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Designing the Standard for a Healthy Supply Chain
(9/13/2005) Ascet Volume 7
By Allison P. Corry, M.H.A., M.B.A., Sisters of Mercy Health System
Gerald R. Ledlow, Ph.D., M.H.A., C.H.E., Sisters of Mercy Health System
Steve Shockley, Sisters of Mercy Health System
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A consolidated, standardized supply chain streamlines processes, cuts costs and supports improvements in patient safety by collaboratively designing clinical and revenue work processes.


There is growing recognition in healthcare of value derived from effective supply chain management. Considering that supply chain operations constitute 30 to 40 percent of healthcare costs – second only to personnel costs – leaders and managers must become competent to effectively steward improvement efforts that focus on value. Decisions of consolidation, gaining economies of scope and scale, versus outsourcing, integration with other functional areas versus stand-alone operations, timing and tempo of change become vital to healthcare organizations and systems today. Both adaptive or process and technical change must be considered. Coupling process redesign with technical improvements adds to greater benefit as long as the changes are complementary.


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