Gartner, a research and advisory firm that annually ranks health system supply chains, highlighted cost control as a key priority among its top performers for 2025.
Health systems facing continued margin pressure implemented large-scale savings initiatives through consolidated service centers, automation and sourcing strategy, according to the “Healthcare Supply Chain Top 25 for 2025” report, published Nov. 19. Several organizations captured tens of millions to hundreds of millions of dollars in supply expense savings and cost avoidance over the past year alone.
The following four systems in this year’s ranking reported some of the most substantial supply chain savings and projected savings:
1. Intermountain Health
Salt Lake City-based Intermountain Health achieved more than $230 million in combined savings and cost avoidance, according to Gartner’s report. The health system attributed $50 million in direct supply expense savings and $181 million in cost avoidance to its use of procedural analytics and its sourcing center of excellence.
2. Bon Secours Mercy Health
Through its group purchasing organization-independent supply chain arm, Advantus Health Partners, Cincinnati-based Bon Secours Mercy Health has saved $165 million since 2021. Advantus now manages more than $2.2 billion in spend across more than 600 contracts and has expanded into non-acute, pharmacy and purchased services.
3. Corewell Health
Michigan-based Corewell Health plans to construct a 311,000-square-foot consolidated service center in Wyoming, Mich. The project, which would merge two existing facilities, is projected to save the system more than $40 million over the next 15 years.
4. Northwestern Medicine
Northwestern Medicine opened a 60,000-square-foot Supply Chain Operating Center in Grayslake, Ill., to centralize warehouse and distribution operations for drugs and IT equipment. At full capacity, the facility is expected to reduce pharmacy costs by $9 million annually.
