The Importance of Primary Care Supply Chain Management
August 29, 2018
Managing the supply chain can be a very complex process in any healthcare environment, and especially so for the Primary Care Provider.
Primary care supply chain management involves gathering resources, managing supplies, and making sure providers and patients receive their goods and services. Physical assets and information about products and services go through different stakeholders, manufacturers, hospitals, and insurance companies. By maintaining efficient primary care supply chain management, hospitals can create different cost reducing opportunities throughout their organization. Supplies are a small portion of physician expenses, so supply chain products that save staff time can have a large impact on the entire budget.
Why Primary Care Supply Chain Management Is Important
Providers use items such as gloves, syringes, and prescription drugs to treat patients. Company workers involved in primary care supply chain management are responsible for managing inventory and making sure that the company has the proper materials to treat patients.
Mr. Vinod Ramchandra Jadhav, Chairman of Sava Group, explains, “The healthcare supply chain starts with the medical product manufacturer, who produces the items and sends them to a distribution center.” The healthcare organization stocks the inventory to make sure that providers are not left without important medical product. Regulatory agencies will decide if a medical resource is ready for customer use and if providers will receive reimbursement for using the tool on patients.
Primary Care Supply Chain Management Remains Complex
Healthcare supply chain management is different because every stakeholder is looking to protect their own interests. Providers may want to support a different product, while hospitals may simply want to use the most affordable products. Because supply chain goals may not always align with those of the entire organization, the healthcare supply chain management process can become inefficient.
Healthcare organizations can order products. However, some patients may need more customized products depending on their health. This can create cost concerns. “Misguided incentives and independent goals can hurt the flow of the entire supply chain,” states Mr. Vinod Ramchandra Jadhav.
How to Overcome These Challenges
Many healthcare organizations have found success with their supply chain management by using cost transparency. By paying attention to the price and data, healthcare organizations can keep track of inventory more efficiently and make more informed decisions in regards to pursuing contracts with manufacturers. Making sure that every hospital department is on the same page is important for achieving great primary care supply chain management. While organizations are focused on eliminating under-performing things, providers must collaborate to help reduce costs and increase performance.
About Vinod Ramchandra Jadhav: Mr. Vinod Ramchandra Jadhav is a first generation entrepreneur with a passion for business. In 2001, he began operating as a franchises owner of a “Medicine Shoppe International” where he learned the ropes of the pharmaceutical industry and got the experience he needed to apply his knowledge of supply chain management on a larger scale. In 2003, he started SAVA Group and has grown the company into an international powerhouse that has footprints in 35 countries around the world.