What challenges are ASCs facing amidst market growth?
Ambulatory Surgery Centers (ASCs) are struggling with rising costs, staffing shortages, and inventory management. However, a successful ASC supply chain management strategy holds the key to turning things around.
Let us start by identifying the three major challenges ASCs are currently facing that could impact revenue growth:
- Supply chain costs
- Staff recruitment and retention
- Operational efficiency
Now let’s break down the challenges.
Supply chain costs
First and foremost, healthcare supply chain costs are out of control.
A recent survey by ASCA reported 61% of people saw 10-24% increases in costs for medical supplies and equipment.
At no surprise, supply chain disruption is the culprit of the price surges.
The graph below shows how much ASCs are paying overall for medical supplies and equipment this year:
In the same survey, 77% of respondents blamed those surging costs on supply chain disruption.
The graph below shows the top factors contributing to the increase in overall prices for medical supplies, equipment, and drugs at ASCs:
Staff recruitment and retention
Secondly, staffing challenges exacerbate the problem and have cost implications.
In a different ASCA survey, 98% of people report staffing challenges, with 33% citing burnout as a driving factor of the shortages.
The chart below breaks down the primary reasons for staffing challenges at ASCs:
Lastly, not only are supply chain disruptions costly, they also threaten staff satisfaction and waste valuable time.
A separate study conducted by VPL measured the time staff spends tracking down orders:
- Buyers can spend 50% or more of their day doing so
- Clinical staff can spend 10% or more of their day doing so
So, what does this mean for ASCs?
In conclusion, these datapoints show us how critical it is for ASCs to reclaim control of their supply chains.
We can see that issues related to supply chain disruptions, rising costs of medical equipment, and staff shortages are all making it difficult for the ambulatory surgery market to thrive.
However, ASCs can move towards a more resilient supply chain with technology-based solutions to ensure sustainability and growth.
How, you may ask? VPL has a supply chain visibility platform that offers:
- 20% or more cost savings
- Choice of carrier (UPS, FedEx, USPS)
- Real-time order status with industry’s only track-and-trace tool
- Exposed supplier fees
- Seamless charge allocation by facility
- Quick and easy setup
In the healthcare market specifically, weak supply chains present a serious loss of productivity, revenue, and a threat to high-quality care. Learn more about how technology can help reduce costs and increase staff satisfaction at www.getvpl.com.
If you want to share this information or save it for a rainy day, download the full ASC supply chain management infographic at your convenience: ASC Headwinds Amidst Market Growth