Facts and figures that highlight key supply chain trends.
February 2023 – The Journal of Healthcare Contracting
BY JOHN STRONG, CHIEF CONSULTING OFFICER & CO-FOUNDER, ACCESS STRATEGY PARTNERS INC
Supply, Purchased Services Costs Increase Dramatically
21.9% increase in supply expense (not including purchased services or pharmaceuticals) for hospitals from September 2021 to September 2022.1 During this same period, Kaufman Hall reports that purchased services expenses increased 16.2%.
Hospitals have faced a $11,950 supply cost increase per bed in 2022.2 This amounts to an average increase in supply expense of about $330 per admission, and a 6.2% increase per discharge.
- 19% The cost decrease for patients treated at home versus an inpatient hospital setting.3
- 24 hospitals and health systems launched innovation centers in 2021.4 How are suppliers and supply chain going to participate?
- By 2030, more than 50% of joint replacements will be performed in ambulatory Surgery Centers (ASCs)5. 21% of the typical ASC is presently for orthopedic procedures.6
- 0 The number of container ships waiting to dock at the Port of Los Angeles on December 2, 2022.
- The number of supply shortages are now roughly 5x the number in 2019, according to a recent Premier, Inc. study.
- 5.8% The decrease in quarterly active drug shortages between Q1 2019 and Q3 2022.7 (276 vs. 260).
- Hospitals and Health Systems joining the Health Sector Climate Pledge has reached 1,000. Meanwhile, 71% of healthcare environmental emissions come from supply chain related activities, according to Greenhealth Exchange.
Politically driven healthcare supply chain waste during COVID is monumental8
40,000 Initial estimate by the State of New York on the number of ventilators needed to fight COVID.
8,555 Actual number of ventilators purchased by NY state, for $166M along with 1,179 X-Ray machines for $86.4M. 2,141 ventilators had been deployed as of September 2022.
200,000 Ventilators ordered by the Trump administration in 2020 for $3B, but only 50% “had the capacity to support the most severely affected patients.”
$633M Cost of at-home COVID-19 tests from a political contributor to New York Governor Kathy Hochul.
1 Kaufman Hall “National Hospital Flash Report”, September, 2022
2 Computed from Kaufman Hall Op. Cit. and American Hospital Association Data.
3 American Journal of Managed Care, 2021
4 Gonzalex, Georgina, “24 hospitals, health systems that launched innovation centers in 2021”, © 2021 by Becker’s Healthcare
5 Cheney, Christopher, “No Plateau in Sight for Ambulatory Surgery Center Growth”, Healthleaders, May 11, 2022.
6 © 2022 Becker’s Healthcare.
7 University of Utah Drug Information Center, Downloaded November 21, 2022.
8 Spector, Joseph, “New York spent $250M on tech to fight COVID that no one uses”, Politico, September 20, 2022.