U.S. hospitals could cut billions of additional dollars from their supply chain budgets without affecting quality, a recent Navigant analysis suggests. According to the study, hospitals could reduce their supply expenses by an average of 18 percent. This equates to an annual cumulative savings of $23 billion or $10 million per hospital. The data also revealed the following findings:
- Lower supply spending isn’t negatively impacting quality, with hospital-acquired condition and value-based purchasing scores slightly better at facilities with more efficient supply expenditures.
- Savings opportunities exist for all types of hospitals and are relatively equal across characteristics such as hospital size, regional location, and whether facilities are urban or rural, for-profit or not-for-profit, or system-based or standalone.