Supplies are second only to labor in health system expenses, and expanding care delivery adds costly logistical challenges. So it’s critical to align your supply chain when considering alternative care sites.
For the non-acute space specifically, there are a unique set of workforce and technological challenges—like procure-to-pay (P2P) silos, manual and paper-based processes and costly, complex supply chains. When acquiring any care location, you inherit the existing processes and technologies.
Without a comprehensive expansion strategy in place, you could take on inefficiencies, excess costs, revenue leakage and more. You run the risk of negating the potential financial benefits of providing lower lower-cost care outside the hospital.
Yes, better supply chain management can boost margins and improve finances.2 But it’s important to note that there's even more more at stake here—supply chain weaknesses can also impact clinical care and patient outcomes.