Hospitals can improve their collaboration with key vendors through having an effective pricing system and strategy in place. Vendors and healthcare providers need to comprehend costs by using systems for cost-accounting to run detailed information concerning actual and increased costs of each service. For instance, hospitals can use the accounting method or ratio of cost to charges and Medicare cost allocation to assist their pricing systems from vendors to run smoothly. It also a good practice for vendors to compare pricing from their systems with those from other competitors. The other strategy hospitals can use to enhance collaboration with key vendors is to improve order precision and cycle times in orders to lower costs. Vendors, at times, struggle with complex error rate linked with processing orders. Ordering wrong products cause losses in revenue, and sometimes hospitals do not have the products they require to deliver proper services. Error in order can also result in a medication error and poor health outcomes (Samuel et al., 2010). Therefore, it is significant for hospitals to improve their ordering accuracy to enhance collaboration with key vendors.
Further, the type of data that could be shared to improve overall supply chain is the Group Purchasing Organizations data. This type of data generates cost savings for healthcare supply chains by giving the organization more purchasing power. Hospitals can negotiate lower costs much in a similar way that companies apply discounts to bulk products that consumers order. The data also provides facilities with various options for buying supplies and create healthy competition in the market that also assists in maintaining low costs. According to Rahimnia & Moghadasian (2010), effective supply chain management can be cost-effective when hospitals analyze, plan, and control the purchase and correct use of supplies in the facility.
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References
Rahimnia, F., & Moghadasian, M. (2010). Supply chain leagility in professional services: how to apply decoupling point concept in healthcare delivery system. Supply Chain Management: An International Journal , 15 (1), 80-91.
Samuel, C., Gonapa, K., Chaudhary, P. K., & Mishra, A. (2010). Supply chain dynamics in healthcare services. International journal of health care quality assurance , 23 (7), 631- 642.
