Febraury 15, 2024- Some advantages of a strong CSC strategy include the reduction of supply chain complexity and streamlining operations. Viewed as a strategic asset to health systems, it can leverage operational and logistical scale, minimize risk and help deliver effective patient care.
Henry Ford Health’s mission is to provide quality healthcare by placing “each patient first,” serving metropolitan Detroit and southeast Michigan. It opened its 45,000-square-foot CSC this past September with an aim toward high density items and physician preference items (PPIs).
“What we’ve done uniquely with physician preference items is driving additional value through reduced PAR levels within our hospitals, reduced prevalence of product expiry and greater resiliency by reducing supply disruption,” said Joe Pettinato, vice president, supply chain operations for Henry Ford Health.
From a resiliency perspective, Pettinato said Henry Ford Health is able to better prepare for known or expected supply disruptions at a much lower cost and more reliably than before, while also eliminating the prevalence of substitute product that is typically at higher cost than its contracted standards.
Henry Ford Health’s CSC has five full-time employees and will ramp up as business and volume grows. “Our business practices are established, and it’s gone exceptionally well since we started,” Pettinato said.
Read More in the latest issue of The Journal of Healthcare Contracting.