SpendEdge, a provider of healthcare supply chain management solutions, has completed its latest healthcare supply chain predictions for 2020.
It is expected that there will be a decline in profit margins next year as supply chain inefficiencies continue to be one of the biggest challenges in the healthcare industry. Medicare and Medicaid reforms and labor are consuming a third of the budget and creating the need from strong supply chain strategies. Companies will need to consider supply chains as a way to increase profits while developing models that reduce costs.
Meanwhile, the healthcare sector is predicted to have over 100 individual facility bankruptcies in the coming year. Several facilities require funding to ensure sustainability, while the growing number of IDNs in crowded market spaces add to the troubles.
Blockchain is expected to be implemented next year as the FDA has selected four tier 1 companies to support the US Drug Supply Chain Security Act. These companies will develop an electronic interoperable system to trace certain prescription drugs. A shared blockchain network will be created by each company to allow real-time monitoring of products. The shared blockchain network will increase supply chain transparency and improve inventory management.
However, a decline in profit margins is inevitable. Organizations will see a decline in profit margins because of supply chains being unable to optimize financial potential. Companies will require effective healthcare supply chain strategies to reduce waste, recover costs and gain buying power in the region by collaborating with other hospitals and manufacturers.