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Case Study: Supply Chain Transformation in the Mercy Health System
Anne W Snowdon1, Betty J Rocchio2
1A professor of Strategy and Entrepreneurship, the chair of the World Health Innovation Network and CEO of SCAN Health, at the Odette School of Business at the University of Windsor.
Abstract:
The Mercy case study documents evidence of a clinically integrated supply chain strategy implemented in the peri-operative programs in three of the 46 hospitals in the Mercy system. Mercy became the first US health system to achieve "the perfect order," a supply chain industry standard with end-to-end integration of supply chain best practice in the Mercy system. To date, the Mercy strategy has demonstrated revenue growth of $8 billion, a 70% reduction in Never Events, a 33.3% reduction in supplies cost/case and a 29.5% reduction in labour costs/case in the perioperative programs in three hospitals.
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