Hospital Supplier Management Growth Opportunities

In general, the Supply Chain Management market industry has been gaining in popularity as a process that works. Progress in the supply chain marketplace is changing in that supply chain management as a field of work and study is gaining popularity. Twenty percent of ThomasNet North American Scholarship recipients are choosing supply chain management. The sector that has seen the most growth is in healthcare and specifically hospital supplier management. According to a report covered by Report Buyer, “Healthcare Supply Chain Management Market by Product, Delivery Mode & End User Global Forecast to 2019,” the healthcare-hospital market is expected grow at a compound annual growth rate (CAGR) of 8.3 percent from 2014 to 2019. It is expected to reach $13,814.00 million by 2019 from $9,276.5 million in 2014. The drive to reduce healthcare costs is the primary concern for the supplier management market. With the growing consolidation of hospitals in the U.S., there are more opportunities to implement a supply management system for  a more streamlined supply chain. Research by Lee Ann Jarousse for Hospitals and Health Networks, reveals that the renewed interest and growth in supply chain technology has gained awareness in upper levels of management. Enterprises are placing more focus on the solution and seeing significant savings. A well-run supply chain is much more efficient for hospital staff in terms of replenishment of resources. In terms of expenses, hospital supply chains normally account for 30-40 percent of a hospital’s expenses. However, supply chain is more than just goods. There are many other costs that go into the budget which can grow to 50 percent of costs when you include engineering, pharmacy, the cost of procurement and supplies, including  food service.  Then there is storage and the time it takes nurses to take inventory and input the data into the supply chain process. Deborah Sprindzunas, executive director of the Association for Healthcare Resource & Materials Management, predicts that in 2020, medical supplies will surpass labor as the biggest expense for hospitals and health systems. If you would like more information about how we can help you with your hospital supplier management, please contact us.

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