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CONTENTS JUNE 2026

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Feature

Aligning Cost, Care and Collaboration

www.jhconline.com

Editorial Staff Editor Graham Garrison ggarrison@sharemovingmedia.com

Senior Writer and Columnist R. Dana Barlow

Inside UC Health’s successful model for engaging clinicians early to balance financial stewardship with clinical quality.

rickdanabarlow@wingfootmedia.biz

Editor-in-Chief, Dail-eNews Jenna Hughes jhughes@sharemovingmedia.com

 pg 18

Content Creator Pete Mercer pmercer@sharemovingmedia.com

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Publisher John Pritchard jpritchard@sharemovingmedia.com

Circulation Laura Gantert lgantert@sharemovingmedia.com

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The Journal of Healthcare Contracting | June 2026

2 Publisher’s Letter: Strengthening the Chain: Inside Healthcare’s Push for Resilience, Collaboration and Innovation 4 Central to Care

How Saint Francis Health System leverages enterprise-wide coordination and data-driven insights to improve purchasing, streamline operations, and free hospital space for clinical care.

6 The Next Generation Supply Chain

Premier’s Bruce Radcliff and David Reitzel on why AI and partnership models are transforming healthcare.

10 Closing Montana’s Healthcare Supply Gap

New Intermountain Health facility aims to strengthen healthcare supply resilience, centralize distribution and support hospitals statewide with faster access to critical medical supplies.

26 What Can AI Do to Help Value Analysis?

Practical AI applications that will enhance value analysis work.

32 The Quiet Force Behind Patient Care

Often unseen and underappreciated, healthcare supply chain is emerging as a critical driver of quality and consistency. Experts say its real value lies in ensuring clinicians never have to pause care to find what they need.

44 Supply Chain … in Spaaaaaaaaaace!

ASA’s lunar program signals more than exploration – it hints at a future where logistics extends beyond Earth, redefining how and where supply chains operate.

46 Leadership Behaviors Powering Better Outcomes

From agile decision-making to transparent communication, leaders outline the habits that keep patient care at the center of every supply chain choice.

48 Industry News

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1



PUBLISHER’S LETTER

Strengthening the Chain: Inside Healthcare’s Push for Resilience, Collaboration and Innovation

John Pritchard

As we move deeper into 2026, one theme

and improving emergency preparedness. The

continues to emerge across healthcare supply

project highlights how logistics infrastructure is

chains nationwide: resilience is no longer

increasingly becoming a strategic extension of

optional. It is foundational to patient care.

patient care delivery.

In this issue of The Journal of Healthcare

Beyond these feature stories, this issue

Contracting, we spotlight healthcare organizations

explores a larger industry shift in our article, The

that are redefining what modern supply chain

Quiet Force Behind Patient Care. Supply chain lead-

leadership looks like — not simply by reducing

ers from organizations including AdventHealth,

costs, but by strengthening clinical partnerships,

Cleveland Clinic, Premier Inc. and Vizient discuss

improving operational resilience and keeping

how supply chain has evolved from a behind-the-

patient care at the center of every decision.

scenes operational function into a strategic driver

Our cover story examines how UC Health

of quality, consistency and clinical performance.

successfully aligned clinicians, supply chain and

Increasingly, supply chain decisions influence not

executive leadership to generate $30 million

only cost management, but also patient safety, cli-

in savings over two years without compromis-

nician workflows and the overall care experience.

ing quality. Their approach demonstrates the

Taken together, these stories reinforce a

growing importance of clinician engagement,

powerful reality: healthcare supply chain may

data transparency and disciplined value analysis

often be invisible to patients, but its impact is

in navigating today’s volatile supply environ-

felt in every procedure, every bedside interaction

ment. In an era of inflation, shortages and

and every moment clinicians can focus fully on

service instability, their story reinforces a critical

care instead of searching for supplies.

point: the most effective supply chains are collaborative ones.

As always, thank you for reading The Journal of Healthcare Contracting. We hope this

We also take readers to Montana, where

issue sparks new ideas, meaningful conversations

Intermountain Health is building the state’s first

and continued innovation across the healthcare

large-scale medical supply warehouse. What

supply chain community.

began as a resiliency initiative has evolved into a broader vision for regional “micro fulfillment” strategies that bring supplies closer to care sites while supporting local economies

2

June 2026 | The Journal of Healthcare Contracting

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

MODEL OF THE FUTURE

“When departments contract independently, they often don’t consider the health system as a whole,” Smith said. As systems expand through mergers and acquisitions, like Saint Francis’ network that includes multiple hospitals across the Tulsa region, coordinating purchasing becomes even more critical.

Smith noted that individual departments typically lack access to sophisticated benchmarking tools or deep contract analysis capabilities.

As a result, negotiations may rely on historical pricing rather than current market conditions.

Centralized contracting teams, by contrast, can aggregate data across the enterprise and benchmark against national standards to secure more favorable terms.

Central to Care How Saint Francis Health System leverages enterprise-wide coordination and data-driven insights to improve purchasing, streamline operations, and free hospital space for clinical care.

Tools and data sources, such as those offered

by GPOs, can further strengthen this approach by providing visibility into pricing trends and performance benchmarks. Smith emphasized that without reliable data, organizations risk negotiating without a clear understanding of achievable rates.

Balancing centralization with local flexibility remains a key consideration. Smith said success-

Centralized contracting is gaining traction

ful models pair contracting expertise with clinical

across health systems as organizations look to

insight by embedding supply chain professionals

better manage costs, standardize purchasing

alongside physicians and departmental leaders. This

and align decisions across increasingly complex

collaboration ensures that decisions reflect both

networks. At one Oklahoma-based IDN, leaders

financial goals and clinical realities.

“Contracting staff must participate in physi-

say the shift has been both deliberate and

cian meetings and surgical strategy sessions to

transformative over the past three years.

understand the key players,” he said, adding that

Phillip Smith, Executive Director of Supply Chain at Saint Francis Health System, said

aligning physicians across multiple sites can be

decentralized contracting often leads departments

one of the most difficult aspects of central-

to make decisions in isolation, without consider-

ized contracting. Sole-source agreements often

ing enterprise-wide impact. That approach can

yield the best pricing, but achieving consensus

limit negotiating power and obscure opportunities tied to scale.

4

Phillip Smith

among physicians on standardized products can be challenging.

June 2026 | The Journal of Healthcare Contracting

Value analysis has also evolved into a more

“Hospitals don’t have the luxury of excess space,” Smith added.

strategic function under centralized models.

“That space is better used for patient care.” By moving distribution

Rather than focusing solely on individual con-

offsite, the organization was able to expand its storage capacity while

tracts, teams are engaging physicians in broader

freeing up valuable hospital real estate for clinical functions such as

discussions about utilization, product standard-

dialysis services and simulation labs.

ization and cost-saving opportunities. Smith

The transition required investment in logistics, including transpor-

cited examples where introducing alternatives –

tation and staffing, but Smith emphasized that the long-term benefits

such as disposable scopes in certain procedures

outweighed the costs. “The value of reclaiming hospital space far out-

– can influence vendor pricing and drive more

weighed the cost of running the warehouse,” he said. The off-site model

favorable agreements.

also supports better inventory continuity and positioning across the

Physician engagement, he added, is generally positive when approached collaboratively.

health system’s facilities.

From a supplier standpoint, Smith said the shift did not create fric-

Employed physicians, in particular, tend to be

tion. “Supplier relationships didn’t change at all,” he noted. “Off-site

receptive when presented with data-driven strat-

distribution actually consolidated receiving and improved efficiency.”

egies that demonstrate both cost savings and

He added that the broader industry has largely moved in this direc-

alignment with clinical outcomes.

tion, with many vendors already equipped to support outsourced

Overall, centralized contracting is enabling

warehousing models.

health systems like Saint Francis to move

Many distributors provide off-site distribution services, sometimes

beyond transactional purchasing toward a

operating facilities more cost-effectively than hospitals can internally.

more coordinated, data-informed strategy

Looking ahead, Smith said the next step is to determine which

that supports both financial performance and

other Saint Francis facilities can be supplied from that warehouse. Elimi-

clinical priorities.

nating the on-site storeroom in other smaller hospitals will continue to add efficiency to the system. “We can carry more product, reduce touches and

Reclaiming space for clinical use

save on freight by storing product in bulk as much as possible,” he said.

Alongside centralized contracting, Saint Francis

At a broader level, Smith pointed to ongoing challenges shaping supply

Health System has also rethought how it man-

chain priorities across the industry, including cybersecurity threats, vendor

ages inventory and distribution, culminating

backorders, and supply disruptions. “Maintaining strong vendor relation-

in the development of an off-site distribution

ships is critical,” he said. “You have to ensure surgeries – the hospital’s

center designed to improve efficiency, resilience,

revenue engine – aren’t interrupted.”

and space utilization.

He also noted that workforce stability remains a key concern.

Smith said the decision was driven by

Retaining skilled supply chain professionals requires a combination of

limitations within the system’s original infra-

competitive compensation, flexibility, and opportunities for profes-

structure. “When I joined Saint Francis, we had

sional growth. Meanwhile, emerging technologies, including artificial

limited on-site storage – a few days’ supply in

intelligence, are beginning to play a larger role in contract intelligence

a 10,000-square-foot basement warehouse for

and operational optimization.

a 1,000-bed hospital,” he said. In his view, that

“Across everything we’re doing – centralized contracting, off-site

constraint made it difficult to maintain adequate

warehousing, and vendor consolidation – the goal is the same,” Smith

inventory, particularly as expectations for supply

said. “Be proactive, stay efficient, and support the clinical mission

resilience increased following the pandemic.

without interruption.”

The Journal of Healthcare Contracting | June 2026

5



EXECUTIVE INTERVIEW

The Next Generation Supply Chain

Chain Services, the timing is no coincidence.

Premier’s Bruce Radcliff and David Reitzel on why AI and partnership models are transforming healthcare.

sifying financial pressures, workforce strain and

For Bruce Radcliff, President of Supply Rapid advances in artificial intelligence over the past 12 to 18 months have converged with intenlong-standing gaps in data integration.

“The call to action has never been greater,” he said, pointing to an industry at a critical

As healthcare organizations face mounting pressure to improve

inflection point.

resilience, reduce costs and navigate ongoing disruption, Premier, Inc. is

In interviews with Radcliff and David

making a bold bet on the future of the supply chain. The company recently

Reitzel, Chief Solutions Officer, a clear picture

unveiled a sweeping, multi-year technology investment aimed at building

emerges: the traditional healthcare supply chain

an AI-powered platform designed to unify data, deliver real-time insights

model – built on siloed systems, retrospective

and ultimately reshape how health systems make decisions.

analytics and fragmented decision-making – is

6

June 2026 | The Journal of Healthcare Contracting

no longer sufficient for the complexity of today’s environment.

Radcliff echoed that sentiment, comparing current analytics environments to trying to bake without having ingredients prepared in

A model built for a different era

advance. Data exists across multiple systems –

Historically, health systems have relied on point

ERP platforms, electronic health records and

solutions tailored to specific functions, such as

procurement tools – but remains scattered and

procurement, quality or finance.

difficult to unify.

“The traditional model was well intended,”

“The scorecards are built on ingredients

Radcliff said. “We needed to be in that model to

that are sitting in different places,” he said.

get to the next one.”

“It’s too hard to bring them together into a

But those systems were inherently linear, while real-world decision-making is anything but. Health system leaders must weigh cost,

unified product.”

The result is a persistent gap between insight and execution.

