Sixty-four percent of health systems say lowering operating costs is a top challenge, according to HIDA’s 2018 Provider Survey: Managing Growth. When it comes to cost cutting, the idea that you need to “cut out the middle man” to achieve savings is common, but eliminating a distributor would risk bringing a health system’s smooth operations to a halt.
Survey respondents identified a number of ways that their distributor partners make their lives easier and keep things running seamlessly. These include:
- Offering alternate delivery programs, such as just-in-time or low unit of measure,
- Providing a wide selection of goods from a variety of different manufacturers,
- Offering data and analytical reporting.
When trying to control operating costs, organizations commonly look for ways they can do what they are doing now with fewer inputs, but highly successful companies focus on ways they can achieve more with current inputs.
Many survey respondents indicate they are planning to expand their facilities or add new ones. Achieving this growth while keeping operating costs under control can benefit from the services and experience that distributors offer.
For more, check out our recent infographic based on the survey: Health Systems Expand Their Community Footprint.