Strengthening HealthCare Supply Chain through Data Analytics

Strengthening HealthCare Supply Chain through Data Analytics

Healthcare Tech Outlook | Friday, November 30, 2018

The requirement of data analytics to enhance decision-making is still a pivotal topic for researchers in the healthcare supply chain. Deployment of a supply chain in the healthcare sector has gained tremendous advantages concerning spend visibility, cost-saving operation, and enhanced standardization and optimization.  A recent survey conducted by GHX revealed that the supply chain represents over 30 percent of the hospital operation cost. Furthermore, through GHX, certain key aspects have been ascertained for the betterment of the healthcare industry. GHX predicts that over 59 percent of supply chain leaders prefer data and analytics for effective decision-making; 53 percent believe that data standardization can be a solution for analyzing the collected data. 47 percent are dependent on contract optimization, and 29 percent prefer non-labor spend broader management for data analysis.

Supply chain holds the key for critical quality data analytics that provides insights into the healthcare business process and converts into a meaningful use of information through data analytics. This critical data comprises with cost, the quality, and the service provided in healthcare. In order to identify critical factors in an efficient manner, certain healthcare supply chain initiatives have been identified and deployed in the year 2018. Few of them are enhanced procurement and inventory controls to increase the supply chain process through cross-collaboration, standardization across the system has led to improvements in cost, quality, and processing. Clinical system integration and contracting have helped to concentrate on several procedural areas such as automation and new committed compliance contract models.

Implementation of standardization and contract management systems are given high preference in the list of healthcare supply chain priority. Healthcare respondents also agree with it as the top initiatives for the year 2017.  While healthcare through supply chain provides a higher range of flexibility, the amount spent will be costlier compared to standard treatment. Following the survey done by National Academy of Medicine report in the year 2012, over 765 billion dollars will add up as medical surplus every year, and this issue has not been completely resolved till date.

This medical surplus can be minimized by associating supply standardization to the medical services and deploying data analytics during the analysis. The data-driven supply chain can be a future to optimize the supply chain in medical analytics, and “key to value measurement,” which defines the quality and cost will be an essential metric for evaluating the overall financial performance in the healthcare supply chain.

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