Bruce Radcliff

quality, outcomes, resiliency and operational realities simultaneously. In the legacy model,

Bridging insight and action

those considerations were handled in isolation,

Both leaders point to workflow integration as the

often producing conflicting signals.

missing link. Traditional analytics are often static

“You’d have one vertical telling you to go left, another to go right and another to stay straight,” Radcliff said. “The real answer is somewhere in the middle.”

That fragmentation has become increas-

and lagging, limiting their usefulness in real-time decision-making.

“You have something that’s historical and dated,” Radcliff said. “That’s not a great platform for execution.”

ingly problematic as pressures mount. Rising

Instead, the goal is to embed intelligence

expenses, declining reimbursement and growing

directly into workflows, influencing decisions

operational complexity have exposed the limita-

before they are made rather than analyzing them

tions of siloed thinking.

after the fact. Radcliff likens the approach to

David Reitzel

online retail recommendations.

The data dilemma

“If you’re about to make a decision,

For Reitzel, the core issue is not a lack of data,

you should have information that helps

but the inability to use it effectively.

guide you in that moment,” he said. “That’s

“What’s broken is all the siloed data and the

what’s missing today.”

inability for people to consume it,” he said. “We

Reitzel added that empowering frontline

can’t continue to run our businesses in Excel.”

teams is critical. While executives may have

Many health systems have invested heavily

access to insights, the real opportunity lies

in analytics dashboards, but those tools were

in equipping staff and mid-level leaders with

never designed to drive decisions. “Dash-

actionable data at the point of work.

boards were designed to identify what hap-

“That’s the golden process,” he said. “Con-

pened,” Reitzel said. “That’s not a decision-

necting data to the point of transaction and

making platform.”

making it usable in real time.”

The Journal of Healthcare Contracting | June 2026

7



EXECUTIVE INTERVIEW

The rise of the intelligence layer

“Knowing what you spend is very differ-

At the center of Premier’s strategy is what both

ent than knowing how you spend it and what

leaders describe as an “intelligence layer” – a

outcomes you get,” Radcliff said.

unified platform that integrates disparate data sources and applies advanced analytics to uncover patterns and guide decisions.

For Radcliff, the value lies in reducing bias and expanding perspective.

“If you’re a finance person, you think in financial terms. If you’re a clinician, you think clinically,” he said. “The platform helps uncover what you might be missing.”

This approach challenges long-held assumptions, including the idea that any single data source – such as invoices – can serve as the ultimate source of truth.

8

Reitzel emphasized that the intelligence

The future replaces that manual effort with automated, dynamic platforms that continuously integrate and analyze data.

layer extends beyond technology. It requires organizational change, new workflows and a shift in how decisions are made.

“It’s not just about more data,” he said.

“It’s about how data, people and processes come together to create better decisions.”

Why partnership matters As some health systems explore building their own AI capabilities, both executives argue that scale and collaboration are essential.

June 2026 | The Journal of Healthcare Contracting

Reitzel noted that providers are already

“They’ll have the framework and the vocabulary

stretched thin, focused on delivering care and

to handle whatever comes next,” Radcliff said.

managing daily operations. Strategic partners can

Reitzel believes speed will be the defining

bring specialized expertise, scalable technology

factor. “Success will come down to who can

and a focus on measurable outcomes.

make better decisions faster,” he said.

“It’s not about selling products anymore,” he said. “It’s about delivering outcomes.”

Radcliff pointed to the importance of data scale in training effective AI models. Individual

In an environment defined by constant change, organizations that fail to evolve risk being overtaken by external pressures – whether economic, regulatory or operational.

organizations, he said, may lack the breadth of

Instead, he encourages health systems

data needed to generate meaningful insights.

to take proactive steps, even if the path for-

“The more information you can feed the system, the more value you can create,” he said.

“Scale matters.”

ward is not perfect.

“You can learn and pivot,” he said. “But doing nothing means the industry will decide for you.”

From whiteboards to platforms Today, many health systems still rely on manual processes to connect insights across systems – what Radcliff describes as a “CSI-style” approach of piecing together data points on a metaphorical whiteboard.

The future, he said, replaces that manual effort with automated, dynamic platforms that continuously integrate and analyze data. “The platform becomes that whiteboard,” he said.

“But it’s doing the work for you.”

This shift has the potential to significantly reduce the time required to move from data to decision, freeing up leaders to focus on strategy and execution rather than data gathering.

A widening divide Looking ahead, both leaders expect a growing gap between organizations that successfully adopt these capabilities and those that do not.

Health systems that embrace integrated platforms and data-driven decision-making will be better equipped to navigate uncertainty, from financial pressures to unforeseen disruptions.

The Journal of Healthcare Contracting | June 2026

From vendors to value partners As healthcare supply chains evolve, so too must the role of suppliers. According to Radcliff, suppliers are increasingly being asked to move beyond price-driven conversations and demonstrate broader value across the care continuum.

“It isn’t just about economics anymore,” he said. “Value is cost, quality, outcomes, resiliency, transparency and how something is operationalized.”

That shift reflects a growing alignment between providers and suppliers around a shared goal: improving patient care while maintaining sustainable business models. Suppliers are now looking for ways to better articulate their impact – not just in terms of cost savings, but in how their products and services contribute to overall system performance.

Reitzel added that deeper collaboration and data sharing will be essential. By working within integrated platforms and validating data more consistently, suppliers and health systems can create a more transparent and efficient ecosystem.

The result, he said, could be a fundamental shift in relationships.

“It’s moving from vendors to true partners,” Reitzel said – where success is defined not by transactions, but by shared outcomes.

9



MODEL OF THE FUTURE

Closing Montana’s Healthcare Supply Gap New Intermountain Health facility aims to strengthen healthcare supply resilience, centralize distribution and support hospitals statewide with faster access to critical medical supplies.

Health system leaders said the project is especially critical in Montana, where the nearest major distribution centers are hundreds of miles away in cities such as Salt Lake City and Denver.

Harsh winter weather and mountainous terrain can further complicate deliveries, sometimes delaying essential supplies.

Once operational, the center is expected to handle more than 500,000 medical supply items each year and support a courier network making about 25,000 stops annually.

Added layer of supply chain security Leaders at Intermountain Health say a new centralized supply warehouse in Montana is expected to streamline operations, reduce costs and improve hospitals’ ability to respond to disruptions.

A key efficiency comes from shifting storage out of hospitals and into a dedicated distribution facility. Traditionally, hospitals maintain large onsite inventories in central supply areas – space that could otherwise be used for patient care.

“Hospital square footage is very expensive Coming from an auto parts distribution background, Scott Dana

compared to warehouse square footage,” said

was struck by the lack of in-state healthcare logistics for Montana when

Dana. By relocating inventory to the new CSC,

he entered the industry more than a decade ago. In a state where most

facilities can repurpose clinical space for reve-

industries rely on local distribution hubs, hospitals and clinics have long

nue-generating and patient-focused activities.

depended on shipments from hundreds of miles away.

The new model also changes how supplies

“I just thought it was amazing that it’s easier for me to get a spark plug

move. Instead of delivering bulk shipments to

for my car than a lifesaving device,” said Scott Dana, Director of Supply

a central storage area and redistributing them

Chain Operations in Montana for Intermountain Health.

internally, the warehouse will send smaller, more

An ambitious initiative from Intermountain Health aims to bridge

precise orders directly to supply closets on

that gap. The health system will complete construction this September on

nursing floors and clinical units. That approach

Montana’s first large-scale medical supply warehouse, a centralized hub

reduces the need to hold large inventories while

designed to improve reliability and speed of deliveries across the state.

improving efficiency and access for care teams.

The facility, the Intermountain Consolidated Services Center, will store

Additional savings come from consolidating

and distribute medical supplies and support a network of hospitals, clinics

deliveries. The facility will house both medical

and other care sites statewide. It will also provide services such as laundry

supply distribution and a laundry operation,

and transportation.

allowing a single truck to deliver linens and

10

June 2026 | The Journal of Healthcare Contracting

supplies together, rather than requiring separate

Senior System Director of Distribution Ser-

shipments from different vendors.

vices at Intermountain Health. “But the second

Beyond day-to-day efficiencies, the warehouse is expected to strengthen supply chain vis-

thing that I think it really addresses too is local economic stimulus.”

ibility and resilience. Under the current model,

Slade said the facility – which will combine

hospitals rely on third-party distributors, limiting

distribution, transportation and laundry opera-

insight into upstream inventory levels. With a

tions, with potential future pharmacy functions

centralized system, leaders say they will be able

– is expected to generate a range of local jobs

to identify shortages earlier and respond more

that previously would have been handled out

quickly to disruptions.

of state. That includes positions in warehouse

Those improvements are especially important in Montana, where geographic isolation presents unique risks. Unlike urban markets such

operations, logistics coordination and transportation services, as well as linen/laundry jobs.

He noted that keeping those roles in

as Denver or Salt Lake City – where multiple

Montana means more healthcare-related infra-

distributors allow for same-day or even same-

structure dollars remain in the state rather than

hour deliveries – many Montana facilities are at

flowing to regional hubs elsewhere.

least a day away from critical supplies.

Construction of the facility is also expected

“That extra distance means you have to be

to deliver a near-term boost. While a national

prepared,” Dana said, noting that back orders and

contractor is overseeing the project, Slade said

inventory gaps can have more immediate conse-

roughly 95% of the work is being completed

quences. “If we don’t have it, we’re not going to

by local construction firms, with materials

be able to get it the same day.”

and labor sourced within the region. That, he

By bringing inventory closer to care sites, the new warehouse is expected to provide an

said, helps inject money directly into the local economy during the build phase.

While a national contractor is overseeing the project, Slade said roughly 95% of the work is being completed by local construction firms, with materials and labor sourced within the region.

added layer of security for clinicians, particularly in high-stakes settings such as operating rooms, where delays in obtaining supplies can directly impact patient care.

Local jobs, new technology expected to shape economic impact For Intermountain Health officials, the project was initially driven by supply chain resiliency concerns in a geographically isolated state. But they say its broader impact on the local economy is becoming equally significant.

“That was really our primary factor, looking at that market and saying supply resiliency is a concern up there,” said Gordon Slade,

The Journal of Healthcare Contracting | June 2026

11



MODEL OF THE FUTURE

Once operational, the warehouse is expected to create permanent jobs tied to ongoing supply distribution, transportation coordination and laundry processing – roles that Intermountain Health leaders describe as foundational to the facility’s long-term economic footprint.

Slade emphasized that workforce development is closely tied to the organization’s broader mission. “We feel that is a significant part of our mission at Intermountain Health, to be supportive of local communities,” he said.

In addition to economic and resiliency benefits, the project is also positioned as a testing ground for new logistics technologies that could influence future facilities across the health system.

12

Slade said Intermountain Health is exploring

Slade said the Montana facility will likely begin operations without full automation, allowing teams to establish stable workflows first.

“micro fulfillment” strategies that use smaller, regional distribution centers to complement a larger hub in Salt Lake City. Similar satellite-style facilities are also planned or under consideration in markets such as Las Vegas and Denver.

Because the Montana site is smaller than a traditional mega-warehouse, Slade said it will rely on flexible automation rather than large-scale fixed infrastructure. One key innovation under review involves autonomous mobile robots that move supplies through the facility.

Instead of fixed conveyor systems, the robots would transport carts of supplies to workers who complete picking and packing

June 2026 | The Journal of Healthcare Contracting

2026 ADA Standards Are Here!

In 2024, the DOJ and HHS adopted new Medical Diagnostic Equipment (MDE) standards issued by the US Access Board.

