Inflation has caused healthcare input costs to surge
U.S. inflation hit a 40-year high in 2021, and its impact has driven up healthcare costs significantly. Nationally, healthcare spending is expected to increase by $370 billion within the next five years.¹ Additionally, supply chain issues are causing non-labor costs to increase by up to $110 billion.²
Increase hospital profitability by optimizing revenue-generating areas
Clearly, this is a crucial time for hospitals to look at their greatest revenue-generating areas. One such area is the operating room (OR), which can account for up to 60% of a hospital’s revenue (and 35% to 40% of its expenses). In other words, effectively optimizing this critical clinical area can improve hospital financial performance.
Research shows 69% of clinicians have experienced canceled procedures, and 66% have lacked products for a procedure. With that in mind, one way to ensure steady or increased revenue is to ensure that scheduled procedures go as planned. Furthermore, hospitals need the right products, in the right place, at the right time. To achieve this aim, hospitals must create a real-time health system (RTHS) supported by technology-based supply chain solutions.
How to create a real-time health system
On average, it takes $11.7M in new revenue to have the same impact as a $100,000 reduction in operating costs.³ Although the clinical supply chain is often overlooked as a potential area for innovation, it has the greatest impact on reducing overall operating costs.
VPL helps improve hospital financial performance by providing greater visibility into the supply chain. Health systems use our software to recoup money lost to canceled procedures, wasted time, and product obsolescence. To put it into perspective, our technology can guarantee savings of $1.1M to $1.4 M in the first year alone. It’s been a rough couple of years, but with the right platform in place, all hospitals can stabilize their financials.
Request a quote from our smart supply chain platform to learn how we can help you optimize the most profitable areas of your hospital, including OR and specialty pharmacy.