing prices on items a hospital already purchases to CHC Supply Trust pricing for the exact same items. This analysis shows a conservative estimate of how much members can save with CHC Supply Trust before signing on.

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