Based on answers from GHX’s Top 50 organizations, predictive analytics emerged as vital to the future of healthcare supply chains.
Predictive analytics and the use of data for informed decision making top the opportunities in 2017 identified by some of the leading supply chain provider organizations in North America. The results are based on a survey conducted by Global Healthcare Exchange (GHX) with its Best 50 provider organizations on priorities and outcomes for the healthcare supply chain in 2017.
The survey also revealed that top performing supply chain organizations will look to improve price accuracy between supplier and provider partners as well as standardize business processes and data across the organization. The following areas were identified as among the top healthcare supply chain initiatives planned for 2017:
• Standardization: for physician preference items (PPI) and across all clinical areas; reduction in manual processes and paper transactions; process excellence for operational management; of value analysis process to increase clinical value-add for patient outcomes;
• Contract Management: implementation of contract management system; improve contract compliance; higher contract penetration;
• Data Management and Analysis: better analysis of supply chain costs; master data management; leverage data and analytics; data accuracy;
• Optimization and Cost Reduction: ERP functionality; supply cost reduction; elimination of product proliferation and reduce warehouse items; reduction of special order.
“Healthcare’s supply chain continues to be at a pivotal juncture, taking increased advantage of advanced technology to deliver affordable value-based care by accelerating efficiencies and improving access to quality data for decision making,” said Bruce Johnson, president and CEO of GHX. “Improving operational performance and driving down costs through supply chain automation is one of our top priorities. The focus today on accurate data is central to our mission. The linkage between data on products used in patient care as recorded in electronic health records with accurate and comprehensive information about those products in item masters is key to solving the cost/quality equation.”
Predictive Analytics to Emerge
GHX asked these Best 50 leaders in what areas supply chain would be critical to the future of healthcare. Predictive analytics was the leading answer followed by optimizing value-based reimbursement and integration following mergers and acquisitions.
Quality data is the foundation for all analytics activities. The supply chain is a valuable source of data on healthcare supply chain spending necessary for evaluation of outcomes and for decision making for savings initiatives. Supply chain leaders anticipate the use of this information becoming an important contributor to value (cost and quality) measurement as an important metric for assessing overall financial performance.
As the strategic importance of the supply chain grows, so does the role of the supply chain executive. According to the survey, supply chain leaders will increasingly work hand in hand with clinical peers to help lower costs and improve patient care. In addition, the supply chain team plays a more strategic role in provider organizations, tackling a variety of critical healthcare issues (e.g., value based care, improving clinical performance, reducing risk, EHRs, etc.).
GHX Best 50
To select the Best 50, GHX evaluates the performance of more than 4,000 hospitals in the U.S. and Canada currently connected to the GHX electronic trading exchange. Annually, GHX identifies the 50 healthcare provider organizations that score highest in automation of transactions with their trading partners, Exchange utilization and trading partner connections during the calendar year. The 2016 Best 50 will be announced in February 2017. To view the Best 50 criteria, visit GHX’s website.