Multi-sourcing means getting medical supplies, equipment, and services from many suppliers instead of just one. Healthcare providers who use multi-sourcing have more flexibility because they can buy from different suppliers based on availability, quality, and price. Multi-sourcing also makes suppliers compete with each other, which can lower costs and improve quality. For example, a hospital may buy e-prescribing and telehealth components from different vendors instead of just one for electronic health record (EHR) systems. This method lets hospitals get better deals and choose vendors who are experts in certain services.
Also, multi-sourcing helps reduce risks when a supplier fails or is delayed. If one vendor has problems, others can fill in and keep patient care going. This is important in the U.S. healthcare system because patient safety depends on having supplies all the time.
However, managing many suppliers and contracts can be complicated. It needs good communication, coordination, and system integration. Cloud technology helps by offering flexible tools that make this easier and more efficient.
Cloud computing means using internet servers to store and manage data instead of local servers or personal computers. In healthcare procurement, cloud systems make it easier to connect and manage suppliers, contracts, and supply chain operations.
By 2026, about 70% of U.S. health systems are expected to use cloud-based supply chain management (SCM) tools. This change is because cloud systems improve efficiency, lower costs, and allow easy sharing of data. Cloud SCM replaces old ERP systems that needed costly maintenance. Cloud platforms update automatically and offer stronger security, which saves IT work for healthcare organizations.
Cloud systems link different healthcare software, like EHR, financial systems, and ERP platforms. This connection lets supply and contract data move automatically between departments and hospitals. Supply teams can track orders, check inventory, and adjust buying in real time. This helps avoid running out of stock or having too much.
For example, El Camino Health switched from an old ERP system to a cloud-based Workday system. In eight months, they trained staff, added Electronic Data Interchange (EDI) systems, and lowered errors to less than 1%. This change made operations more steady and saved time and effort.
Cloud systems also allow mobile and remote access, which helps healthcare managers and IT staff handle supplies from different places. Jack Koczela, Director of Supply Chain Services at Froedtert Health, said cloud solutions give more control, especially by letting users check purchase orders anytime and anywhere.
With cloud technology, hospitals and clinics can break contracts into smaller parts. This makes buying more flexible. For example, a hospital may get different parts of a technology system or supply categories from several suppliers. This approach encourages suppliers to compete, which often lowers costs and improves contract terms.
Cloud platforms support group purchasing organizations (GPOs) that negotiate contracts for many healthcare providers. These platforms offer one place to compare offers, manage contracts, and handle payments quickly. They reduce manual tasks like order entries, inventory checks, invoice matching, and status updates. These tasks often needed phone calls and emails before, so automation saves money on labor.
Prisma Health used a cloud-based data system connected with the Global Healthcare Exchange (GHX). This system cut costs related to manual item data work by about 80%. Likewise, the University of Kansas Health System formed a Clinical Supply Optimization team that saved over $8 million by linking clinical and financial supply chain data using digital tools.
Cloud systems let healthcare organizations watch product use with barcode or RFID scanning and real-time data sharing. This helps make buying decisions based on facts, avoiding shortages or too much supply, and matching patient care needs better.
A big challenge in multi-sourcing is keeping supply steady without breaks. Cloud SCM helps by showing real-time inventory across hospital networks. This lets staff move supplies between locations before shortages happen. This is very important for patient safety and care consistency, especially in large healthcare systems.
Cloud technology also helps healthcare follow rules by automating vendor checks, audit trails, and payment steps. Digital payments and fraud detection add security, which is key because healthcare data is very sensitive. Since 2023, ransomware attacks on healthcare have increased, so good cybersecurity with encryption and regular security checks is needed.
Healthcare leaders say data security improved after adopting cloud systems. For example, 73% of organizations using cloud SCM said their data privacy and protection got better. These advantages help providers keep trust and avoid fines.
Artificial intelligence (AI) and automation are becoming more important in healthcare procurement. AI can look at large amounts of data from many sources and turn it into useful information. This helps with decisions about sourcing, managing costs, and patient care value.
AI tools predict demand, help keep the right inventory levels, and find cost-effective suppliers that match patient needs. This forecasting reduces waste and supports care that focuses on value by having the right supplies when needed.
Automation lowers manual work by streamlining buying and payment tasks. Things like order entry, invoice checking, and inventory updates are done automatically. This reduces mistakes and saves labor. Staff can then spend more time on patient care instead of paperwork.
Premier, a healthcare technology company, uses AI to improve contracting and supply chain strength. Their Group Purchasing & Contract Management tool makes procure-to-pay workflows easier. It helps hospital leaders turn non-contracted spending into contracts and keep prices steady across care centers. Premier’s AI also links supply chain data with clinical results, helping providers and suppliers improve workflows together.
Places like Froedtert Health worked with GHX to update their cloud ERP systems and add automation for smoother supply chain work. Lurie Children’s Hospital improved supply chain strength by using cloud systems to protect data and start programs analyzing clinical value.
For medical practice leaders and IT managers in the U.S., using cloud-based multi-sourcing procurement has many benefits but needs careful planning. Important points include:
Following these steps can help healthcare providers improve buying efficiency, lower costs, and keep good patient care.
Cloud technology and multi-sourcing are changing healthcare procurement in the United States. Cloud-based supply chain management tools provide real-time data, automation, and more flexibility. AI and automation help make better decisions and reduce manual work, which lowers costs and makes operations stronger. These changes help healthcare groups meet patient needs better while staying safe and following rules. Medical practice leaders, owners, and IT managers who use these technologies and strategies can improve procurement and keep high-quality care going.
Multi-sourcing refers to a procurement strategy where hospitals source goods and services from multiple suppliers instead of relying on a single provider. This diversifies the supply chain, allowing for better value and improved quality.
Multi-sourcing offers several benefits, including cost savings through competitive pricing, improved quality by selecting specialized suppliers, and reduced risk by diversifying the supply base, thus mitigating dependency on a single vendor.
Hospitals should identify product categories suitable for multi-sourcing, research and evaluate potential suppliers, negotiate contracts often through group purchasing organizations, and manage supplier relationships for coordinated purchasing.
Multi-sourcing introduces increased complexity with the management of multiple suppliers and contracts, challenges in integrating different IT systems, and potential conflicts between suppliers that require clear communication.
Physician preferences are crucial as they influence the choice of medical supplies. Ignoring these preferences can lead to complications, reduced satisfaction, and compatibility issues during critical procedures.
To ensure dependable supply, hospitals should carefully select suppliers based on their reliability, build contingency plans for potential disruptions, and maintain small buffer stocks for critical supplies.
Cloud technology facilitates information sharing among different suppliers and systems, enhancing connectivity and efficiency, while also reducing the need for expensive on-site infrastructure and supporting real-time patient data movement.
Key considerations include achieving the best overall value, balancing cost savings with physician preferences and innovation, effectively managing logistics, and ensuring compliance with healthcare regulations.
Multi-sourcing exposes hospitals to a variety of suppliers, each bringing unique strengths and innovative solutions, therefore fostering an environment where hospitals can access new technologies and practices.
Hospitals can implement evidence-based strategies like optimizing staffing, modernizing infrastructure, and renegotiating vendor contracts, which can collectively lead to significant cost savings while maintaining high-quality patient care.
Simbo is using AI agents to automate all phone related workflows. Connect now to know more.
Schedule AI Agents Demo Now© Since 2019, Simbo AI.
