How to identify the supply costs spend reports cannot see — Lessons from UChicago Medicine

This webinar is on-demand and can be viewed at your convenience.

  • Allen Passerallo

    Presenter

    Allen Passerallo

    Senior Vice President, Physician Preference

    Vizient Inc.

  • Ian O’Malley

    Presenter

    Ian O’Malley

    Executive Director, Strategic Sourcing

    University of Chicago Medicine

Supply savings work tends to end at the contract. Price is negotiated, the line item improves and the program reports a win.

Underneath that win, two physicians perform the same procedure and consume different supplies at different cost. Reimbursement does not follow the difference. Across a full procedural portfolio, those decisions accumulate into a margin effect no one has measured and no one owns — and the spend report is the wrong instrument to find it, because it aggregates away the detail where the money sits.

Procedure- and physician-level data closes that distance. Ian O’Malley, executive director of strategic sourcing at University of Chicago Medicine, shows what that level of detail makes visible and how it holds up when it meets resistance.

Learnings include:

  • How procedural variation and supply utilization affect clinical margins
  • Where physician- and procedure-level data surfaces cost outliers and savings opportunities
  • The relationship between supply costs, reimbursement, quality and patient outcomes
  • How data informs robotics investments, vendor decisions and clinical supply chain strategy