integrated delivery network (IDNs) winLifted this from a recent tecsys blog as an explanation of part of their business because of the recent hospital network win..
Supply chain costs are now the second largest expense after payroll for hospital systems so there is ongoing need for the software that is combined with financial savings.
Tecsys is among the leaders in this business.
Healthcare Consolidated Service Centers Are a Proven Supply Chain Practice
There are more than 60 health systems in the U.S. that have implemented a consolidated service center and all have proven financial and return on investment (ROI) results. First, a CSC helps eliminate waste, such as GPO admin fees, distributor fees, rebates, and courier costs. Second, CSC procurement staff can achieve significant price point improvements and bulk buy savings by using industry-proven demand planning algorithms and having direct contracts with the manufacturers. Third, a CSC enables a health system to reduce other supply chain costs by bringing ancillary services in-house, such as central sterile, printing, pharmacy central fill operations, etc. Lastly, a CSC has the potential to create additional revenue streams by servicing home health and distributing to other entities outside their system.