Inflation continues to impact the healthcare industry
As the U.S. economy continues to struggle with inflation, hospitals and health systems are feeling the squeeze.
According to Kaufman Hall’s December 2022 National Hospital Flash Report, hospitals saw margins improve last November, but median hospital margins remained negative.
Now, with the annual inflation rate for the U.S. at 7.7% for the 12 months ending October 2022, according to the U.S. Labor Department, most hospitals will be looking for ways to reduce expenses.
Along with ongoing supply chain disruptions and the increased prices of medical products and equipment, labor costs are also on the rise. Clinician burnout is leading to high turnover rates and reliance on contract clinicians and staff.
The effect of all this is summed up by an August 2022 article on hfma.org. According to Kerry Jessani, head of healthcare, higher education, and non-profit banking for JPMorgan Chase’s middle market banking and specialized industries business, “Inflation is impacting [health systems] broadly because they don’t control revenue. It’s all negotiated with insurance companies or the government. Revenue is fixed and costs for labor, supplies, and everything else are going up.”
This means health systems need to find ways to control costs where they can and optimize revenue-generating areas like the OR and specialty pharmacy.
An inefficiently run operating room can lead to procedure cancellations, long waiting lists, and readmissions, none of which are beneficial to the bottom line. And specialty pharmacies risk patient leakage if they’re not getting the meds their physicians want and shipping them accurately and quickly.
Digitally transform your supply chain to reduce the impact of inflation
It’s a time of challenge to be sure, but with challenge comes innovation. VPL is leading the way in terms of helping health systems find new ways to save money, mitigate loss, and improve the bottom line.
Our cloud-based Supply Chain Visibility Platform optimizes shipping processes, tracks products, and monitors performance for both inbound and outbound. The software allows health systems to choose the right carrier for every shipment. Additionally, it offers seamless electronic invoicing that ensures every dollar is accounted for. By collecting data and managing costs, we unlock hidden savings opportunities that can save you thousands.
VPL will help you mitigate the impact of healthcare supply chain inflation and create a more profitable supply chain.