As a result, exam tables at facilities receiving federal or state funding must now meet minimum height requirements to ensure accessibility for all patients. The deadline for compliance is coming soon.

Scan to learn more about ADAcompliant equipment requirements



MODEL OF THE FUTURE

tasks at assigned stations. The system allows

facilities maintain full capability to support

human workers and machines to collaborate,

daily clinical needs.

improving efficiency without requiring extensive structural automation.

Slade said the Montana facility will likely

The strategy is also influencing hospital construction itself in Montana.

According to supply chain leaders, the design

begin operations without full automation,

of a new hospital in Billings was coordinated

allowing teams to establish stable workflows

alongside the consolidated services center project.

first. Once processes are refined, automation

That planning reduced the need for large on-site

tools are expected to be introduced within six

storage areas, freeing up space that can be used

months to a year.

for clinical care instead of inventory storage.

“We don’t need the square footage down in

Regional “micro fulfillment” model ties supply chain to hospital design

14

hospitals,” said Dana.

Intermountain Health leaders say Montana’s new

Instead, the new hospital will feature

supply warehouse is part of a broader regional

redesigned supply rooms that combine medical

strategy that balances centralized efficiency with

supplies and clean linens in shared locations,

local responsiveness across multiple states.

allowing deliveries from the warehouse to flow

At the top of that system is a large anchor

By shortening those supply lines, the organization can reduce transportation costs and reinvest savings back into clinical services.

central supply like we do in some of these other

directly into patient care areas more efficiently.

facility in Salt Lake City, which serves as the sysand large-scale operations, including value-added

“Everything we do is an investment in patient care”

services such as surgical kit assembly.

Ultimately, the new Montana supply warehouse

tem’s primary distribution hub for bulk storage

From there, smaller regional sites – includ-

is not just a logistics project – it is a long-term

ing planned facilities in Montana, Las Vegas and

strategy tied directly to patient care, cost control

Denver – function as “micro fulfillment” centers

and system resilience.

designed to serve nearby hospitals and clinics with faster, more direct deliveries.

“Our larger facilities are what we’ll develop

“The intent there is to mitigate against risk and resiliency challenges, as well as ensuring we’re providing care to the patients who need it

as centers of excellence,” said Slade. “The

most,” said Jeromie Atkinson, Chief Supply Chain

regional facilities are really geared towards ser-

Officer, Intermountain Health. “Everything that

vicing the marketplace. They’re not designed for

we do here is an investment in patient care at the

huge amounts of bulk storage.”

end of the day.”

Instead, those satellite locations are intended

Atkinson said success over the next several

to keep essential supplies close to care sites while

years will be measured by how effectively the

relying on the larger hub for specialized or high-

system can expand supply operations closer to

volume production.

where patients are served, particularly in regions

Slade said the approach allows Intermoun-

far from major distribution hubs in Salt Lake

tain Health to centralize complex work, such as

City and Denver. By shortening those sup-

assembling surgical kits, while ensuring smaller

ply lines, he said, the organization can reduce

June 2026 | The Journal of Healthcare Contracting

transportation costs and reinvest savings back into clinical services.

“Ultimately, when we save money, that’s money that goes directly to the bottom line that can be reinvested in patient care,” Atkinson said.

Leaders also pointed to resilience as a core benchmark for the facility. The consolidated services center is designed to function as a buffer during emergencies, including natural disasters and large-scale disruptions that could otherwise strain supply chains dependent on out-of-state vendors.

“That’s what happens if we have a natural disaster in the marketplace?” said Slade. “If you don’t have a CSC, you’re very reliant on others.”

Slade said lessons from the COVID-19

He also emphasized that resilience extends

Having inventory and distribution capacity within the state provides greater stability when national supply networks are strained.

beyond high-tech equipment or pharmaceuticals. Basic hospital needs – including linens and everyday consumables – are critical to keeping facilities operational.

“There’s a lot to be said about linen as well,” Slade said. “At the end of the day, the basic staples matter.”

As Montana’s first large-scale facility of its kind, the warehouse is also expected to serve as a model for future expansion across Intermountain Health’s regional network. Leaders said it will help define how smaller, localized distribution centers connect to larger “center of excellence” hubs while maintaining flexibility during emergencies.

For clinicians and supply chain teams alike,

pandemic underscored the importance of con-

the goal is straightforward: fewer delays, fewer

trolling supply chains locally, rather than relying

shortages and a more reliable flow of sup-

entirely on external distributors. Having inven-

plies to the bedside.

tory and distribution capacity within the state,

As Atkinson put it, “We won’t eliminate

he said, provides greater stability when national

every variable of risk, but we’ll be able to buffer

supply networks are strained.

against most of them.”

The Journal of Healthcare Contracting | June 2026

15

™ Cardinal Health Cardinal Health™ Lab Lab Briefings Briefings

2025 A A year year in in review review

In 2025, Cardinal Health’s PACE-accredited Lab In 2025, Cardinal Health’s PACE-accredited Lab Briefings webinar series continued to lead the way Briefings webinar series continued to lead the way in providing trusted monthly education designed for in providing trusted monthly education designed for laboratory professionals. Each session connected the laboratory professionals. Each session connected the lab community with leading experts to address lab community with leading experts to address critical challenges and deliver actionable knowledge critical challenges and deliver actionable knowledge to help lab professionals thrive in a rapidly evolving to help lab professionals thrive in a rapidly evolving healthcare landscape. healthcare landscape.

Total credit hours earned Total credit hours earned

Total attendees Total attendees

10,688 10,688

117,568 117,568

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April April Topic:

May May Topic:

June June

Topic: Lab payment and policy outlook Lab payment and policy outlook for 2025 for 2025 Speaker: Speaker: Dennis Weissman, M.S. Dennis Weissman, M.S.

Topic: The clinical lab’s role in The clinical better lab’s role in promoting patient promoting outcomes better patient outcomes Speaker: Speaker: James Crawford, MD, Ph.D. James Crawford, MD, Ph.D.

Topic: 2024 CAP accreditation checklist 2024 CAP accreditation checklist updates updates Speaker: Speaker: Stephen Sarewitz, MD, FCAP Stephen Sarewitz,MD, MD,FCAP FCAP Gregory Gagnon, Gregory Gagnon, MD, FCAP

Topic: Beyond the label: novel Beyond the label: novel applications of cardiac applications biomarkers of cardiac biomarkers Speaker: Speaker: Christopher W. Farnsworth, Ph.D., Christopher W. Farnsworth, Ph.D., DABCC DABCC

Topic: Chemical safety in the workplace Chemical safety in the workplace Speaker: Speaker: Margaret Blaetz, CLC, MLT(AMT), Margaret Blaetz, CLC, MLT(AMT), Mcm, MLT(ASCP), CCCP(AAPOL) Mcm, MLT(ASCP), CCCP(AAPOL)

Topic: Topic: From hidden to found: Giving From to found: Giving a voicehidden to medical lab science a voice to medical lab science Speaker: Speaker: Austin Korczak, MLS (ASCP)CM Austin Korczak, MLS (ASCP)CM

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August August Topic:

Topic: Evaluating urine fentanyl tests Evaluating urine fentanyl tests for clinical implementation for clinical implementation Speaker: Speaker: Rongrong Huang, Ph.D. Rongrong Huang, Ph.D.

November November Topic:

Topic: The intricacies and complexities The intricacies diagnostics and complexities of pharyngitis of pharyngitis diagnostics Speaker: Speaker: Susan Butler-Wu, Ph.D., Susan Butler-Wu, D(ABMM), FIDSA Ph.D., D(ABMM), FIDSA

September September Topic:

Topic: Data-driven optimization of Data-driven optimization of diagnostic thresholds diagnostic thresholds Speaker: Speaker: Jieli Shirley Li, MD, Ph.D., DABCC, Jieli Shirley Li, MD, Ph.D., DABCC, FCACB FCACB

October October Topic:

Topic: Lab compliance and test Lab compliance andfor test utilization: Prepare 2026 utilization: Prepare for 2026 and beyond and beyond Speaker: Speaker: Andrew Fletcher, MD, MBA, CPE, Andrew CHCQM,Fletcher, FCAP MD, MBA, CPE, CHCQM, FCAP Danielle Tangorre, JD, MS Danielle Tangorre, JD, MS

Explore our full archive of webinars.

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Earn CE credits for up to six months after the live event.

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© 2026 Cardinal Health. All rights reserved. CARDINAL HEALTH and the Cardinal Health LOGO are trademarks of Cardinal Health and may be registered inCARDINAL the US and/or in other All Health other marks property © 2026 Cardinal Health.

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HEALTH and countries. the Cardinal LOGOare arethe trademarks of their respective owners. cardinalhealth.com/patents.

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Aligning Cost, Care and Collaboration Inside UC Health’s successful model for engaging clinicians early to balance financial stewardship with clinical quality.

At Ohio-based UC Health, LLC, supply chain is a strategic partner in delivering high-quality patient care even as the healthcare supply market has become increasingly volatile due to inflation, shortages, supplier exits and service‑level instability. Against this backdrop, UC Health’s supply chain team partnered closely with clinicians and system leadership to generate $30 million in savings over a two-year period to improve market benchmark and strengthen resilience – without compromising patient quality.

18

June 2026 | The Journal of Healthcare Contracting

According to Derrick Billups, MSHA,

goals, ensuring the bigger picture remains

CMRP, FACHE, Vice President of Supply Chain

clear – even during periods of cost pressure or

and Support Services, that success started with

supply disruption.”

intentionally building the right team and culture.

Firm foundations

“Key team member qualities include leadership, adaptability, analytical thinking, strong

UC Health’s collaborative culture has driven

communication skills, and the ability to work

measurable results. A great example is the or-

effectively across both clinical and operational

ganization’s recent approach to supply optimi-

functions,” Billups said. “In today’s healthcare

zation and standardization, Billups said. “We

environment, supply chain professionals must

built a culture of collaboration where clinicians

thrive in a fast-paced environment and with

are engaged throughout the process, ensur-

cross functional teams – partnering with clinicians, operations and finance to align priorities and deliver results.”

Those capabilities became even more critical as UC Health pursued aggressive savings targets in parallel with a widespread supply market instability. Achieving $30 million in savings over a two-year period required a high number of product conversions across multiple categories.

Billups emphasized that accurate data and communication were non‑negotiable. “Team members must have access to accurate data and

“Vendors who demonstrate consistent availability and dependable delivery bring far more total value than those focused on price alone.”

ing decisions reflect both clinical priorities and operational goals.”

A key component is the organization’s Clinical Review Committees (CRC), composed of physicians who serve as primary users in each category (example: Cardiology – drug eluting stents). “We start with data and walk them through supply recommendations starting with clinical quality, then opportunities related to supplier mix and standardization that would improve cost efficiency without affecting patient care,” said Kristen Crawford, Director of Strategic Sourcing.

interpret data to make informed decisions to

She added that the CRC process is

build trust with clinicians and executives,” he

designed for speed and engagement. “We

said. “That trust is what allows supply decisions

designed the CRC structure to wrap up in four

to happen at scale without disrupting care.”

to six weeks from start to finish, which helped

Maintaining alignment during cost pressure

us move quickly while still keeping clinicians

or disruption requires a strong sense of purpose.

closely involved,” Crawford said. Increased

“We emphasize transparency and purpose as the

physician involvement has strengthened buy-

foundation of our team culture,” Billups said.

in and decision-making.

“Behind every supply decision or pallet delivery is a patient.”

That perspective helps guide priorities.

