4 Key Points Supply Chain Managers Should Know About Utilization Management

1. It’s the future of supply chain expense management.

Price and standardization have been the primary supply chain cost containment strategies for decades. Now that these sources are waning, there is nowhere else to go for savings other than utilization management.

2. It’s a problem that's bigger than you might think.

We estimate that one in four products, services, and technologies you are buying right now has a utilization misalignment. Meaning, it is costing you on average 26% more to employ these commodities than it is costing your peers. Left untouched, they will cause real damage to your hospital’s bottom line.

3. It’s eating away at your healthcare organization’s bottom line.

For every dollar you save in price, you could be losing $2, $3 or even $4 in utilization misalignments. For example, you might get a great price on I.V. catheters, but if your clinicians are using more than 2.3 per patient to get the job done, it’s costing you more than it should be on just this one product.  

4. It’s easier to save when you know where to look.

Utilization savings are different than price savings because you can’t see them with the naked eye! That’s why you need an advanced power tool to uncover these hidden savings. Then, it is very easy to eliminate them!