Articles, PSQH July 8, 2013

The Health Supply Chain

by Barry P Chaiken, MD

The shift to value-based reimbursement from volume-based reimbursement puts great pressure on organizations to obtain a detailed understanding of how and what resources they utilize to deliver care. Without a deep understanding of this issue, providers are unable to effectively manage care delivery and survive an environment of declining reimbursement.

Other industries focus on the supply chain to efficiently manage production and the delivery of products to customers. Although healthcare organizations similarly focus on the supply chain, they focus solely on tangible products utilized to deliver care to patients.

The Health Supply Chain model provides a broad, all-encompassing view of care delivery that links both administrative and clinical processes and workflows in the “manufacture” of patient care. This analytical approach assigns responsibility for the clinical and financial outcomes of patient care to all members of a provider organization, rather than dividing responsibility between administrative and clinical functional units.

The Health Supply Chain model affords a valuable framework for organizations to begin to understand their care delivery process and the costs of care.

Excerpts from: The Health Supply Chain. PSQH, July/August 2013


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