Hospitals losing on physician preference items
An analysis by Premier of data from 323 of its member hospitals shows they are losing $1.82 billion annually for 12 orthopedic and cardiac case categories because of Medicare reimbursement shortfalls. Lack of evidence-based outcomes data and the rising cost of physician preference items (PPIs) are also cited as reasons…
Does Medtronic action signal a shift?
Medtronic caused a stir in February 2011 when it canceled several contracts with the 2 largest group purchasing organizations (GPOs), Novation and Premier. The big device company ended 5 Novation contracts worth $2 billion covering spinal implants, neurosurgery power tools, bone graft materials, and cardiac rhythm management products plus a…
GPO purchasing of implants lags
On average, hospitals purchase 73% of their materials through group purchasing organizations (GPOs), with a wide range from 30% to 90%. But fewer—19% —purchase expensive orthopedic implants through GPO contracts, a new survey finds. Eugene S. Schneller, PhD, a business professor at Arizona State University, Tempe, and a supply chain…
ORs are moving to a more seamless supply chain system
Creating a more seamless system for OR inventory and charging often has been hampered by information systems that don't talk to each other, or don't talk easily. Humans in the OR and materials management may not talk much either. Gradually, these barriers are coming down, and hospitals are taking a…
Toward a more wired OR supply chain
Instrument tracking Currently use an instrument tracking system Yes 36% No 64% Electronic purchasing Percentage of transactions performed through electronic data interchange (EDI) Surgical supplies None 14% 1%-25% 18% 16%-50% 20% 51%-75% 28% >75% 21% Physician preference items None 34% 1%-25% 34% 16%-50% 14% 51%-75% 11% >75% 7% Source: Hositals…
A physician-led value analysis process
Getting physicians to align with the hospital in making decisions on high-ticket items like implants is challenging. Vendors cultivate close ties with physicians, who drive many of the decisions on these expensive devices. Hospitals can be left out until it's time to write the check. Memorial Medical Center, a community…
What can grocery stores teach about managing OR inventory?
When you go to the grocery store and buy Wheaties, the clerk scans the box. The scanner captures the purchase. Software adjusts the inventory and tells the store when it's time to reorder and restock The vendor makes sure boxes get back on the shelf. Supply chain articles Can OR…
Can OR inventory be like a grocery store?
When Dave Zimba wanted to improve the supply chain for Pittsburgh-based West Penn Allegheny Health System, he started by going to the grocery store. He observed what happened when he bought a can of tomatoes: The clerk scans the box, and the scanner captures the purchase. Software adjusts the inventory…
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