In a healthcare climate where cost-cutting is the top priority, hospital administrators are exploring all potential tools to improve care while reducing costs. The National Academy of Medicine recently determined that hospitals spend over $750 million annually on inefficient and unnecessary services and care (Kakad, 2017). One potential solution for the budgetary problems is the use of predictive analytics tools.
What Predictive Analysis Can Do to Change Hospital Supply Chain
Emerging predictive analytics tools aim to determine the likelihood of scenarios for individual patients, and adjust treatment and services accordingly. Predictive analytics can be used to forecast scenarios in which a patient is readmitted to a hospital, or determine the chances of a patient developing an infection, and using this data allows physicians to employ optimal treatment methods (Kakad, 2017). As predictive analytics is implemented in hospitals nationwide, it will inevitably affect hospital supply chain.
According to Bruce Johnson, President and CEO of Global Healthcare Exchange (GHX),
“Healthcare supply chain continues to be at a pivotal juncture, taking increased advantage of advanced technology to deliver affordable value-based care by accelerating efficiencies and improving access to quality data for decision-making (Belliveau, 2017).”
With predictive analytics in play, hospitals can obtain a more accurate picture of how many patients will be readmitted, and what complications to care are likely to occur. This gives hospitals a more accurate picture of the quantity of supplies to have on stock, as well as help to connect the larger puzzle of what devices contribute to optimal outcomes.
A recent GHX survey determined that over two-thirds of hospital supply chain administrators find their processes to be inefficient (Belliveau, 2017). Connecting predictive analytics tools to supply chain management provides better transparency into the value of products moving through supply chain. GreenLight Medical’s supply chain value analysis management system can contribute even further in conjunction with predictive analytics to efficiencies by streamlining the value analysis process for hospital administration.
Once medical representatives submit new product requests through the GreenLight portal, all product data are viewed by the value analysis team plus other key stakeholders. GreenLight Medical software increases physician engagement by requiring physicians to show their support for all products submitted for review before the value analysis team can evaluate them. This increases efficiency by eliminating unwanted products before wasting people’s’ time, and with all product information compiled in a cloud-based software, comparing product pricing and value is easier than ever.
The combination of emerging predictive analytics tools, and existing supply chain management software has the potential to revolutionize hospital supply chain. Predictive analytics will allow hospitals to more accurately determine patient health trends, and ultimately what supplies will be needed. Supply chain management tools will then ensure that the hospital manages necessary devices and supplies more efficiently. Together, opportunities will arise for hospital supply chains to drastically reduce expenses.
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Belliveau, R. (2017, January 27). Predictive Analytics Top Healthcare Supply Chain Priorities. Retrieved March 14, 2018, from https://revcycleintelligence.com/news/predictive-analytics-top-healthcare-supply-chain-priorities
Kakad, M., MD. (2017, June 23). Getting Buy-In for Predictive Analytics in Health Care. Retrieved March 14, 2018, from https://hbr.org/2017/06/getting-buy-in-for-predictive-analytics-in-health-care