How Mercy Health Consolidated Its Supply Chain

How Mercy Health Consolidated Its Supply Chain

Posted Oct 13, 2021 from

Facing rising costs and inconsistencies, health systems are strengthening efficiency by vertically integrating their supply chains. When Mercy Health began partnering with Medline, a medical supply manufacturer and distributor, in April 2017, products flowing through its medical-surgical distribution channel were 2% standardized. Now, they're more than 50% standardized. Mercy has also slashed its distribution centers from 14 to two and reduced its manufacturers by 50%, according to a Medline case study provided to Supply Chain Dive.

Mercy Health's integrated delivery network which has about 500 health care facilities serving Ohio and Kentucky is at the cutting edge of a growing trend among health systems. Battling rising costs and seeking greater patient satisfaction, health systems are forming partnerships to standardize a long-outdated and clunky part of their systems: supply chains. Faced with lower reimbursements and inpatient volumes, most health systems have already implemented standard cost-cutting measures, and now need new places to trim. 

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