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R W Sommers1, W A Chapelle, J Wooster

  • 1University of Michigan Medical Center, Ann Arbor.

Journal of Healthcare Materiel Management
|December 10, 1989
PubMed
Summary
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Hospital purchasing management·1983

Implementing a stockless purchasing program required three years and team collaboration. This initiative highlights the significant impact of material management departments on healthcare cost containment.

Area of Science:

  • Healthcare Administration
  • Supply Chain Management
  • Operations Management

Background:

  • The healthcare industry faces increasing pressure for cost containment.
  • Effective material management is crucial for operational efficiency and financial health in hospitals.
  • Previous supply chain models may not fully address cost reduction goals.

Purpose of the Study:

  • To detail the planning and implementation of an on-site, stockless purchasing/supply program.
  • To demonstrate the role of a material management department in achieving significant cost containment.
  • To emphasize the importance of departmental credibility and customer support in project success.

Main Methods:

  • A multi-year project involving administrative, clerical, and line workers.

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  • Completion of a series of defined objectives for program realization.
  • Focus on cost containment through innovative supply chain strategies.

    • Main Results:

    • Successful implementation of an on-site project over three years.
    • Demonstrated significant cost containment efforts within the material management department.
    • Strengthened departmental credibility and customer support.

    Conclusions:

    • Material management departments play a vital role in healthcare cost containment.
    • Creative and innovative programs are essential for improving an institution's bottom line.
    • The project represents a significant step towards a total stockless purchasing/supply program.