Supply Chain Risk Management in Healthcare:
Being from a Healthcare background, I want to explore, how the supply chain leaders are currently facing the challenges in healthcare in the real world with the Supply Chain Risk Management System.
How in healthcare Supply Chain Risk Management Plays a key role in Decision Making:
Here, I have been broadly focused in Healthcare. How the supply chain generally refers to the resources needed to deliver goods or services to a consumer. In healthcare, managing the supply chain is typically a very complex and fragmented process. Healthcare supply chain management involves obtaining resources, managing supplies, and delivering goods and services to providers and patients. To complete the process, physical
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The organization ensures that providers are not left without essential medical products and patients have access to potentially life-saving tools.
Another aspect of healthcare supply chain management involves the participation of regulatory agencies, such as the Federal Drug Administration, and healthcare payers, including Medicare and private health insurance companies. Regulatory agencies and payers determine if a medical resource is fit for consumer use and whether providers will be reimbursed for using it on specific patients.
Current Supply Chain Challenges in Healthcare:
Healthcare supply chain is the holistic flow of relationships between suppliers and customers is about efficiently delivering low-cost care as goods and supplies, such as a pair of doctor's gloves, move from point of purchase to point of use.
A major part of hospital decision makers believes their hospital supply chain is functioning at maximum efficiency. But, many of these hospitals are not implementing the appropriate supply chain management strategies, even as budgets get gobbled up and mergers and acquisitions
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Different stages in the supply chain flow may be focused on their own goal. Providers may want to use a specific product because they were trained with it, whereas hospital executives aim to purchase the most affordable quality items.
Since supply chain goals are not always aligned with an organization, the healthcare supply chain management process can be inefficient and fragmented. Healthcare organizations must take into account numerous requests and viewpoints to settle on specific product budgets.
Patients also have a voice in the healthcare supply chain management process. Healthcare organizations may be able to regularly order the correct sizes of gloves and keep them stocked, but some patients may need more customized medical products, such as latex-free options, depending on their health status.
Likewise, providers may prefer a specific brand or type of medical product, which could lead to cost concerns.
Healthcare providers have a weak sense of critical thinking of what products they need? Expensive inventory is being ordered excessively. Pacemakers, defibrillators, and catheters are merely collecting dust instead of being put to good use in an operating
The medical supplies that is sourced by Kaiser Permanente headquarters is handled by an governmental agency DME (Durable Medical Equipment) department which handles equipment and supplies that are for repeated use and it may also provide crutches, oxygen equipment, wheelchairs or blood testing strips for diabetics. The rest of the supplies are handled locally by hospitals. Clinical engineering department is responsible for handling the medical supply inventory. They can distinguish which equipment needs to be included in the inventory after following guidelines of some government
Due to the increasing financial implications, patient satisfaction has become a growing priority for health care organizations, as well as transitioning the health care organization’s philosophy about the delivery of health care (Murphy, 2014). This CMS value based purchasing initiative has created a paradigm shift in health care in which leaders and clinicians must focus on patient centered care and the patient experience which ultimately will result in better outcomes. Leaders and clinicians alike must be committed to the patient satisfaction. As leaders within the organization, these groups must be role models and lead by example for front-line staff. Ultimately, if patients are satisfied, they are more likely to be compliant with their treatment plans and continue to seek follow up care with their health care provider, which will result in decreased lengths of stay, decreased readmissions, increased referrals and decreased costs (Murphy, 2014). One strategy employed by health care leaders to capture the patient experience, is purp...
In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
Pharmacy Service Improvement at CVS (A) Case Study Stacy V. Cookley American University Problem: Dissatisfied consumer experience, due to issues with prescription fulfillment. Solution: 1) Drop-off • Constantly Monitor Station • Ensure technician is always available 2) Data Entry • Enter and verity data while customer is present • Technicians will convey any conflict in the third party payment • Drug Utilization Review (DUR) 3) Insurance Check • Gather and check data while customer is present 4)
Summary The article by Toussaint, & Berry was well written, examining those things that make lean management work in the healthcare setting. Furthermore, the article listed six core principles of a lean transformation that are essential to establishing an exceptional organization if implemented correctly. Those core principles are the attitude of continuous improvement, value creation, the unity of purpose, respect for front-line workers, visual tracking, and flexible regimentation. Furthermore, the article uses examples and results from different clinics and hospitals to show that lean management in healthcare increases quality and lowers the total costs in an organization, resulting in pleased staff and patients.
