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SUPPLY
CHAIN
10 strategies to
streamline ASC
supply chain
management
By Rachel Popa
I
nventory Optimization Solutions shared
10 ways ASCs can improve supply chain
management.
Here are the key takeaways:
1. Order preparation. Barcode scanners
can capture information on products needing
to be ordered.
2. Order approval. Overspending can be
avoided by shiing the approval to the front
of the purchasing process by reducing orders
for products.
3. Order submission. Ordering can be
streamlined through technology such as au-
tofax or email. Automating order submission
also frees up time for supply chain personnel.
4. Vendor communication. Using data
interchange technology, supply chain staff
can communicate with suppliers to receive
confirmation that orders have been placed,
and when the supplies are on their way.
5. Mobile apps. Supply chain apps al-
low staff to place orders electronically, and
approvers can approve and submit them
seamlessly.
6. Tracking costs. Technology can help
ASC administrators keep track of business
plans, track inventory and manage costs.
7. Standardize products. Working with
group purchasing organizations to determine
which products can be standardized can help
ASCs save costs.
8. Take advantage of the cloud. Using
cloud technology will save staff time because
the soware can be adapted to fit an organi-
zation's structure, and soware doesn't need
to be installed.
9. Electronic three match invoice ap-
proval. Checking invoices to ensure they
match the confirmed price and quantity can
improve supply chain accuracy.
10. Automate orders. Automating orders
can free up time for ASC staff members who
have to wear multiple hats. n
5 major developments in the US medical
device industry
By Angie Stewart
T
he medical device industry's global annual sales are projected to
grow more than 5 percent annually and reach almost $800 billion by
2030, NASDAQ reported.
With more than $180 billion in revenues, the U.S. medical device market is
the largest in the world.
Here are five key developments in the U.S. medical device market:
1. Medtech tax is abolished. The 2.3 percent excise tax on medtech
manufacturers was suspended for two years. It will go back into effect
beginning Jan. 1, 2020. The repeal has spurred investments in the sector
and is expected to boost hiring and investment at 9,000 U.S. medical device
manufacturers.
2. Mergers and acquisitions surge. There has been ongoing merger and
acquisition activity in the industry. The MedTech arena saw a 50 percent spike
in M&A activity in 2017, putting the aggregate M&A value at more than $200
billion. Major recent acquisitions include BD's acquisition of C. R. Bard and
Johnson & Johnson's buyout of Actelion.
3. Pharmacy benefit managers and health insurers consolidate. Health
insurers have been collaborating with PBMs in the medtech space to stream-
line drug supply chain costs. Through strategic M&A policies, dominant
medical device players have expanded customer bases, gained leverage and
improved cash flow while alleviating pricing pressure and competition.
4. Medtech undergoes digital revolution. Robotic surgery, big-data analyt-
ics, bio printing, 3-D printing, EHRs, predictive analytics, real-time alerting and
revenue cycle management services are trending in the medtech industry.
According to some reports, AI adopters have reduced healthcare costs by 50
percent and improved patient outcomes by at least the same amount. Mean-
while, the industry has seen a rise in minimally invasive surgeries, increased
demand for liquid biopsy tests and IT leveraged to improve patient care.
5. Trade war fears take hold. President Donald Trump has targeted 10 sec-
tors for higher tariffs. The trade dispute will likely have a significant impact on
healthcare and medical equipment, as U.S. medtech firms currently export $4.7
billion to China each year and medical device imports from China amount to $5
billion. U.S. medical device exports totaled $52 billion last year. n
Drugs & medical supplies costs at ASCs
across the US — 7 statistics
By Angie Stewart
D
rugs and medical supplies
comprise almost 25 per-
cent of net revenue at ASCs
nationwide, according to VMG
Health's 2018 Multi-Specialty ASC
Benchmarking Study.
Here are seven statistics on the
median cost of drugs and medical
supplies per case:
1. All facilities: $140
2. Atlantic: $132
3. Midwest: $163
4. Mountain: $133
5. Northeast: $130
6. Pacific: $172
7. South: $141 n