During this period, UC Health also reduced its Vizient Price Competitive Index by 10 points, reaching best-in-class performance. “We focused

“That’s why we align every action with support-

on four strategic levers,” Billups said, includ-

ing providers and improving care,” he said. “To

ing clinician partnerships, contract optimiza-

maintain momentum, we celebrate incremental

tion, benchmarking, and external partnerships

wins and share progress toward long-term

with Vizient and Captis. Standardization of

The Journal of Healthcare Contracting | June 2026

19

ALIGNING COST, CARE AND COLLABORATION

high-dollar supplies played a central role. “By

cardiology helped align sourcing strategy with

narrowing product and supplier options, we

clinical needs while improving costs.

could offer suppliers more committed volume,”

Derrick Billups

Crawford said. “In return, we earned better

Leading through uncertainty

pricing and higher tier positions.” That commit-

Recent years have tested hospitals all across

ment also helped UC Health maintain supply

the country, not just at UC Health, with supply

continuity during periods of market disruption,

chain market disruptions and resilience. “Supply

when suppliers prioritized consistent, con-

disruptions and tariffs have been two of the most

solidated partners.

significant challenges we have faced,” Billups said.

UC Health is evolving how it measures resilience.

Value beyond price

The organization identified supply “showstop-

At UC Health, cost reduction only works if

pers” – critical supplies that could halt operations

quality is protected.

– and ensures clinically validated alternatives are

“Clinical quality and patient safety are

in place. In addition, UC Health responded by

absolutely non‑negotiable,” Billups said. “Every

strengthening distributor relationships, imple-

decision begins with that commitment.”

menting formal resilience plans and dedicating a

The organization applies a disciplined value Kristen Crawford

analysis framework, evaluating every product

decision that proved critical as activity increased

request across three dimensions: clinical evidence,

with product allocations and clinically approved

patient safety and financial impact. The struc-

product substitutes.

ture ensures that cost savings never come at the expense of care delivery.

Collaboration with clinicians is essential.

20

full‑time role to manage supply disruptions – a

Coordination across departments is critical.

“Keeping everything stable during major supply disruptions comes down to coordination and

“This begins with partnering and listening,”

clear communication,” said Zack Gapinski,

Billups said. “We engage clinicians early in the

Director of Clinical Integration. For UC Health,

decision-making process to understand their

that meant creating clear escalation paths, align-

clinical priorities and challenges.”

ing nursing leadership with supply chain strategy,

For UC Health, vendor evaluation goes

and ensuring clinical teams had advanced visibil-

beyond cost. “Price is certainly important,

ity into substitutions or allocations. “When dis-

but supply reliability matters just as much,”

ruption hits, speed and clarity matter,” Gapinski

said Crawford. “Great pricing doesn’t help if

added. “Everyone needs to understand not just

the product is unavailable from the manufac-

what is changing, but why it’s changing and how

turer or distributor. Vendors who demonstrate

it affects patient care.”

consistent availability and dependable delivery

That coordination relied heavily on accu-

bring far more total value than those focused

rate, reliable data – particularly at the foun-

on price alone.”

dational level of supply systems. Accurate

This broader definition of value has guided

data systems also play a key role. “If the item

collaboration with clinical teams. Early partner-

master isn’t accurate, nothing downstream

ships with service lines such as orthopedics and

runs the way it should,” said Deanna Inabnitt,

June 2026 | The Journal of Healthcare Contracting

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ALIGNING COST, CARE AND COLLABORATION

Deanna Inabnitt

Luigi Oliverio

Zack Gapinski

Director of Purchasing. “Keeping the item

embedded in strategy. “We have embedded

master clean and up to date is one important

supply resilience as a core component of our

contribution we made.”

strategy,” Billups said, including supplier part-

Inabnitt emphasized that item master integrity became even more important during periods

22

nerships and data-driven forecasting.

When it comes to building a resilient supply

of high disruption, when substitute products,

chain team, Gapinski emphasized mindset and

emergency sourcing or rapid conversions were

adaptability as critical differentiators. “The people

required. “When we had to pivot quickly, we

who excel are naturally curious and comfortable

needed confidence that item attributes, units of

challenging old assumptions in a constructive

measure, clinical approvals and supplier infor-

way,” he said. In an environment defined by

mation were correct,” she said. “That accuracy is

constant change, those traits enable teams to

what allowed clinical teams to trust the products

question the status quo, respond quickly to dis-

arriving at the bedside and operational teams

ruptions and collaborate effectively. Clear com-

to execute without delays.” Resilience is now

munication and strong problem‑solving skills,

June 2026 | The Journal of Healthcare Contracting

ensures those decisions are carried out reliably across care settings.

He noted that large‑scale product conversions or supply disruptions must not result in disruption at the bedside. “Our responsibility was to make sure product substitutions or conversions are seamless – right product, right location, right timing,” Oliverio said. “This requires tight coordination with supply chain strategy, purchasing, nursing leadership, and clinical teams.”

Through this coordination, materials management helped translate system‑level initiatives into consistent, uninterrupted care delivery.

Anticipating 2026 trends

he added, are essential for navigating uncertainty and maintaining stability across the organization. Maintaining alignment requires consistent communication and recognition of progress.

“Shining a light on successful conversions, savings, or operational improvements reminds everyone that their work truly matters,” he said.

For Luigi Oliverio, Director of Materials Management, the success of UC Health’s savings and conversion efforts ultimately hinged on execution discipline at the front line – where strategy meets day‑to‑day operations. While sourcing strategies and clinical approvals guide decision‑making, Oliverio emphasized that materials management

The Journal of Healthcare Contracting | June 2026

As healthcare organizations move further into 2026, supply chain leaders are keeping a close eye on rising costs and economic pressures that could impact patient care. Derrick emphasized that while reimbursements remain largely flat, expenses across the healthcare system continue to climb.

“Costs are going up – technology, care delivery, human resources, and product pricing,” Billups said. “For supply chain, that means we need to mitigate those increases wherever possible to ensure our providers and patients still have what they need to meet outcomes.”

Healthcare supply chains are also navigating inflationary pressures layered on top of broader economic and geopolitical challenges. Tariffs, market disruptions, and potential price escalations all add complexity to procurement and inventory planning. “It’s about making sure we have the right product in the right place at the right time, while also managing market disruptions and inflation,” Billups explained.

The stakes are high: hospitals must balance rising supply costs against a healthcare system that has limited appetite – or ability – to absorb additional expenses. “Controlling inflationary increases in supplies and technology is critical in today’s environment of flat or declining reimbursements,” Billups said.

23

We see it.

Strained Reaching

Incorrect Positioning

Inaccessible Equipment

Manual Entry

The job is already hard.

The environment shouldn’t make it harder.

© 2026 Midmark Corporation, Versailles, Ohio USA

At Midmark, we start from that truth. And our mission is simple and serious: design every detail to remove friction where it shouldn’t exist.

To give time, focus and energy back to the people doing the work.

Better care begins with every detail.

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

VALUE ANALYSIS

What Can AI Do to Help Value Analysis?

Practical AI applications that will enhance value analysis work.

BY JAMES RUSSELL, RN-BC, MBA, CVAHP, FAHVAP, DIRECTOR, VALUE ANALYSIS DEPARTMENT AT MD ANDERSON

Repetition reduction There are key questions we want answered at the beginning of most projects. We typically divide our work into two categories: procedural and patient care. While there are similarities between them, procedural projects tend to extend further into areas such as margins, billing, coding, and reimbursement.

For this discussion, we’ll use patient care as the example.

Patient care projects include items that are not directly billed for – meaning there are no associated procedure codes. Examples include commodities such as needles, underpads, isolation gowns, and, my personal favorite, exam gloves.

This category also includes items used during procedures that are not billed as individual line items, such as a Huber needle used to access a portacath, procedure-specific drapes and gowns, and convection warming devices used to prevent shivering in the post-anesthesia care unit (PACU).

Ultimately, if an item does not have its own Current Procedural Terminology (CPT) code, it is typically categorized as patient care.

Value analysis professionals are increasingly being asked,

Let’s imagine a clinician is exposed to a new

“How are you using artificial intelligence (AI), and how can we help?”

product at a professional conference (some-

This question comes from both internal stakeholders – such as Patient

thing that never happens!). To make it fun, we’ll

Safety, Performance Improvement teams, and executive leadership – as

say it’s an exam glove that’s new to the market.

well as external partners, including vendors, manufacturers, and group

When this happens, value analysis profession-

purchasing organizations (GPOs).

als typically want three questions answered

Everyone wants to help. At least half of value analysis is math – numbers,

by the requester:

calculations, and formulas. The other half involves relationships, team build-

1. What’s the problem you’re trying to solve?

ing, change management, and more. It’s the analytical side where AI can

2. How will this product help you solve it?

offer the most support.

3. What data will you measure to

In exploring this further, we quickly found that simply asking Microsoft

evaluate its success?

Copilot or Google Gemini to wordsmith an email isn’t really leveraging AI in a meaningful way. What follows is a more in-depth look at this question –

If a clinician can’t answer these questions or can’t

and, in short, how you and AI can work together to support this function.

spare the time to do so, then they don’t really want

26

June 2026 | The Journal of Healthcare Contracting

the product. One of my department’s goals is

provides comparison data to evaluate and track our impact if we convert

not to waste time or effort when the requestor is

to the requested product (cost savings, cost avoidance, utilization changes,

not invested. The requester has responsibilities

etc.), which we track and report on routinely. Here is an abbreviated list of

throughout the new product process, and they

what this step entails.

must be willing to perform them. In our example, the requestor is excited, and their answers to our

Historical data:

initial questions are as follows:

` Our spend, monthly, on exam gloves for the last 12 to 24 months.

1. Our glove boxes are turned sideways and

` Our utilization (by the “each”) monthly as well. Don’t give us how many

placed in a holder on the wall. Often, when I pull one glove out of a box, a dozen fall to the floor.

2. This new product has clear plastic covering

boxes, cases or pallets we’ve bought! ` Our “each” price per glove. This will help us compare to the requested item. It may come with a different quantity of gloves per box. Won’t matter, if we’re comparing “eaches.”

the hole in the box where the gloves come

` Also, most glove manufacturers charge more money for extra-large size gloves

out, with a slit that allows you to remove

(more material is required to make them) and there often are fewer of

one glove at a time, eliminating the waste

them per box than the smaller sizes. Again, normalizing the data by size and

described above.

reducing it to the “each” matters.

3. We will monitor the utilization of gloves per patient day for a three-month trial in our

` The departments that use the most gloves. We might want to involve the highest users in a trial, if necessary.

28-bed Surgical Intensive Care Unit (SICU).

Our hypothesis is that the number of gloves

Forecasted data:

used, normalized by the per patient day met-

` If the gloves have the same “each” price, and the requester’s hypothesis

ric, will decrease.

holds true, what will our numbers look like with a reduction in glove usage of 1%, 2% or 5%? How much cost savings might this equate to?

The question that really tells the story is

` Does the requester’s glove cost more by the “each,” but the expected

number three. It shows the requester’s investment

decrease in utilization is expected to offset that increase? What’s the

in the process and the outcome. Also, this request

benefit of a decrease in waste, both financially and environmentally?

is really about the box, not the glove. Of course,

` How do the quantities per UOM compare? If the current product

we’ll go through the normal “glove vs. glove”

comes as 250 gloves per box and the requested product comes as 150

comparisons, making sure the specifications meet

gloves per box, we will be going through, and throwing in the trash,

our minimums, but let’s keep this simple.

more boxes to use the same number of gloves. Even a decrease in

There are several next steps in our process. Key to this is a description (with product

utilization might result in an increase to the medical waste stream and our carbon footprint.

numbers) of what the requester is using now.

