Hospitals are spending about $10 million more a year in the supply chain than is necessary, according to a new Navigant study.
The study looked at 2,300 hospitals and their supply spend and found the providers could reduce their annual supply budgets by $23 billion, or about $10 million per year, per hospital, according to Alven Weil of Navigant. This is a savings of about 18 percent.
When supply chain represents 30 percent of hospital operations, ranking second only to labor in cost, 18 percent represents a significant amount of savings.
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