Anticlue

B2B Electronic Procurement Apps could save $$$

HFMA estimates that hospital spend 35% to 40% of their operating budget on medical supplies. One also needs to remember that this percentage includes the labor and logistics costs, since a majority of health care organizations have no supply chain management application, and ordering is a labor intensive endeavor that normally lacks standard repeatible procedures. A supply chain management application or even an e-procurement application could have significant cost savings, in one example, with its purchase of materials management and financial applications software, Allina Hospitals & Clinics increased contract purchases from 50 to 75 percent and saved between $4 to $4.5 million in supply costs.