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Related Experiment Videos

Improving materials management through re-engineering.

C M Born1, D Marino

  • 1Texas Children's Hospital, Houston, USA.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|August 6, 1995
PubMed
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Healthcare supply costs are high, but re-engineering materials management can reduce expenses. This process involves six steps to improve efficiency and cut costs in healthcare facilities.

Area of Science:

  • Healthcare Administration
  • Operations Management

Background:

  • Supply chain activities represent a significant portion of healthcare operating costs.
  • Traditional fee-for-service models incentivized abundant supply availability over cost control.

Purpose of the Study:

  • To explore the benefits of re-engineering materials management processes in healthcare facilities.
  • To identify cost-reduction opportunities within healthcare supply chains.

Main Methods:

  • The study outlines a six-step re-engineering process: recognizing the need for change, establishing guidelines, forming a team, analyzing current processes and costs, redesigning processes, and implementing changes.
  • A case study is presented to illustrate the application and benefits of this re-engineering approach.

Main Results:

Related Experiment Videos

  • Re-engineering materials management offers a strategic approach to reduce supply costs.
  • Implementing a structured re-engineering process can lead to significant operational efficiencies.

Conclusions:

  • Healthcare facilities must adapt to changing reimbursement models by actively managing and reducing supply chain expenses.
  • Re-engineering provides a viable framework for optimizing materials management and achieving cost savings.