How health systems are winning physician buy-in on cost cuts

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Supply chain leaders say the key to gaining physician support for product standardization is not leading with cost savings — it is leading with data, transparency and collaboration. 

Across health systems, executives described a common shift away from telling physicians which products to use and toward involving them early in decisions, sharing objective performance data and framing discussions around patient outcomes rather than budgets.

Les Feka, director of supply chain at Birmingham, Ala.-based Baptist Health Princeton Hospital, said successful standardization efforts begin by treating physicians as partners.

Rather than approaching conversations with predetermined conclusions, he said supply chain leaders should present “clean, unfiltered data” and allow the evidence to drive discussions. That transparency helps build trust and avoids the perception that financial goals are overriding clinical judgment.

Mr. Feka also emphasized the importance of operational credibility. If supply chain teams are struggling with product availability, he said, physicians are unlikely to support new standardization initiatives.

“There’s nothing worse than laying out an opportunity to have it shot down because the doctor starts asking why the hospital keeps running out of this or that,” he said.

At Shelbyville, Ind.-based Major Health Partners, Don Barton, chief technical officer and director of supply chain management, said physician alignment improves when conversations focus on overall value instead of price alone.

His team evaluates products based on clinical outcomes, patient and staff safety, operating room efficiency, length of stay and whether a lower-cost alternative delivers equivalent clinical performance.

“When decisions are framed around objective clinical and financial metrics that benefit both the patient and the organization, physicians and supply chain leaders are much more likely to reach the same conclusion,” he said.

Several leaders also pointed to data transparency as one of the most effective ways to influence physician behavior.

At Minneapolis-based Allina Health, Thomas Lubotsky, supply chain vice president and chief supply chain officer, said the health system combined its clinical-supply chain dyad model with a mobile analytics platform that gives surgeons visibility into their own supply utilization, peer comparisons and use of non-preferred products.

The approach removed friction from standardization efforts while encouraging physicians to become stronger financial stewards, he said.

Luke Martin, administrative director of supply chain management at San Angelo, Texas-based Shannon Health, said physician engagement starts with clearly explaining why cost-reduction initiatives matter.

His organization shares supplier proposals, contract language and key performance indicators with physicians throughout the process, reinforcing that the goal is improving value for patients, the community and the health system rather than simply lowering costs.

Similarly, Cindy Gueltzow, vice president of supply chain services at Louisville, Ky.-based Baptist Health, said transparent communication and active listening have been central to her organization’s success.

Rather than presenting decisions as final, her team works alongside physicians to determine appropriate adoption of new technology, identify standardization opportunities and maximize contract value.

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