54 Statistics on Hospital Supply Chain Efficiency

Outside of labor costs, the supply chain eats the largest chunk of change out of a hospital's operating budget, and hospital CFOs are continually looking for ways to maximize savings and efficiency within this controllable process.

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The Health Industry Distributors Association recently released a study called "The Hospital Procurement Study," which was conducted by PricewaterhouseCoopers. The report compared the activities and related costs associated with commercial distributors versus manufacturers based on data and interviews with 32 hospitals. Here are 54 statistics from the study.

Note: All statistics are averages.

Category

Hospital With Less
Than 400 Beds

Hospital With 400
Beds or More

Patient days

63,807

97,420

Discharges

14,121

71,522

Case mix index

1.51

1.65

Operating expense

$289.4 million

$851.6 million

Med-surg supply expense

$31.9 million

$110.5 million

Number of OR cases per year

11,042

18,609

Number of cath lab procedures per year

2,898

11,323

Number of billable tests per year

762,820

1.59 million

Number of supply chain
management FTEs

19.75

46




Category

Hospital With Less Than 300 Beds

Hospital With 300 to 500 Beds

Hospital With 500 Beds or More

Hourly salary for purchasing staff

$35.29

$34.84

$31.06

Buyer hours per week spent on distributor purchasing

22

12.25

40

Buyer hours per week spent on manufacturer purchasing

64.5

35.75

112

Hourly salary for receiving staff

$20.09

$19.50

$19.32

Hours per day spent receiving
from distributors

2.9

5.4

2.67

Hours per day spent receiving
from manufacturers

5.2

9.6

8.67

Total annual dollars spent
with distributors

$4.2 million

$7.1 million

$78.4 million

Total annual dollars spent
with manufacturers

$24.4 million

$58.2 million

$149.6 million

Number of procurement/ordering
lines to distributors annually

26,054

32,881

196,391

Number of procurement/ordering
lines to manufacturers annually

27,802

48,591

128,181

Use of electronic requisitioning

100 percent

100 percent

100 percent

Use of automated distribution
unit system

84 percent

83 percent

67 percent


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