With that information, and where AI may be

I’ll stop here, but this highlights the complexity and adaptability

of service, is baseline data (what are we doing

involved in nearly every patient care product request. Procedural projects

now?), and a comparison to what might happen

require even more data, including margins, case costs, and provider

if the project is successful. This step creates the

outcomes. A truly valuable AI tool would automatically pull historical and

source of truth, where we can make decisions,

forecasted data when a request is submitted, creating credible, forward-

based upon objective data, not emotion. It also

looking analyses instead of just static reports.

The Journal of Healthcare Contracting | June 2026

27

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Lit. No. 2LAB26-4105508 © 2026 Cardinal Health. All Rights Reserved.

CARDINAL(02/2026) HEALTH and the Cardinal Health LOGO are trademarks of Cardinal Health and may be registered in the US and/or in other countries. All other trademarks are the property of their respective owners. Patent © 2026 Cardinal Health.

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such as incorrect biopsy site labeling or

ment decisions. For large health systems

consistency, but these innovations rely on

data entry mistakes.2

processing thousands of specimens

consistent upstream processes, including high-quality tissue preparation, staining

Variations in quality among products including histology reagents, fixatives, embedding media, microtome blades, staining kits and slides can potentially compromise tissue integrity and distort detail, leading to reduced diagnostic yield.

and slide handling. Therefore, reliable products and workflows are critical to realize the promise of advanced diagnostics.

Supporting anatomic pathology laboratories with dependable products, services and distribution is foundational to delivering high-quality patient care.

Cardinal Health facilitates collaboration between clinical experts, supply chain and

While many pathology errors fortu-

monthly, even brief interruptions in

suppliers to get customers the products

nately do not affect patient outcomes

supply can lead to backlogs that cascade

they want, all through our resilient distri-

because of checks like multidisciplinary

through surgical suites, oncology clinics

bution network tailored to the specialized

review and second opinions, when an

and diagnostic services.

needs of pathology and histology labs.

error does impact diagnosis or staging,

Additionally, because many reagents

it can directly influence treatment plans

and consumables have unique storage,

and sectioning, our portfolio of histol-

and prognosis. Misinterpretation or

handling and regulatory requirements, en-

ogy instruments and consumables offers

sampling inadequacies may delay appro-

suring that cold chain reagents, calibrated

high-quality products that provide preci-

priate therapy or, while rare, potentially

instruments and lot-traceable supplies

sion at a savings. Our expanding Cardinal

lead to overtreatment.

arrive intact and on time is crucial.

Health™ Brand portfolio of anatomic

From tissue processing to embedding

Anatomic pathology workflows rely

Histotechnologists, pathology assis-

pathology products helps labs maintain

on quality supplies across every step in

tants, pathologists and supply chain pro-

continuity of care, reduce variability and

tissue processing, from collection and

fessionals collaborate to maintain qual-

support diagnostic excellence, oftentimes

fixation to processing, staining and slide

ity, safety and efficiency. With ongoing

at a savings to your facility.*

References: 1. Elmore JG, Longton GM, Carney PA, et al. Diagnostic Concordance Among Pathologists Interpreting Breast Biopsy Specimens. JAMA. 2015;313(11):1122-1132. doi: https://doi.org/10.1001/jama.2015.1405 2. Huang S, Patel V, Lee JB. Errors encountered in the diagnostic pathway: A prospective single-institution study. Journal of Cutaneous Pathology. 2023;50(9):828-834. doi: https://doi.org/10.1111/cup.14474 ‌*Contract savings recognized through GPO contracts based on historical data to date. Savings are not guaranteed.

30

June 2026 | The Journal of Healthcare Contracting

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

SUPPLY CHAIN AND PATIENT CARE

The Quiet Force Behind Patient Care Often unseen and underappreciated, healthcare supply chain is emerging as a critical driver of quality and consistency. Experts say its real value lies in ensuring clinicians never have to pause care to find what they need.

BY R. DANA BARLOW

Within healthcare provider organizations, clinicians – as well as front-office administrators (e.g., admissions, discharge, accounts payable, etc.) – directly interact with patients (customers) and their families in various ways. But the socalled “back-office” operations – all those functions and tasks that happen behind the curtain to make a healthcare organization run, such as supply chain, rarely receive any visibility, notoriety or appreciation … unless something goes wrong and the clinicians can’t find something.

One of the supply chain advantages arguably enjoyed by retail is that customer service and touch can be immediately visible.

If something the customer wants is available on the shelf, the customer

Certainly, touching the patient can be a mindset/motivating factor for supply chain – even indirectly.

then buys it with satisfaction. If something the customer wants is not on

Marisa Farabaugh, Senior Vice President

the shelf, the customer may first complain about it before finding a clerk

and Chief Supply Chain Officer, AdventHealth,

to search the storeroom or warehouse to locate additional stock. If the

thinks of this more as a philosophy.

product is available, the customer is satisfied but still complains about the

“Our team members know that their work

inconvenience in having to wait. If the product is not available, then the

is patient care. Period,” she told The Journal of

customer either travels to another retail outlet or buys it online. Some will

Healthcare Contracting. “They may not always

complain about it on social media.

touch or see a patient, but our work is patient

Supply chain (the department performing the function) within healthcare

care. The supporting philosophy and culture

provider organizations likely don’t enjoy such experiences in the same way,

is that we work with a sense of urgency and

which they might view as more of a luxury.

with the patient in mind as we solve problems.

We focus on solving problems that ultimately improve our patient experience, and our work is prioritized as such.”

Caryn Staib, Vice President, Medical/Surgical, Clinically Preferred and Laboratory, Vizient, encapsulates this philosophy rather cleverly.

“Supply chain is the invisible clinical enabler – when it works well, patients never notice; when it fails, it directly impacts care, safety and experience,” she observed. “The opportunity now is to move from invisible to indispensable.”

Indirect contact, touch While indirect contact and touchpoints with patients may be common for supply chain, the

32

June 2026 | The Journal of Healthcare Contracting

arm’s length connection still exists and is no less

impressions, according to Joe Loya, Director,

important. And some of the direct links involve

Purchasing & Distribution, St. Joseph’s/Can-

functions within the overall department.

dler Health System.

“Traditional supply chains in healthcare don’t

Loya points to supply chain’s involvement in

directly interface with patients, but we do keep

purchasing and participating in furniture, floor-

the patient front and center in how we think

ing and wall-covering standards. “Aesthetics of

and approach our work,” indicated Eric Tritch,

all onsite and off-site facilities give patients the

Senior Vice President, Supply Chain & Support

very first impressions of the organization,” he

Services, UChicago Medicine. “If it doesn’t add

said. “Comfort and the visual settings of waiting

value for our patients and their families, then we

rooms and patient procedural area makes a very

look at it as non-value and try to find ways to

significant impact to patient perceptions related

optimize and minimize waste. At UCM, supply

to care and quality.”

chain has the privilege to oversee a number of

Others acknowledge and, in some cases, “When supply chain functions trumpet the visibility issue as both a positive and negative trait where “behind-the-scenes” activiwell, clinicians ties can be expected but missed or overlooked. can focus fully “Supply chain plays a vital yet often unseen on patients role in patient care, shaping every patient experiinstead of ence,” noted Steve Downey, Chief Supply Chain tracking down and Patient Services Officer, Cleveland Clinic.

“Behind the scenes, teams make sure medicasupplies, tions, sterile instruments, implants and essential managing substitutions supplies are in the right place at the right time.

Working closely with clinical leadership, they or navigating help vet products to ensure high standards of shortages.” quality and safety, while monitoring use to sup-

operations that do interact directly with patients, including environmental services, patient transportation, public safety and parking, and so we get to focus directly on how our operations support our patients in their care.”

Farabaugh insists that supply chain touches the patient in nearly every moment of care, often without being seen.

“When a clinician walks into a room, everything they need to care for a patient should be ready and available,” she noted. “The supplies, equipment and medications are the result of upstream decisions across sourcing, logistics and operations teams. We often say our role is to

port consistent, evidence-based care.

ensure the right product is in the right place at

“Supply chain teams are stewards of the

the right time. When that happens consistently,

organization’s resources, driving cost efficiency

care can be delivered seamlessly. While supply

through strategic contract negotiations, uti-

chain may not be at the bedside, it is directly

lization management and strong governance

connected to it. Every partnership, contract

practices,” he continued. “Their work helps

and inventory decision enables our clinicians

maintain financial sustainability while uphold-

to deliver care.”

ing the highest quality standards. Supply chain

While some focus on clinical devices,

also plays a critical role in managing third-party

equipment and product that reside within the

risk, ensuring that all vendors meet provider

deeper confines of a healthcare facility, sup-

standards, protecting patients not only during

ply chain’s reach and influence extends well

hands-on care but also in secure handling of

beyond the inner realm and impacts first

health information.

The Journal of Healthcare Contracting | June 2026

33



SUPPLY CHAIN AND PATIENT CARE

“Even beyond clinical settings, supply chain

“When decisions are grounded in clinical evidence and aligned with clinician input, variation is reduced, utilization is optimized and unnecessary waste is minimized.”

34

“Through clinical preparedness, patient

supports the patient experience by ensur-

safety, clinical consistency and affordability,

ing consistent availability of food and sup-

supply chain collaborates with care givers and

plies, making high-quality meal service pos-

operators to support the delivery of safe, reliable

sible,” Downey added.

and compassionate care to the communities we

“Supply chain touches nearly every aspect of

are blessed to serve,” he noted. “Clinicians rarely

the patient experience, even if patients never see

think about supplies when they are available and

it directly,” said Bruce Radcliff, President, Supply

reliable. Effective supply chains ensure the right

Chain Services, Premier Inc. “From ensuring

product, from the right supplier, is in the right

clinicians have the right supplies at the right time

place, at the right time – supporting patient care,

to managing product quality, standardization and

outcomes and experience.”

cost efficiency, supply chain plays a foundational

From a clinical point of view, Stephanie

role in care delivery. When supply chain func-

Duggan, M.D., FACEP, FAAPL, CPE, Chief

tions well, clinicians can focus fully on patients

Clinical Officer, SSM Health, echoes Forth’s

instead of tracking down supplies, managing

depiction, specifically because the clinical teams

substitutions or navigating shortages.”

play such an active role in decision making.

If anything, supply chain plays an organic

“Having consistent conversations with care-

role in an organization’s success and ability to

givers as new equipment comes up with actual

provide patient care, according to Radcliff.

input being sought and listened to is an indirect

“At Premier, we often describe supply

touch,” she noted. “The clinical programs and

chain as the connective tissue between clini-

subgroups provide this support and accelerate

cal, operational and financial performance,”

the change curve in a positive direction.”

he said. “Decisions about product selection, contract alignment and inventory management directly influence care consistency, safety and

Shaping interactions

outcomes. For example, standardizing products

But what if supply chain and clinicians look at

across departments can reduce variation in

the issue from a different perspective – not one

care, improve clinician familiarity and ultimately

of indirect or direct touch as an either/or choice

enhance patient safety. Similarly, proactive

but something in between?

sourcing and demand forecasting help prevent

Supply chain does not just indirectly touch

disruptions that could delay procedures or

the patient – it shapes every clinical interaction,”

impact care timelines. While patients may not

argued Chad Mitchell, Vice President, Medical/

see these activities, they experience the benefits

Surgical, Core Essentials, Vizient. “Long before

through smoother care, fewer delays and more

a clinician enters the room, supply chain deci-

consistent outcomes.”

sions have already determined what products,

Brad Forth, Chief Supply Chain Offi-

capital equipment and diagnostic tools are avail-

cer, SSM Health, concurs that supply chain

able, what options exist and whether care can

touches every patient interaction – just rarely

proceed as expected within established clinical

in a visible way.

workflows. Lack of product availability or the

June 2026 | The Journal of Healthcare Contracting

use of unfamiliar items can drive delays and disrupt continuity of care, while contracting decisions determine the tools available to clinicians.”

