The State of Hospital Purchasing Report reveals the priorities of hospital purchasing leaders during our current period of historic industry challenges.

It’s no surprise supply chain challenges caused by a global pandemic have impacted global logistics, fueling price spikes for the world economy in general and hospitals in particular. This strain on raw materials, manufacturing, and transportation has only added to the pressure already squeezing healthcare providers struggling with burnt-out employees, staff shortages, logistics backlogs, increasing costs, and managing the ebb and flow of COVID patients along with meeting the demand for the other reasons that patients come to the hospital. As staffing turnovers and unfilled job positions force healthcare providers to accomplish more with smaller teams it’s more important than ever for healthcare professionals to have the tools, supplies, and materials needed to streamline their work.

Owens & Minor, a leader in healthcare distribution and logistics, in partnership with AHRMM (the Association for Health Care Resource & Materials Management), the leading association in the field, surveyed hospital purchasing leaders across the U.S. to reveal what will drive hospital purchasing decisions in 2022 and beyond.

The survey covered topics such as planned investments, strategic priorities, new trends, and engagement with clinicians and physicians.

Hospitals and health systems are working closer with distributors and suppliers to address supply challenges and stay ahead of any product needs. “Owens & Minor works collaboratively with suppliers to improve visibility into where products are made and how long it takes them to arrive in the U.S.,” said Jeff Jochims, Executive Vice President, COO & President of Products & Healthcare Services at Owens & Minor. “This work enables hospitals and health systems to plan for the future and ensure appropriate products or alternatives are available to provide care.”

One example of how Owens & Minor brings transparency is its Supplier Metrics and Accountability Report Tracker (SMART Card) publication. According to Jochims, “the SMART Card is sent to O&M strategic customers bi-weekly to provide transparent visibility into global supply situations and backorder risks. The goal is to help customers plan for product availability or for the need to find substitute products.”

Hospital supply chain leaders continue to be challenged procuring certain medical supplies, as global supply constraints persist. It’s vital for hospitals and health systems to be prepared for what’s ahead, and they don’t have to go it alone. Healthcare logistics companies like Owens & Minor have long demonstrated the operational excellence required to help hospitals and health systems prepare for the unexpected and overcome even the most complex supply chain challenges.

“Owens & Minor has invested in technology that enhances our ability to be flexible and scalable to best serve customers,” said John Connor, Vice President Operations, Owens & Minor. “Investments in real-time control towers that provide end-to-end supply chain visibility, artificial intelligence that can transform data and deliver actionable insights, and automated inline technologies have enabled Owens & Minor to provide industry-leading service levels, on-time delivery, and shipping accuracy for customers.”

Another area Owens & Minor continues to invest in is its Americas-based manufacturing, ensuring supply continuity and reliability, while also enabling product to get to the customer very quickly. In addition to having partnerships with over 1,200 branded and qualified diversity suppliers, Owens & Minor is diversifying and mitigating risk by finding alternative sources for products in both local and non-Asian markets.

Labor shortages continue to be among the biggest challenges facing hospital and health system leaders. Some supply chain leaders have combated shortages by bringing in traveling nurses, increasing incentives for staff, building an internal supply of temporary workers, and pooling resources across the hospital and health system. Partnering with a distribution and logistics company like Owens & Minor can expand the options available to hospitals with creative, tailored solutions to optimize the talent that’s already available. One example of this is Owens & Minor Logical Unit of Measure (LUM) program. Owens & Minor works with supply chain leaders to rightsize onhand inventory to improve service levels and ensure you have the supplies you need when you need them to support patient care. Labor resources are maximized so you spend more time on higher-value activities across more departments. Fewer orders will flow through bulk storage locations, requiring less labor, supported by Owens & Minor’s technology. Staff will minimize the amount of time spent on ordering products, putting away and chasing down supplies in the case of stockouts, while minimizing product expiration and obsolescence.

Owens & Minor Expanded Access program is another example of how they can help address staff shortages. Purchasing directly from multiple suppliers can add cost and complexity, including fragmented purchasing and additional freight and procurement expenses to your supply chain. When you partner with Owens & Minor, they identify opportunities to consolidate purchases placed directly with the supplier through their extensive distribution network as part of your distribution services. You’ll place more orders through EDI, saving time and money on procurement processes, allowing you to focus more time on supporting patient care. It can cost up to 50% more and can take longer to place and receive direct-buy orders versus ordering from a distributor. (HIDA Hospital Procurement Study — 2012)

Today, hospital purchasing leaders must do more with less. Staff shortages, cost increases, change in patient behavior and preferences, continued ramp-up in elective surgeries and increasing performance expectations mean efficiency and smart decision-making are more important than ever.

According to the research, this means hospital purchasing leaders are focusing their investments on capital improvements, equipment upgrades and scaling up their inventory even as the majority say their team is under-resourced.

As hospitals and health systems invest in scaling up inventory, having a reliable distribution and logistics partner can make all the difference in building a responsive and resilient supply chain. Distribution and logistics companies like Owens & Minor provide innovative, customizable solutions to strategically procure and manage inventory, giving supply chain leaders confidence that they will have the supplies they need to provide uninterrupted care for patients. An example of this is Owens & Minor’s strategic stockpile solutions. Owens & Minor works with supply chain leaders to build a reserve of their inventory within its distribution network. Supply chain leaders have convenient access to their supplies without having to store them within the hospital, reducing on-site inventory and creating space that can be allocated for revenue generation.

During times of uncertainty, or during the normal course of business, strong partnerships are critical to achieving goals, driving efficiency and reducing risk. Procurement teams that maintain productive relationships with clinicians and physicians have better visibility into their needs and the experience they hope to deliver to patients.

Unprecedented times create unprecedented opportunities. The hospital purchasing leaders who are able to adapt, expand efficiency and predict what’s next are the ones who will win the next cycle of efficient hospital operations, creating better experiences for patients, physicians, shareholders and their coworkers.