In the evolving landscape of the U.S. healthcare supply chain, recent insights from John Strong, Chief Consulting Officer and Co-founder of Access Strategy Partners Inc., reveal significant impacts of inflation on med/surg supplies and pharmaceuticals. Strong's analysis indicates that over the past two years, the costs of these essential products have surged by approximately 21% to 22%. While there’s a sign of improvement with these percentage increases beginning to decrease, the current price hikes still build upon the previous escalations.
Strong highlights the intense pressure healthcare buyers face as they seek to economise on supply expenditures. "People are desperate to save wherever they can on supply purchases," he stated. In the current climate, this urgency has resulted in a pronounced focus on price, particularly for lower-cost items that are frequently used, such as disposables. These items are often overlooked when it comes to value analysis, as their assumed lower cost yields minimal attention. However, Strong regards this tendency as a critical oversight, pointing out that "this is where a lot of the price creep has occurred in my opinion."
He elaborates that although smaller purchases may appear inconsequential, they often contribute disproportionately to overall spending, especially as Group Purchasing Organisations (GPOs) manage contracts for such items. Despite the GPOs’ best intentions, several substantial price increases have nonetheless emerged, affecting hospitals and their operational costs. As Strong succinctly puts it, "inflation has hurt everybody, including hospitals with their purchases."
As 2025 approaches, Strong's ongoing analysis will continue to shed light on the global healthcare supply chain's challenges and opportunities, reflecting a sector increasingly pressured to adapt to the financial realities imposed by inflationary trends. This dialogue with Repertoire Magazine not only paints a vivid picture of the current issues but also sets the stage for a broader understanding of how emerging technologies and trends in automation could potentially reshape business practices within the healthcare supply ecosystem.
Source: Noah Wire Services