Operational views may fall short of the actual spectrum, according to Mitchell.

“Reliability in sourcing, inventory management and distribution is not simply operational – it is foundational to consistent, safe care delivery,” he insisted. “These same decisions also influence the cost of care, ensuring that health systems can deliver high-quality care in a financially sustainable way. When disruptions occur – backorders, recalls, substitutions or logistics delays – they introduce variability that inevitably reaches the bedside. These upstream

utilization is optimized and unnecessary waste is minimized. This consis-

decisions directly impact patient care.”

tency allows clinicians to build familiarity and proficiency with the tools they

Staib urges supply chain executives, leaders,

use, strengthening individual expertise, reinforcing standard practice and

managers and professionals to move beyond

contributing to safer, more predictable outcomes. In many cases, improved

touchpoint thinking and embrace the interaction

outcomes, reduced waste and the use of high-quality, aligned products and

and integration of clinical and operational strate-

technologies also contribute to overall cost savings for the organization. Ulti-

gies and tactics.

mately, if supply chain decisions define the tools used in care, they also help

“More directly, these decisions determine

define the consistency, quality and outcomes patients experience.”

what products, capital equipment and diagnostic tools are utilized by clinicians at the point of care,” Staib said. “They directly influence how

Direct contact, touch

clinicians assess, diagnose, treat and monitor

To most, it’s evident that supply chain indirectly touches patients; but to

patients. When products and technologies are

some, supply chain maintains a direct connection as well, depending on

aligned with clinician training, experience and

how you frame it.

evidence-based practice, they support more

“Can supply chain really touch the patient? The answer is yes,” Cleve-

precise decision-making, improve efficiency and

land Clinic’s Downey asserted. “It’s not about being front and center; it’s

reinforce confidence at the bedside. If those

about shaping what the patient experiences, receives and ultimately, feels.

tools vary, so can care. In practice, supply chain

Sometimes the connection is more visible. Even something as routine as

decisions are clinical decisions – they define the

meal service becomes an opportunity to make a difference. When done

tools clinicians use to deliver care.

with consistency and compassion, it turns an everyday interaction into a

“Product selection, alignment and utilization

moment that supports healing and builds trust.

therefore shape clinical practice and patient out-

“Much of the impact still happens out of sight in the careful check-

comes in very real ways,” she continued. “When

ing of expiration dates, the vigilance around product recalls and constant

decisions are grounded in clinical evidence and

coordination with supplier partners to ensure the right products are avail-

aligned with clinician input, variation is reduced,

able,” he continued. “It’s also in the ongoing dialogue with physicians and

The Journal of Healthcare Contracting | June 2026

35



SUPPLY CHAIN AND PATIENT CARE

clinicians, making sure their insights shape deci-

to the patient experience and outcomes. Surgical

sions. So yes, supply chain touches the patient

delays or cancellations/rescheduling can occur if

– not always directly but in ways that shape the

supply chain does not do their part while directly

patient experience.”

affecting patient care.”

AdventHealth’s Farabaugh emphasizes the

Clinical connections reinforce patient con-

clinician-supply chain connection as directly

nections, according to SSM’s Forth.

influencing patient care.

“Supply chain, in collaboration with clini-

“We view our clinicians and care teams as the

cians, directly influences the patient-facing

front line, with direct patient touchpoints,” she

items and product quality that patients see and

said. “Our role is to ensure they are equipped

feel,” Forth said. “While direct interaction is

to deliver care to every patient throughout

not required, intentional influence over patient-

the entire care journey. Clinician alignment is

facing supply choices impacts the patient experi-

essential, whether sourcing the right products, enabling new technology or implementing strategies to stay ahead of disruption. When we are aligned with our caregivers and market teams, the output of supply chain’s work is reflected in patient outcomes and experiences.”

Traditional supply chains concentrate on how the products and services sourced and stocked impact patient care, but there’s more to the equation, according to UChicago Medicine’s Tritch.

“It is important to round and be present in the care spaces to understand how our patients experience the end of the supply chain and fac-

“Whether supply chain directly interacts with patients depends on the organization, but the mindset matters regardless.”

ence and outcomes. As providers, we exist in an ecosystem focused on improving the health of our communities. Supply chain is an integral part of that ecosystem.”

But SSM’s Duggan insists that clinician-supply chain ties make direct patient connections happen.

“Supply chain touches patients directly every day,” she emphasized. “Medications, bed alarms, wound care, etc. If the staff doesn’t have the supplies, the care is not optimized. Clinicians are very creative, but the goal is consistent care 24/7, 365 days a year. Care providers can’t do this without supply chain support.”

tor that into our decision making,” he recom-

Premier’s Radcliff sees supply chain press-

mended. “As supply chains in healthcare evolve

ing direct patient connections based on more of

there are opportunities where supply chain

what the department does.

touches the patient directly in the home care or hospital-at-home setting.”

“Supply chain is increasingly finding opportunities to directly influence patient care, particularly

St. Joseph’s/Candler’s Loya looks to supply

as the function becomes more clinically inte-

chain’s relationship with the operating room/surgi-

grated,” he said. “This can include collaboration

cal services as an indicator of patient connections.

with clinicians on product evaluation, patient

“OR purchasing staff directly meet with the

safety initiatives and value analysis efforts that

OR clinical staff in a huddle [Monday through

ensure the best possible products are used in care

Friday] to assure that medical devices and related

delivery. In these cases, supply chain teams are not

products are obtained for specific patient surger-

only supporting operations but also helping shape

ies,” he noted. “Timing and acquisition are key

decisions that directly affect patient outcomes.”

36

June 2026 | The Journal of Healthcare Contracting

Efforts and achievements vary by organization.

“Whether supply chain directly interacts with patients depends on the organization, but the

both patient and caregiver safety. Appropriate utilization, combined with clinically aligned product selection, reduces unnecessary variation and waste, ensuring that care is delivered as intended and as anticipated. The result is more consistent, efficient and high-quality care.”

mindset matters regardless,” Radcliff continued.

“When supply chain teams understand how

Cost connection

their work affects patient care, it helps reinforce

Vizient’s Mitchell suggests both supply chain and clinicians to keep an eye

purpose and engagement. At Premier, we see

on costs because that directly touches the patient. In fact, economics can

organizations increasingly encouraging supply

hinge on the patient experience.

chain teams to participate in clinical committees

“Supply chain also directly influences the cost of care,” he said. “By

or cross-functional initiatives that bring them

aligning product selection, utilization and contracting strategies, supply

closer to the patient impact of their decisions.

chain reduces unnecessary supply cost, variation, and waste – lowering

This shift helps move supply chain from a

the total cost of delivering care. This is not just a financial outcome for

transactional function to a strategic partner

providers; it has direct implications for patients, as affordability, access and

in patient care.”

financial burden are increasingly tied to the overall cost of care. Access

Vizient’s Staib traces connection supply chain has with patients to the decision-making process in which it participates.

“Supply chain directly touches the patient through the decisions that determine what prod-

and affordability cannot optimally improve without fully leveraging supply chain as a strategic lever.

Supply chain can sometimes get lost in the cracks from a strategic perspective, according to Mitchell.

“Few functions in healthcare simultaneously influence outcomes, clinician

ucts, capital equipment and diagnostic technolo-

performance and cost,” he observed. “Supply chain is one of them, yet it is

gies are used in care – and how those decisions

rarely managed with that level of strategic intent. Despite its impact in care

influence both clinical outcomes and the cost

and cost efficiencies, supply chain is still often treated as a transactional or

of care,” she said. “Through value analysis,

operational function, even though it is one of the largest expense categories

these decisions are evaluated against safety,

in healthcare, second only to labor. That approach is no longer sufficient. If

effectiveness, total cost of care and total cost of

supply chain directly influences outcomes, safety and cost, it must be consis-

ownership. When clinicians are actively engaged,

tently embedded in enterprise strategy at the highest levels.

product selection becomes a clinical decision first to ensure quality, safety and outcomes are

What’s needed is a shift to proactive from reactive thinking, decisionmaking and actions, Mitchell recommends.

established before cost and purchasing consid-

“Leading organizations are aligning caregivers with supply chain

erations are applied. That alignment ensures

strategy – ensuring product decisions, utilization practices and clinical

the tools used at the point of care reflect both

workflows are coordinated and intentional. When that alignment exists,

evidence and how care is actually delivered.

supply chain moves beyond support and becomes a driver of quality,

“These decisions directly impact how clini-

efficiency and long-term sustainability. Execution brings that strategy to

cians deliver care,” she continued. “When clini-

life. Ensuring products, capital equipment, and diagnostic tools are

cians are part of the process – trained and famil-

consistently available at the point of care – whether in the OR, ICU, cath

iar with the products and technologies in use

lab or discharge and home-based settings – eliminates delays, substitutions

– variability decreases, efficiency improves and

and inefficiencies. The result is more predictable, coordinated care delivery

the likelihood of error is reduced, strengthening

that supports both clinical excellence and cost discipline.”

The Journal of Healthcare Contracting | June 2026

37



SUPPLY CHAIN AND PATIENT CARE

Should Patients See the Supply Chain?

From seamless care delivery to behind-the-scenes resilience, industry executives weigh in on whether supply chain should remain unnoticed or play a more visible role in building patient trust.

Patients and visitors to healthcare provider organizations such as hospitals and other non-acute care facilities may not fully recognize and appreciate supply chain’s contributions to their overall experience – and likely won’t complain to supply chain if something were to go wrong.

But should they? Healthcare supply chain executive leaders remain mixed. To some, there’s nothing wrong with an “invisible” supply chain as invisibility shouldn’t matter or detract from supply chain carrying out and fulfilling its mission.

“I don’t think this is something patients should think about or be aware of. They need to able to focus on their care journey and a well-oiled supply chain should be invisible to the patient and just make things happen. A patient may appreciate the convenience of supplies or drugs shipped to their home when needed, so that may delight them, but they shouldn’t have to think about it.”

Eric Tritch, Senior Vice President, Supply Chain & Support Services, UChicago Medicine “Supply chain’s impact is most meaningful to patients when it is experienced, not explained. What matters most is that patients receive safe, reliable care delivered through a thoughtful and seamless experience.

It matters because we want patients to trust the care they receive when they come to our facilities. Trust is built when patients have access to the care they need, when treatments and medications are available, and when the care environment is intentionally designed to support their health.”

Marisa Farabaugh, Senior Vice President and Chief Supply Chain Officer, AdventHealth “Supply chain is part of a larger, connected system working to deliver safe and reliable care. Most of its work happens behind the scenes, but there are simple ways to make its role more visible. Recognition

38

and industry involvement can help build awareness and credibility, both inside and outside the organization. It reinforces that these functions play an important role in the overall care experience.

“At the same time, patients don’t need to understand how supply chain works. What they should notice is that things run smoothly – that the right products are available, the environment is consistent and the care feels coordinated. There are a few areas where patients may see it more directly. Food service, for example, is part of the care experience. A well-prepared, timely meal and a positive interaction can make a difference in how a patient feels during their stay.

“It’s less about explaining supply chain and more about building trust. When care feels organized, consistent and dependable, that’s where its value comes through.”

