Removing costs from the health care supply chain: lessons from mass retail

Improved supply-chain management and high-volume purchasing have benefited other industries. This same approach could also reduce health care costs. Streamlining layers in the supply chain and using purchasing volume to reduce prices can save money and may improve care. Providing access to in-store health clinics and low-cost generic drugs are examples of how this approach is being tested by mass retailers. We examine lessons learned from these and similar initiatives and identify opportunities to cut the costs of generic and name-brand drugs, medical supplies, over-the-counter remedies, and vision care.