Skip to main content

Hospitals in the US annually waste US$25.4bn on supply chain

Navigant urges hospitals to use accountable data in supply chains

Hospitals in the US are expected to waste US$25.4bn on supply chain by the end of 2018, according to Navigant.

The consulting firm’s report claims that the figure has risen by 10.2%, or $2.4bn, from 2017’s figures.

The study, which addressed 2,300 hospitals across the US, found that each institution could save around $11mn per year if it transformed its supply chain.

The report claims that its findings were mostly applicable to many hospitals, despite size, location, and whether it was a profit or non-profit organisation.


“At a time when operating margins continue to decline, we have found that hospital leadership not fully investing in their supply chain are missing changes to optimize the financial potential of their organizations,” remarked Rob Austin, Director at Navigant.

Navigant claims that actionable data could help the establishments save within supply chains by accounting costs to patient outcomes.

Data would also require the investment of hiring and training staff to analyse the data, but overall the financing would cut costs, the report argues.

The consultancy suggests that hospitals should also reduce price variations, focusing on cheaper but equally as effective medication.


Supply Chain Digital Weekly