Steve Downey, Chief Supply Chain and Patient Services Officer, Cleveland Clinic “Patients do not necessarily need to understand the details of supply chain operations, but transparency around how healthcare organizations ensure quality, safety and reliability can build trust. When patients know that hospitals are proactively managing product quality, reducing variability and preparing for potential shortages, it reinforces confidence in the care they receive.

“From a Premier perspective, the goal is not to make supply chain visible for recognition alone, but to

June 2026 | The Journal of Healthcare Contracting

demonstrate that healthcare organizations are investing in resilient operations that support patient care.

This could include sharing information about quality initiatives, product standardization efforts or sustainability programs that contribute to a better patient experience. In many cases, patients may not think about supply chain directly, but they value consistency, safety and reliability, all of which are driven by strong supply chain performance.”

Bruce Radcliff, President, Supply Chain Services, Premier Inc. “In supply chain, we have an intentional focus on our behind-the-scenes service excellence manifesting in visible, felt moments of reliability, confidence and trust. I see this manifesting in two primary buckets – how it impacts those delivering care and how those on the receiving end perceive it. Supply chain should function like a utility for the clinician – they know that they are supported through thoughtful product selection, clinical consistency, quality and safety that allows them to feel confident that the right supplies are going to be available where and when they need them. This allows clinicians to deliver care with confidence and focus that the patient can feel – it builds trust.”

Brad Forth, Chief Supply Chain Officer, SSM Health “Patients should concentrate on getting well and not be worried about their supplies! It is those of us in the business, when we become patients, that have extra anxiety from what we know can go wrong with care delivery.”

Stephanie Duggan, M.D., FACEP, FAAPL, CPE, Chief Clinical Officer, SSM Health “Supply chain is the unsung hero of patient care.

While we provide the acquisition and logistics required to have clinically and non-clinically related

The Journal of Healthcare Contracting | June 2026

supplies to care for patients, patients never know of all the efforts made to provide care. Supply chain people understand their objectives and do not require the patient’s knowledge of those efforts. Satisfaction comes from doing a good job.”

Joe Loya, Director, Purchasing & Distribution, St. Joseph’s/Candler Health System “Patients may never see or think of supply chain, but they experience it every time care is delivered without disruption. Reliability, coordination, and consistency are the visible outcomes of an invisible function. The question is not whether patients should understand supply chain – it is whether they can trust the system behind their care. That trust is built through performance. In an environment where supply disruptions have become more visible, it matters that healthcare organizations can demonstrate resilience, continuity of supply, and responsible cost management. Patients may not see the decisions being made, but they experience the outcomes when care is delayed, substituted, or inconsistent.”

Chad Mitchell, Vice President, Medical/Surgical, Core Essentials, Vizient “Equally important is the confidence clinicians bring into the room. When clinicians trust the products they are using – because they have been rigorously evaluated, aligned to clinical practice, and are familiar with their use – that confidence carries through to the patient experience. Clinically vetted, high-quality products – combined with appropriate utilization and reduced waste – enable more efficient, focused care. Ultimately, patient trust is not just built on the clinician – it is built on the system that supports them.”

Caryn Staib, Vice President, Medical/Surgical, Clinically Preferred and Laboratory, Vizient

39



SUPPLY CHAIN AND PATIENT CARE

How Might Supply Chain Demonstrate its Contributions to Patient Care?

Support vs. shape vs. influence may be separate but equal measures.

Within a healthcare provider organization, products and services are available – both to the clinicians and caregivers who deliver as well as to the patients who receive, reinforcing the connections and integration of components within a system responsible for up to a quarter of the national economy.

Patients come to healthcare facilities – acute and non-acute – seeking service. Clinicians deliver the service to patients. Supply chain equips and fortifies the clinicians to provide service. In that three-pronged equation, the first two elements are known, the third, not so much, if at all.

Whether the third should be evident remains under discussion as well as what supply chain could or should do about demonstrating its contributions.

“Rounding is critical, but we need to be coordinated in a health system how we interact and communicate with patients. We don’t want to have additional folks directly involved or communicated where it may overcomplicate or confuse, but everyone should be able to step in and support and help a patient in the care space regardless of their role and needs to keep their eyes and ears open for our patients’ needs at all times.”

Eric Tritch, Senior Vice President, Supply Chain & Support Services, UChicago Medicine “Engaging directly with clinicians to listen and understand real care experiences helps connect operational decisions to patient outcomes. Operational preparedness, resilience and sustainability planning are also critical. These efforts help protect continuity of care and support healthier communities. This is a discipline our team practices year-round across our system, including through our Consolidated Service Center operations and strategic partnerships.

“Additionally, large-scale initiatives, such as the implementation of our new supply chain management platform, create opportunities for teams to share lessons learned across regions, strengthening consistency and performance across the system.”

Marisa Farabaugh, Senior Vice President and Chief Supply Chain Officer, AdventHealth

40

“One of the best ways to show impact is just being present. Regular rounding in clinical areas helps teams stay connected to what caregivers and patients need.

Participation in hospital events or even occasional behind-the-scenes tours can also help bring visibility to the work. Small visual cues can go a long way, as well.

Simple signage or digital displays can connect everyday supply chain activities to patient care, helping people understand that there’s a system working in the background to support what they’re experiencing. Even things like artwork or photography, showing employees in warehouses, kitchens or distribution roles can help make that connection more tangible.

“Storytelling is another approach – sharing a ‘day in the life’ perspective or following the journey of a product from sourcing to patient use can make the work more relatable. Highlighting employee stories, especially through social media, helps put a human face to roles that are often unseen. Some of the most effective examples are also the most direct. Meal service is a clear touchpoint where consistency, communication and quality are easy to see and feel.”

Steve Downey, Chief Supply Chain and Patient Services Officer, Cleveland Clinic “There are many ways supply chain teams can demonstrate their impact while strengthening collaboration

June 2026 | The Journal of Healthcare Contracting

across the organization. One approach is participating in value analysis committees where supply chain professionals work alongside clinicians to evaluate products based on quality, safety and cost considerations. This collaborative process ensures decisions are grounded in both clinical and operational insights.

“Organizations are also leveraging data and analytics to demonstrate improvements in areas such as reduced delays, improved supply availability and enhanced cost management. Sharing these outcomes internally helps reinforce supply chain’s role in supporting patient care.

Additionally, some organizations are exploring ways to highlight sustainability initiatives, product quality standards or innovation efforts that contribute to a better patient and visitor experience.”

Bruce Radcliff, President, Supply Chain Services, Premier Inc. “Purposeful rounding with clinical leaders, explaining the clinically integrated process for how supply decisions are made, how evidence-based practice influences those decisions, transparency during recalls or shortages and internal storytelling that equips clinicians to confidently explain care decisions to patients are a few examples of how supply chain can demonstrate their contributions.”

Brad Forth, Chief Supply Chain Officer, SSM Health “Supply chain’s interaction with all levels of clinical staff through value analysis assures that not only supply costs are addressed, but quality is as well. Supply chain is just as concerned with patient outcomes as anyone else in the healthcare setting.”

Joe Loya, Director, Purchasing & Distribution, St. Joseph’s/Candler Health System “If supply chain is to be viewed as a strategic contributor, it must demonstrate value in measurable ways. The most meaningful example is the ability to directly link

The Journal of Healthcare Contracting | June 2026

product decisions to clinical outcomes. Through structured value analysis and a clinically integrated supply chain, organizations can connect product utilization to improvements such as reduced infection rates, fewer complications, decreased pressure injuries, and increased efficiency. This is where supply chain moves beyond supporting care and begins actively shaping it.

“That impact requires alignment. Engaging clinicians as active partners – guiding peer-to-peer conversations, sharing data, driving adoption and reinforcing appropriate utilization – ensures increased efficiency. This is where supply chain moves beyond supporting care and begins actively influencing it. Standardization, combined with clinician education and familiarity, reduces waste and variation while improving consistency in care delivery. Understanding whether clinicians are using the products as intended, can help organizations evaluate the value of their purchasing decisions.”

Caryn Staib, Vice President, Medical/Surgical, Clinically Preferred and Laboratory, Vizient “Operational discipline must reinforce clinical intent.

Maintaining continuity of supply, mitigating disruptions, and building resilience through diversified sourcing and inventory strategies are foundational.

Leading organizations are also planning for disruption – not reacting to it. Clinically aligned contingency pathways – identifying appropriate alternative products and defining clear next steps when preferred items are unavailable – ensure that care does not degrade under constraint.

“Supply chain also demonstrates value through financial impact. Leveraging scale, contracting strategies and utilization alignment delivers measurable cost savings.

Increasingly, organizations are connecting these efforts to both financial and clinical outcomes – reinforcing supply chain’s role as a strategic driver of care delivery.”

Chad Mitchell, Vice President, Medical/Surgical, Core Essentials, Vizient

41

Cardinal Health™ Lab Distribution: Products and Services

Lab and supply chain collaboration supports healthcare Clinical labs are central to a complex diagnostic ecosystem built to deliver life-saving results, advance scientific data and help evolve patient care.

Collaboration between lab and supply chain is crucial, and it’s important that healthcare stakeholders understand how to support and supply the lab.

Hospitals and care settings

Supply chain professionals

Clinical laboratory professionals

Manufacturers and vendors

Industry thought leaders

Providers

Patients and families

Diagnostic ecosystem

Distributors

How the diagnostic ecosystem works together These stakeholders rely on lab and supply chain alignment for various reasons. Patients, providers and care settings depend on timely, accurate test results to help guide treatment and streamline workflows. Lab professionals require consistent access to reagents, instruments and quality resources to maintain regulatory standards.

Supply chain teams, distributors and manufacturers work together to ensure reliable product availability, efficient

logistics and innovative technology. Even industry thought leaders depend on this collaboration to advance best practices and strengthen the resilience of diagnostic systems.

To discover each stakeholder’s role and needs from collaboration between lab and supply chain, visit cardinalhealth.com/diagnosticecosystem

Why community matters As a leading laboratory distributor, Cardinal Health can help ensure that the broader healthcare community is aligned with the same goals. To do this successfully, we: •

•

•

Supply organizations with the products they need, with Cardinal Health™ Brand options for savings opportunities, as well as a comprehensive National Brand portfolio Facilitate collaboration between supply chain and diagnostic leaders to help supply continuity, standardization and product preferences Help ensure specimen integrity through cold chain and specialized handling capabilities

•

Collaborate with manufacturers to help organizations receive solutions that drive testing accuracy, speed and clinical relevance

•

Support patient-centered care across diverse care settings

•

Help sustain resilient operations through transparency and supply chain resiliency

•

Offer continuing education webinars to highlight thought leaders’ expertise

Every stakeholder, from phlebotomists to supply chain professionals to clinicians, can affect the quality and reliability of lab data. Cardinal Health helps facilitate strong collaboration between lab and supply chain to help deliver fast turnaround times, reduce disruptions and drive testing quality.

To learn more, contact your Cardinal Health laboratory representative or visit cardinalhealth.com/labdistribution © 2026 Cardinal Health. All Rights Reserved. CARDINAL HEALTH and the Cardinal Health LOGO are trademarks of Cardinal Health and may be registered in the US and/or in other countries. All other trademarks are the property of their respective owners. Patent cardinalhealth.com/patents. Lit. No. 2LAB26-4115917 (04/2026)



SHELF CONFIDENCE

In Greek mythology, Apollo represents the sun, among other things; his twin Artemis represents the moon, among other things. Together, they represent Earth’s day and night, its culture and continuity.

