Companies Managing the Healthcare Supply Chain in a New Way. Healthcare supply chain management involves obtaining resources, managing supplies, and delivering goods and services to providers and patients. As part of the process, physical goods and information about medical products and services usually go through a number of independent stakeholders, including manufacturers, insurance companies, hospitals, providers, group purchasing organizations, and several regulatory agencies.
The supply chain represents 40 to 45 percent of hospital or healthcare system operating expense, second only to labor costs. This mix is expected to keep shifting, with the supply chain potentially overtaking labor costs within the next 5 years.
The healthcare supply chain has historically not been transparent in terms of pricing and product comparative data. A growing number of companies have targeted the healthcare supply chain for disruption to take advantage of industry changes to value-based care and payment, physician ownership, health care consolidation, and the ease of online transactions.
Group purchasing organizations (GPOs) have been overdue for consolidation and evolution as market participants develop new value propositions. The leading GPOs have developed over the years in ways that now make it necessary to develop revenue streams beyond group purchasing.
The traditional group purchasing model has many industry stakeholders questioning the role, objectivity, and value of GPOs. The healthcare supply chain is changing, due to hospital consolidation, contracting evolution and transparency. These changes have opened the door to new business model GPOs, and innovative contracting and sourcing solutions.
The new companies disrupting the healthcare supply chain include giants like Amazon Business, as well as numerous smaller competitors. This report introduces the reader to these companies and provides a brief profile on each.
- Amazon Business
- Coupa Software, Inc.
- Curvo Labs
- Greenlight Medical
- Icertis Contract Management
- Procured Health
- Prodigo Solutions
- riskmethods, Inc.
- Tradeshift Inc.