Optimizing healthcare supply costs—from the physician’s perspective

McKinsey June 12, 2025
William Weinstein, with Borja Carol Galceran, Sabriya Hasmani, and Simon Kerr

Clinical supply costs make up a large share of a health system’s total cost base. As healthcare leaders look to optimize clinical supply spend, physician perspectives can unlock potential value.

Health systems in the United States have had to contend with continuous economic pressures, including inflation, high labor costs, shifts in sites of care away from acute settings, and downward pressure on reimbursement. To adapt to these factors, health system leaders are pursuing multifaceted approaches to reduce costs and improve revenues without compromising quality of care.

External spend for supplies, pharmacy, and purchased services makes up 30 to 40 percent of a typical health system’s total cost base, and optimizing clinical supplies spend is a critical method to consider to...

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