Acute Care Provider Survey | Hospitals Utilize Distribution For Physician Preference Item Cost Reduction

Hospital CFOs and supply chain executives report that investment, growth, and cost control are key strategic objectives for their organizations in HIDA’s 2017 Hospital and Health System Provider Survey. Nearly half of hospitals are exploring purchasing physician preference items (PPI) through distribution instead of directly from the manufacturer in order to reduce supply chain waste and control costs. Nearly all hospital executives who are purchasing PPI through distribution say they are satisfied with their organization’s decision to go this route.

Hospitals are planning on making significantly more investment in capital equipment, while also continuing to acquire physician practices. While cost control is a priority, supply budgets are projected to have moderate growth. Compared to results from last year’s survey, this year more hospitals are focusing on controlling costs and attracting talented personnel. (Published: 2017)



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