Supply Chain Metrics That Matter: A Focus on Hospitals

Version 2

    Using Financial Data from Corporate Annual Reports to Better Understand the Hospital Supply Chain


    Published By Abby Mayer, Research Associate, Supply Chain Insights LLC, 01/06/2013).


    Executive Overview

    Growth is slowing. Profitability is tougher. Compliance mandates are growing. How do companies balance the goals for value-based outcomes for health and wellness with costs? In this environment, supply chain matters more than ever.

    In this report, we share insights on healthcare supply chains. Grown out of the offices of procurement, the supply chain function of the hospital is still in its infancy; but based on increasing business requirements and complexity, it is only beginning to show its true potential.


    Growth: Futures are Uncertain.

    The hospital administrator is facing many challenges. Growth is slowing and pressures are growing. The question is how to balance patient outcomes with better cost management. How does a hospital move forward with an uncertain future? And, what will be the impact of healthcare reform?

    In table 1, we list top line growth over the past decade for four companies operating within the hospital industry. While there are ups and downs, the general trend is downward.