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DoD and VA to Reduce Healthcare Supply Chain Costs
Date:10/22/2007

ine items to e-commerce. Newer to the effort, the VA has 20 hospitals participating with more pending over the next 90 days. The hospitals are using custom software to pull product, purchasing and contracting data from a robust, authoritative and synchronized data source known as the Product Data Bank. This allows users to quickly identify and research opportunities to reduce costs, particularly in areas where hospitals may be able to leverage existing supply contracts that offer better pricing than what they may have been paying previously.

"Accurate product information is key to improving efficiencies in the Medical Supply Chain, synchronizing critical medical data across the continuum of care, from medic to the medical center," says Colonel Marsha Langlois, director of the Medical Customer Operations Directorate at the Defense Supply Center Philadelphia. "Standardizing product data reduces healthcare costs, and most importantly, expedites delivery of the right items to our war fighters."

Improving healthcare supply chain data not only improves supply chain processes and transactions, it ensures that clinicians have the right supplies to provide quality patient care, according to Fred Downs, chief officer, Prosthetics and Clinical Logistics, Office for Veterans Health Administration. "It is more critical than ever that VA and DoD clinicians have the supplies they need when they need them, to ensure their patients' health and well-being." Downs adds that he hopes to have every VA hospital participating in the joint data synchronization program, for a minimum of $10 million in savings identified for VA hospitals in the next 18 months.

Hospitals participating in the program are researching savings opportunities that can range from a few hundred dollars to hundreds of thousands of dollars a year on a single item. Most opportunities are ones that hospitals can easily implement.

"Individual success stories can add up quickly to millions of do
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SOURCE Defense Logistics Agency
Copyright©2007 PR Newswire.
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