Wednesday, March 31, 2010

Rigorous Supply Chain Practices are not as Common in Healthcare – Why?

In a session at the GHX 2010 Supply Chain Summit, Brent Johnson, VP Supply Chain, Intermountain Healthcare said that rigorous supply chain practices are not being used in healthcare. Why?

Because of their not-for-profit presence that reduces the focus on running an efficient business; because of industry dependence upon GPOs & distributors for contract and supply chain management; lack of supply chain talent – pay & strategy opportunities are lacking; and hospital executives haven’t viewed traditional Materials Management as strategic – leaving them in the basement versus part of the C-Suite where they are in other industries.

Is this the same problem that your healthcare organizations are having?