Healthcare Logistics is an area where costs can be lowered and efficiency gained in order to save money. A lot of the processes in Healthcare Supply Chain is inefficient creating problems with ordering errors, a lack of products on hand to create patients clinicians receiving incorrect product, and expired inventory. It also creates a lot of rework which lowers productivity and ordering. “Lack of data standardization was the most common obstacle to achieving supply chain excellence” according to the article causing higher costs for the supply chain. “Recently, Becton, Dickinson and Company and Resource Optimization & Innovation (ROi) collaborated on the first known instance in the United States of GS1 standards, including bar codes, being integrated across the medical device supply chain.
The use of supplies is a problem because we are spending too much money on them. We are a world-renowned hospital with very high-end robots and equipment. Therefore, our surgeons demand the best and the higher valued machines and supplies. Cost and quality need to be considered. We do not want the quality of care for the patients to be jeopardized because of inadequate planning in regards to low quality supplies (Sullivan, 2009).
Despite the adumbrated achievement, the supply chain management strategies employed by Walmart have experienced some challenges. The first one is the evolution of the standards of the technologies that are used globally. These are always becoming advanced, and the company has to keep up with them to be able to stay ahead of the pack.
reimbursement determinations. As a result, the camaraderie among physicians has developed into a more aggressive approach to impede competition (Shi & Singh, 2012). Little information is shared with patients in regards to procedures or disease control. The subjects are forced to rely on the internet for enlightenment on the scope of their illnesses (Shi & Singh, 2012). Furthermore, the U.S. health care system fails to provide adequate knowledge on billing strategies for operations and other medical practices. The cost in a free system is based on supply and demand and is known in advance of hospital admission (Shi & Singh, 2012). The need for new technology is another characteristic that is of interest when considering the health care system. Technology is often v...
Today’s healthcare environment is facing tremendous challenges in order to ensure safe, quality care, while simultaneously providing affordable care that is still able to produce revenue. With continuously escalating healthcare demands emerging from the population, healthcare providers and professionals have no choice but to accept these challenges and put forth the best possible approach to meet these demands involving patient care. New ideas for managing tests, medications, procedures, orders and delivery of care must continuously be considered by the healthcare organizations to ensure that the care they provide is appropriate, safe, efficient and cost effective. Periodically providers run into trouble by ordering unnecessary or duplicated tests and/or medication errors, which cause delays in care and have the potential of diminishing patient outcome. In these cases, an ongoing workflow process is essential to ensure that patients receive the best possible care and generate greater outcomes for both patient and the provider.
Thanks to their knowledge together with years of scientific research and trials, suppliers can help. For example, from monitoring congestive-heart-failure patients to helping healthcare providers manage chronic illnesses like diabetes and heart failure, such patient-centric relationships with suppliers will facilitate appropriate use of resources, encourage quality patient care and bring accountability to the process. Though suppliers today give rebate checks based on bulk purchase by providers, the future may see the reverse where providers issue checks to their suppliers depending on higher levels of performance of delivered
• This article talks about how healthcare develop different strategies to improve efficiency, quality of patient care and safety. Healthcare supply chain helps supplier of pharmaceutical products take ingredient from the manufactures and to the health providers. • Author talks about a research which is quantified by developing risk management strategies that can help in serving health emergencies and also help to treat the adverse results if any interruption occurred in the supply chain of a hospital. Risk management is adapted by all the healthcare institutions in order to provide good supply chain of the pharmaceutical products. With less supply of products, shortage of important drugs or vaccination have adverse effect on the hospital or healthcare.
Thus a management method that specifically meets your wants of a transforming organization is extremely much essential in addition to supply chain management requires businesses to examine every process in his or her supply chain and identify areas which have been using unnecessary resources that are measured in dollars, time or recyclables. This will improve the company's competitiveness in addition to improve the company's general profitability.
Operations Management in Health Care Operations management is the organizing and controlling of the fundamental business activity of providing goods and services to customers (Encarta, 2005). In the healthcare industry, operations management generally focuses on providing a healthcare service to patients. An organization has three basic functional areas, and these are: finance, marketing, and operations (Operations Management, 2004, p.4). Since operations is one of the three basic functions of an organization, it holds a strong significance in the healthcare industry. The contents of this paper will explain what operations management means to the writer, and why operations management is important to a healthcare organization.
Transportation Central equipment stores rather than ward based stores for commonly used items. Overprocessing: Asking patients for the same information several times. Inventory Waiting Lists -. Excess stock in stockrooms.