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Concordance Healthcare Solutions Blog

Reducing Hospice Cost of Care through Medical Product Standardization

Reducing Hospice Cost of Care through Medical Product Standardization

Posted: 9/7/17 9:00 AM    Author: Concordance Healthcare Solutions
  

Implementing an approach that reduces the complexity of product sourcing, lessens the administrative workload for medical supplies procurement and serves to reduce product costs is possible through standardization. As enticing as it may be to allow individual healthcare personnel to choose the particular products they would like to use for their patients, it may be more cost effective to restrict choices and standardize on fewer product options.

Product Proliferation or Standardization

Standardizing on a range of products for each application allows hospices to work with suppliers to obtain better prices, maintain the appropriate number of products on hand and provide the same high quality of care to each patient agency wide. While each hospice clinician and doctor develops specific product preferences based on past experience, and prefer to use those items for their patients, the proliferation of products brought about by such an approach is expensive. It also limits specific purchase quantities and creates potential inventory control problems. Of course, if a specific product offers unique benefits, it should be considered as an exception. Other benefits of medical product standardization over proliferation include:

  • Simplified inventory management
  • Lower unit costs
  • Consistency of care
  • Reduced need for staff cross training
  • Facilitated regular deliveries
  • Decreased number of vendors
  • Reduced administrative workload

Reducing Hospice Care Costs via Established Formularies

The nature of hospice reimbursement means it's essential that supply costs are carefully controlled while ensuring quality products. One of the most effective methods of achieving this is through customized product formularies which:

  • Reduce the number of different products on hand
  • Provide consistency of care
  • Limit waste

Reducing Hospice Care Costs via GPO Membership

Another way of reducing costs is to link with a group purchasing organization (GPO) to negotiate reduced supply costs from the vendors. As indicated by this article, the practical benefits of standardization and working through a GPO include:

  • Lower medical supply costs
  • Better pricing for products not included in formulary
  • Fewer vendors
  • Additional savings potential by achieving high GPO contract compliance

Concordance Healthcare Solutions, one of the largest healthcare distributors in the country, has the buying power to ensure you obtain the products you need at the best prices. Additionally, Concordance is focused on providing only the highest quality products while reducing the cost of patient care through a flexible and personalized methodology. Benefits of working with the Concordance Hospice Division include:

  • Customized product formularies: Product formularies can be customized to suit individual hospice and patient needs, includes protocols and in-service training.
  • Hospice-specific contracts: Hospice contracts are designed to suit the unique needs of hospices.
  • Authorized GPO distributor: We distribute for all major GPOs.
  • Access to over 750 hospice-related manufacturers: We source the best products from a host of manufacturers.
  • Modern warehousing facilities: We provide local warehousing facilities with unmatched logistical support.
  • Prompt deliveries: In most instances, deliveries will be made during the next working day direct to the hospice or patient's home.
  • Advanced software support: We offer a suite of web-based software solutions designed to simplify ordering, expedite delivery, manage inventory and monitor costs.

4 Innovative Solutions for Hospice Care Inventory Control