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Supply Chain

The lifespan of medical devices is growing longer as more and more hospitals are turning to device reprocessing to cut costs, reduce waste and maximize potential use of these items.

Two former sales representatives of a medical device company in New Jersey admitted their roles in a fraud scheme that overcharged hospitals by more than $800,000, according to an NJ.com report.

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If the number of drug recalls this year continues at its current rate, 2014 could bring in the highest number of recalls to date, according to a report from the Regulatory Affairs Professionals Society.

Those years of begrudgingly picking up and organizing rooms may pay off in the materials management arena, as a cluttered supply closet could be detrimental to cost savings and even patient safety.

Hospitals and health systems utilize numerous vendors to assist with daily operations, and many times, healthcare organizations can realize saving by reviewing vendor contracts.

San Francisco-based pharmaceutical distributor McKesson has agreed to pay $18 million to settle allegations that it failed to comply with shipping and handling requirements of its vaccines, thereby violating its contract with the Centers for Disease Control and Prevention.

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