Utilization Management The Missing Link in Supply Expense Management Do you have all of your supply expense management bases covered?
It wasn’t so long ago that price and standardization was king in
supply chain management circles. All you needed to do was join one or two GPO’s and then maximize your compliance, and you where home free. Then, products, services and technologies became so complex that value analysis became in vogue to decide what was the most appropriate product, service or technology to purchase. Now, more and more supply chain professions are acknowledging that there is a missing link in their supply expense management strategies and tactics; attacking their utilization misalignments. At a recent AHRMM’s Executive Thought Leaders Forum, participants emphatically stated that “Even with the lowest possible price, if utilization
is inappropriate the cost will remain too high.” Supply chain leaders also noted that with commodities, there is a point at which the price is as low as it can possible be, and they must look at reducing utilization to capitalize on further savings. Well, it looks like the jury has given its verdict; utilization management is Spring 2013
Healthcare Value Analysis Magazine
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