One of the more recent topics that has come up is how expensive American healthcare is becoming. In 2019, U.S. healthcare spending reached the astounding high of $3.8 trillion. This number is still rising – it is projected that from 2020 to 2027 hospital spending will increase by 5.7% each year. Even with all this extra spent money, however, most hospitals only see minimal profit margins from patient care. In 2019, revenues for nonprofit hospitals grew more slowly than expenses.
Hospitals are struggling for a number of reasons. Lack of efficiency in hospital care is another contributing factor in struggling hospitals; waste can amount up to 20% of total healthcare spending. Most of these causes, however, can be solved with the implementation of supply chain management; adopting supply chain efficiencies from other industries could save the healthcare sector up to $130 billion in otherwise wasted money.
Find out how hospitals, using supply chain management, can save time and money here.