HealthLeaders Media November 3, 2021
Deborah Abrams Kaplan

With seven acute care hospitals, the Texas health system is using innovative ideas to trim its $1.4 billion supply chain budget, while increasing efficiency.

KEY TAKEAWAYS

– Use data to understand product costs for similar procedures; the doctors can then try to optimize their usage.

– Standardize products and renegotiate contracts for increased savings.

– Compare the cost to buy equipment like beds, versus renting.

– Work with local partners to manufacture critical products, to decrease reliance on other countries.

When David Peck arrived at Houston Methodist in 2018, there was no centralized purchasing. Each entity of the health system purchased its own goods. Peck, vice president of supply chain management, centralized all purchasing at the corporate level, delegating it...

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