H-Source: Helping hospitals reduce waste:Interview Hospitals
H-Source: The company helping hospitals reduce supply chain waste
By Erin Dietsche
It’s not exactly shocking that the healthcare system accumulates waste. From wasted money to wasted time, the problem happens in health systems across the country. But wasted supplies are another issue — one that H-Source aims to solve.
The publicly traded company was founded by president Murray Walden, a former medical device rep.
In simplest terms, it offers a platform for hospitals to buy and sell healthcare products and medical equipment with each other. Hospitals do have to be members to utilize the H-Source marketplace, but membership is free.
In a recent phone interview, CEO John Kupice explained how the Spokane, Washington company’s platform works.
A hospital would reach out to H-Source, which would verify its identity. The company does not have an open network and therefore wants to ensure all transactions are happening between medical entities. Next, H-Source would assign the hospital a password and user ID, which it can use to sign in to its account. The hospital can then list products it doesn’t need, and create a wishlist of supplies it wants. When a system decides to buy something, all the delivery packaging is handled by medical personnel.
Kupice described it as “an Amazon meets LinkedIn platform” and said it’s easy for hospitals to use. “If you’ve done online shopping, you can use the platform,” he said.
H-Source charges buying hospitals a transaction fee. And after collecting payment for the supplies, H-Source pays the seller after taking out a commission fee.
Currently, Kupice said his company has more than 500 hospitals in 32 states on the platform. Through the H-Source marketplace, an organization can work with all these entities and order products from one hospital or 100 hospitals in the network.
The company’s clients range from large systems to small critical access hospitals. It serves ambulatory surgery centers and a few skilled nursing facilities as well. One of its latest customers is the Colorado Hospital Association.
Kupice believes his organization’s approach is critical to hospitals in today’s day and age. Health systems are seeing lower reimbursement rates coupled with high labor costs. The supply chain also makes up a hefty portion of the spend in hospitals.
“We are a platform that can help them reduce … costs,” he said.
H-Source isn’t the only entity putting a finger on the healthcare waste problem. Pinpoint Software is confronting the issue in a different way. Its Date Check Pro software assists hospitals with expiration date management. The DCP app tells employees which items in the supply room will expire prior to the next check date. If such items are still on the shelf, the app prompts them to take action.
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