Ray Collis

Taking Hospital Procurement To The Emergency Room

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There are a range of tried and tested principles that can be applied to turnaround hospital procurement.  Let’s examine them.


11 Strategies To Transform Hospital Procurement

1. A strategic approach to procurement that is driven by business goals and financial objectives, with support from the very top of the organization.

2. Analyse spend
, looking to see what categories are the biggest, or growing faster.  Where price variability and waste, for example, are the greatest problem.  This is the first step in implementing a new strategy.

3. Pooling of spend across different departments, sites and physicians
.  That includes Grouping Procurement Organizations and consortia.  That will enable leveraging bulk purchasing to negotiate better deals from suppliers.

4. Centralization of procurement
– where procurement decisions are coordinated centrally.   Put procurement between sales reps and physicians.

5. New Procedures and Processes –
Managing procurement inevitably means curtailing consultant or physician freedom to spend.  However it is important to balance the imposition of new rules and procedures with consultation and engagement.

6. Collaboration
 – a team based approach that engages with physicians and recognises their needs, while at the same time relentlessly pursuing savings and tackling waste.

The next 5 procurement strategies for the hospital sector are examined on the next page…

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