At some point, NASA’s goal is to use subsequent rockets, Artemis II and Artemis III, to establish a human-inhabited moonbase as a precursor to replicating all this eventually on Mars.

Of course, even as Apollo and Artemis may be our vehicles to the stars, those vehicles and their crews, along with those relocating “off planet” as they say to occupy bases, will need a wagon train to the stars (with a feeble nod to Star Trek creator Gene Roddenberry), like we here on Earth need cargo ships, jets, trains and semitrucks.

Supply Chain … in Spaaaaaaaaaace!

NASA’s lunar program signals more than exploration — it hints at a future where logistics extends beyond Earth, redefining how and where supply chains operate.

BY R. DANA BARLOW

Space as a new logistics domain?

In keeping with the Greek mythology theme, they’re going to need Demeter who represents the harvest in terms of farming and provision.

Think supply chain in spaaaaaaaaaace, to borrow from the vocal theme of The Muppet Show’s “Pigs in Space” episodes from 1977-1981.

This makes complete logical and logistical sense (more twinning) because Earth needs supply chain to keep the global, national,

At deadline, NASA’s Artemis Il mission had just become the first

regional, state and local cultures, economies and

voyage to take humans to the farthest reaches of the solar system (even

lifestyles running. To build and subsequently

the galaxy) as it disappeared briefly behind the dark, far side of the moon

maintain and operate the equivalent infrastruc-

that humans don’t see. (Due to its synchronous rotation, the Moon always

ture in space – whether on an orbiting space

shows the same side facing the Earth.)

station, Moonbase or Mars base – these facilities

Contextually, Artemis represents one half of NASA’s overarching lunar

will need supply chain.

exploration program with the other half being Apollo during the 1960s

Think of it as a form of job security.

and 1970s. At least that’s how the federal space agency is retconning all of

At least one company isn’t waiting for moon-

this into some intentional long-term storyboard, conveniently filing away all the progress achieved with the Space Shuttle program in between these exploratory “twins.”

44

shots and beyond to transpire.

Last fall, Space.com reported on a private company, Inversion, that’s looking to deliver

June 2026 | The Journal of Healthcare Contracting

cargo from orbit to anywhere on Earth in less

stopping just short of being able to use fictional

than an hour. Its spacecraft is called “Arc,” but

23rd century “replicators” to create product

don’t think of it as a mythological twin to Ama-

instantly from reusable energy. Yes, we’ll need

zon, even with its own “Prime” directive.

supply data standards implemented and used to

Space.com posted that Arc is “designed to serve as an orbital storehouse and superfast

speed things along.

Perhaps most telling is that during this

delivery system for mission-critical gear” as part

part of the Information Age in the early 21st

of a “logistics network that provides transfor-

century as artificial intelligence (A.I.) feeds what

mative reach, resilience and deterrence for the

German-born American psychiatrist Frederic

United States and its allies.” In fact, Inversion’s

Wertham likely might have titled, “Seduc-

website states that they want to use “space as a

tion of the Indolent,” these efforts emerge

R. Dana Barlow

new logistics domain offering unprecedented

from human ingenuity (just like A.I. but who

serves as a senior

speed and global access.”

wants to nitpick?)

writer and columnist

For healthcare (and beyond) supply chain

So as pundits and policymakers, traditional

for The Journal of

executives, leaders, managers and professionals

and social media and corporate and academic

Healthcare Contracting.

here on Earth, this announcement and inten-

zeitgeist obsess over computers and machines

Barlow has nearly four

tion should serve as the equivalent to American

taking the place of humans, coupled with the

decades of journalistic

attitudes during the “space race” of the 1960s

mindset of goods and services moving from

experience and has

before, during and after Apollo 11 took man to

place to place as if by magic instead of supply

covered healthcare

the moon. Some in the industry recall those hal-

chain operations, we see through these techno-

supply chain issues for

cyon years with fondness and wonder because it

logical advancements that humans still matter –

more than 30 years.

finally achieved what was only depicted in science

as does supply chain.

He can be reached at

fiction at the time.

It was a revolutionary development in our

Like milk does to a body, supply chain does a society good.

rickdanabarlow@ wingfootmedia.biz.

evolutionary growth as a productive society.

Supply chain in space, however, represents an evolutionary development with revolutionary implications.

Think about it. If Inversion’s Arc can successfully accomplish what it intends, then it gives supply chain stakeholders here on Earth a more intriguing “endgame” to pursue. In essence, they’re moving the goalposts farther away. Current imagination suggests that no longer is it enough to produce or source, ship, store, transport and distribute the right products from place to place at the right time, in the right quantity – and of the right quality. Now we must do more of it faster and with complete accuracy,

The Journal of Healthcare Contracting | June 2026

45



HIDA

Leadership Behaviors Powering Better Outcomes From agile decision-making to transparent communication, leaders outline the habits that keep patient care at the center of every supply chain choice.

Across today’s supply chain landscape, the leaders who stand out are the ones who move with agility, put patient impact first, act decisively and communicate transparently.

Leaders in healthcare distribution recently shared with HIDA some of the lessons they have applied to their careers.

What is the most important factor to build supply chain resiliency?

Cardinal Health: The single most important factor to make a supply chain

How do you communicate your decision-making process?

resilient is agility. You have to be able to make decisions on the spot, pivot

Joe Grispo, Chief Sales Officer, B. Braun:

when needed, and respond to unexpected events at a moment’s notice. We

I don’t like analysis paralysis. At some point you

practice our decision-making through advanced scenario planning. Exercis-

have to make a decision, put a stake in the ground

ing that type of muscle within your organization is what leads to better

and move. As a leader, my job is to figure out

outcomes, and better outcomes means better service.

which course we should take. After a decision is

Peter Bennett, Senior Vice President, Global Supply Chain,

made, I provide transparency to all stakehold-

How do you prioritize competing demands?

ers as to the things we’re going to do and why.

Manoj Varughese, Vice President, Distributor Sales & Operations,

If people understand the why, they may not be

Medtronic: Because we are in healthcare, we prioritize looking at the impact

happy, but they’ll understand why we’re going in

on the patient. If it impacts patient care, it always moves to the front of the

a certain direction. And then they’ll get on board,

line and the top of the list.

and we’re all going in the same direction. Trans-

The second thing is looking at the time sensitivity. How much time are we working with each of the competing priorities, and can we sequence them in a way that allows them to fit within the timeline?

The third consideration is the impact from a relational, financial and

parency at the end of the day is really important.

Taken together, these lessons point to a clear leadership mandate for healthcare supply chains: stay agile enough to pivot in real time, keep

operational component. If it has a huge financial impact, obviously it

patient impact at the center when tradeoffs arise,

always is going to get some attention. If it is operational, is it going to

and make timely decisions that you can explain to

disrupt how we work together?

stakeholders. These steps build organizations that

And then relational. Ultimately, we are all still in a relationship business,

earn trust, sustain performance, and ultimately

and how much is this going to impact positively or negatively the relation-

deliver better outcomes for the patients and

ship in terms of how quickly we’re able to respond to those requests?

providers who depend on them.

46

June 2026 | The Journal of Healthcare Contracting

Women in Sourcing for Health Systems

Connects, develops, and elevates women leaders shaping the future of healthcare procurement and supply chains.

To register for our next webinar, visit our website

WISHCouncil.org

Scan to connect



NEWS

Industry News

access across North Carolina. The organizations announced plans to join forces in a move they say would expand specialty care, behavioral health services and virtual care

Scripps’ new $263 million Lusardi Tower now welcoming patients Patients are now being welcomed into the new Lusardi Tower at Scripps

offerings while bringing a projected $2 billion investment into the region.

According to the announcement, the

Health’s Scripps Memorial Hospital Encinitas, marking a major expansion of

partnership would create more than 3,300

healthcare capacity in North San Diego County.

healthcare jobs over the next five years and

The new three-story tower adds advanced technology, expanded surgi-

support the development of new hospitals

cal and critical care services, and dozens of private patient rooms designed

and outpatient facilities. Leaders from both

to improve both care delivery and patient comfort. The facility includes a

systems said the combination is designed

16-bed intensive care unit, 36 private medical/surgical beds, a postpartum

to help meet rising patient demand while

unit connected to the birth pavilion, and a perioperative unit for pre- and

strengthening clinical research, workforce

post-surgical care.

development and access to advanced care

The Lusardi Tower is part of Scripps’ broader “Here for Good” capital

closer to home.

campaign and ongoing master plan to expand healthcare access across the

The proposal would also establish what

region. Hospital leaders said the investment reflects growing demand for

the organizations describe as North Carolina’s

advanced medical services in North County communities.

largest nonprofit behavioral health network, an area of growing concern for healthcare provid-

Intermountain Health launches new Behavioral Health Center

ers nationwide. Atrium Health, part of the

Mental health care in the Salt Lake Valley is getting a major boost thanks to

expanded through similar strategic combina-

an investment by Intermountain Health in a new state-of-the-art Behavior

tions across the Southeast, including partner-

Health Center in Sandy that will significantly increase access to mental

ships with Wake Forest Baptist Health and

health care and specialized services for patients throughout Salt Lake

Atrium Health Floyd in Georgia.

larger Advocate Health system, has previously

County. The new 56-bed Behavioral Health Center at Intermountain Alta June and doubles the number of patient beds for behavioral health care

Wellstar launches rural maternal health network

offered by Intermountain Health.

Wellstar Health System announced recently it is

View Hospital, 9660 South 1300 East in Sandy, opens for patient care in

The new center includes a walk-in behavioral health access center for

expanding access to maternal healthcare in rural

those in crisis, a specialized medical withdrawal management program,

Georgia through a new Rural Community

and a unique Maternal Mental Health Unit for new moms needing mental

Consortium serving nine counties identified as

healthcare – the first of its kind in Utah.

maternity care deserts. Backed by a $1.2 million grant from the U.S. Health Resources and

Proposed partnership could transform North Carolina healthcare

Services Administration, the initiative connects

A proposed strategic combination between Atrium Health and

community organizations to coordinate care and

WakeMed Health & Hospitals could significantly reshape healthcare

support for expectant and new mothers.

48

healthcare providers, public health agencies and

June 2026 | The Journal of Healthcare Contracting

We’re reaching new heights going lower than ever before.

Midmark is the first and only manufacturer in the market to have both a procedure chair and an examination chair that comply with the US Access Board Standards.

Getting to know the standards 01 Seat Height: 17" or lower and 25" or higher 02 Transfer Surface: 21" wide and 17" deep 03 Base Clearance: 26" wide or less 04 Transfer Supports: Compliant to the US Access Board Standards 05 Leg Supports: Support the patient’s thigh, knee and calf

Learn more at: midmark.com/accessible-care

17"

15.5"

Midmark® 631 Procedure Chair

Midmark 626 Barrier-Free® Examination Chair

Scan to view patient transfer.

Source: US Access Board. (2024, July 25). Standards for accessible medical diagnostic equipment. Federal Register, 89(143), 47823-47839. https://www.federalregister.gov/documents/2024/07/25/2024-16266/standards-for-accessible-medical-diagnostic-equipment © 2026 Midmark Corporation, Versailles, Ohio USA

More Than Automation — Itʼs Intelligence with Purpose Healthcare supply chains donʼt need more platforms.

They need intelligence at the point of execution — where decisions are made, risks emerge and outcomes take shape.

When data, technology, and artificial intelligence (AI) work together in the flow of operations, healthcare organizations can move faster, reduce uncertainty and make decisions with greater confidence — at scale.

This is how insight becomes action.

And action transforms into results.

Learn More

Explore how Premier helps organizations drive impact across supply chain, technology, AI, performance improvement and innovation.