Supply chain tip of the week: Don't assume supply chain parity

Many health systems struggle to standardize products and contract prices across their facilities.

Tom Fox, a managing director at healthcare consulting firm Novia Strategies, shared the following tip with Becker's Hospital Review.

"With respect to large integrated delivery networks, there is a general expectation that standardized supply contract prices are loaded into materials management information systems and followed properly for all locations within a multi-hospital healthcare system. However, a review of these prices across the enterprise will often identify fairly significant differences in pricing that contractually should not occur. This is particularly prevalent in large integrated delivery networks that have gone through recent mergers and acquisitions requiring the consolidation of multiple items masters.  

These inconsistencies can be identified by conducting a review of prices for each item number at each location across an enterprise, as well as a review of the item master to identify duplicate item numbers for the same product. By identifying and resolving these price discrepancies, health systems can gain considerable savings."

If you would like to submit a supply chain tip, please email Mackenzie Bean at

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