The numbers are, quite frankly, staggering. Your average OR is often the largest generator of revenue, the largest consumer of supply costs, and the biggest generator of waste. On average, operating rooms produce more than 2,000 tons of waste per day. That’s 400,000 pounds of unused and/or wasted supplies, costing as much as 13% of the total surgical cost. And while, on average, the hospital OR generates up to 70% of revenue, it also accounts for 40% of total hospital expenses. Any supply chain executive worth their salt will know that gaining control over this narrow but oh-so-important part of the supply chain will benefit the facility or health system in several ways.
In addition to thousands of pounds of generated waste, not having complete control over this service line can lead to higher costs due to overtime or inefficient staffing, multiple locations for supplies, or an excess of supplies. You may also see surgeon dissatisfaction attributed to late starts or not having the supplies needed, inaccurate preference cards and case picking, and disorganized storerooms.
Some of these problems may not sound familiar to you. Perhaps you’re merely tired of complex contracts, items on backorder, unexpected price hikes…quite simply, poor service that over-complicates the supply chain and costs your hospital or system money, in addition to all the headaches.
How to optimize the supply chain
Ultimately, as well as impacting the supply chain, all of these issues risk influencing the delivery of optimal patient care. Every facility is facing pressure to reduce expenditures without affecting the quality of care—so where do you start? How do you transform the OR supply chain so that it’s as technologically advanced as the OR itself?
A specialty distributor of suture, endomechanical, mesh, and energy products has serviced Hospitals and IDNs for almost 20 years. Today, IDNs and hospitals must maximize savings with improved efficiency and optimized inventory all while demanding one-day integration. This can be achieved with low mark-ups, world-class customer service, average savings of 20% and a 99.4% next-day, just-in-time fill rate for over 6,000 name brand products. Expecting a national full line prime vendor to deliver this performance while ensuring zero supply interruptions is simply an unreasonable expectation.
Cutting costs by cutting waste
Mercy Hospital & Medical Center in Chicago, IL, a Suture Express customer since 2013, cut its suture and endomechanical carrying costs nearly in half with the help of Suture Express’ high next-day fill rates. The hospital, which sees about 25-30 surgeries each week, was also able to eliminate stockpiling, which resulted in a double-digit decrease in wasted or obsolete suture stock. Supply chain efficiency also improved after Mercy was able to eliminate the 2-3 hours per day that it spent stocking and counting suture and endomechanical inventory. Overall, by taking command of this narrow service line, Mercy was able to decrease its annual spend on suture and endomechanical supplies by 5-10%.
To learn what OR supply optimization and waste reduction would look like for your hospital or IDN, contact sales or call 877-790-1873.