Navigation Links
Hospitals Gain Time and Money Maximizing Distributor Value
Date:5/29/2012

ALEXANDRIA, Va., May 29, 2012 /PRNewswire-USNewswire/ -- Hospitals realize substantial cost and time efficiencies by maximizing their spend through a distributor, according to a study released today by the Health Industry Distributors Association (HIDA). The PricewaterhouseCoopers-conducted study looked at hospital purchasing practices for distributor and manufacturer-direct orders.

"This study quantifies the efficiencies associated with the distribution channel," said Matt Rowan, HIDA president and CEO. "It's a good business decision; time and money are saved by having one single vendor handle as much as possible."

The Hospital Procurement Study, "Quantifying Supply Chain Costs for Distributor and Direct Orders," focused on hospitals that used a prime vendor distributor, and compared the time and related costs associated with distributor orders to those for manufacturer-direct orders.

Major findings include:

  • Distributor orders are three times as likely to be electronic and average less than 30 seconds per purchase line order. Manufacturer-based orders average more than three minutes per line due to manual ordering and sign-off.
  • Distributor-dominant practices such as advance ship notice reduce staff time spent reconciling receiving invoices and orders.
  • Hospitals spent an estimated $67 per day receiving distributor orders versus $131 on manufacturer-direct orders.

The study notes that while some high-dollar products do not fit within common "cost-plus" distribution models, hospitals benefited from increasing the share of commodity products purchased through a single distributor, and from examining new models that can move expensive preference items through distribution as well.

PwC conducted in-depth analysis of procurement practices in 32 hospitals that varied in size and location. For the full study and a list of recommendations hospitals can take to operate more efficiently, visit the HIDA website.

About HIDA
The Health Industry Distributors Association (HIDA) is the premier trade association representing medical products distribution. HIDA members primarily serve the nation's hospital, long term care, and physician/alternate care markets. For more information, visit www.streamlininghealthcare.org or www.HIDA.org.


'/>"/>
SOURCE Health Industry Distributors Association (HIDA)
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Physician-Patient Alliance for Health & Safety: Monitoring Technology for PCA Pumps Can Prevent Adverse Events: So Why Are Hospitals Not Using It?
2. University Hospitals Case Medical Centers Harrington Discovery Institute Launches Grant Program to Accelerate Drug Discovery and Development
3. QIAGEN and Cardinal Health Collaborate to Offer Molecular Diagnostic Products to Smaller and Mid-sized U.S. Hospitals
4. Physician-Patient Alliance for Health & Safety: Hospitals Need to Address PCA Pump Patient Safety
5. New Data Suggest Minimally Invasive, Video-Assisted Thorascopic Wedge Resections for Lung Cancer Provide Clinical and Economic Advantages to Patients, Hospitals and Payors
6. Quest Diagnostics Offers Industry-First 30-Day Ambulatory EHR Implementation Guarantee for Hospitals and IDNs
7. Outreach Services Merger With Cardon Healthcare Creates Largest Provider of Eligibility Services to Hospitals
8. PAREXEL Expands Alliance Network to Support Early Phase Patient Studies, Establishes Collaboration With University Hospitals Bristol NHS Foundation Trust
9. Criticare Secures Contract to Supply nGenuity Vital Signs Monitors to Russian Hospitals
10. MX.com Launches Pelvic Health Program Model to Help Hospitals Rapidly Expand Key Services
11. UHC Launches RxLINK™, Gives Hospitals Unprecedented Insight Into Pharmaceutical Pricing
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:1/20/2017)... Research and Markets has announced the addition of the ... Amplifiers, Diagnostic Instruments), Sales Volume, Company Analysis and Forecast to ... ... Volume, Company Analysis and Forecast to 2022 provides a comprehensive ... The growing prevalence of hearing impairment coupled with an expanding ...
(Date:1/20/2017)... -- Wells Specialty Pharmacy announces the acquisitions and merger of ... Winter Park, Florida and Pharm-EZ Medical, LLC, ... been consolidated into the 3796 Howell Branch Road Facility. ... Chad Tomlinson , former Vice President of Operations, has ... Tomlinson is a Graduate of Florida State University and has ...
(Date:1/19/2017)... -- Report Details What can be expected ... to grow at the fastest rates? This visiongain report ... opportunities and prospects. Our 190-page report provides 124 ... in the industry and the future market prospects. Our ... all the major categories of the ophthalmic devices market. ...
Breaking Medicine Technology:
(Date:1/20/2017)... ... 2017 , ... Doctor C LLC, a company based out of Arizona that ... continue the marketing and distribution of its product, The Right C. , The Right ... absorption than traditional vitamin C supplements. At the trade show, Doctor C had the ...
(Date:1/20/2017)... ... January 20, 2017 , ... Michael and Betsy Brauser celebrated ... Institute. For Betsy, the clinical trial has been life-saving as she has been ... , Betsy Brauser was diagnosed with ovarian cancer in 2009. She underwent standard ...
(Date:1/20/2017)... ... ... account following a man who went on to support his country and serve the Lord. ... Haven, Florida and at the age of 5, his family moved to Pensacola Florida. In ... and got married right out of boot camp. , He and his wife raised ...
(Date:1/20/2017)... ... January 20, 2017 , ... “Knowledge is God’s Lighthouse”: a moving ... is God’s Lighthouse” is the creation of published author, Gene Gaapf, a retired truck ... , “I have been writing since high school and have many different titles,” ...
(Date:1/19/2017)... , ... January 19, 2017 , ... Next week after ... be repealed by Congressional political games that circumvent health needs of over 30 million. ... capture the human anxieties and needs government public servants were suppose to prioritize. Interviews ...
Breaking Medicine News(10 mins):