Healthcare Supply Chain: Incentive and Value-Based Purchasing

Paul Kreder, Principal, and Carolyn Howard, Specialist Leader, Deloitte Consulting, LLP. The cost of supplies and services are going to continue to increase; industry resources even predict cost increases due to reform. The “ask” of Supply Chain has not changed however – reduce costs while getting us what we need to treat patients and run the facilities. Paul describes sourcing strategies, including incentives and value-based purchasing, to help organizations drive economic value while maintaining quality of goods and services. He also covers innovative and common sense approaches to negotiating with suppliers to drive value, and reviews new strategies to manage these new types of contracts so value does not erode over time. Included are: getting what you deserve from your GPO, getting the most out of tiered pricing, negotiating performance payments into services agreements, preferred sourcing models for today’s environment, managing these agreements and new terms, when should you commit volume to a supplier, and what technologies are available to help.