Across the country health systems are dealing with financial strains caused by issues such as rising labor costs, decreasing Medicare and Medicaid reimbursements, and operational challenges. The numbers are sobering hospitals absorbed $130 billion in underpayments from Medicare and Medicaid in 2023 alone1 and in 2024 total hospital expenses grew 5.1%, significantly outpacing the overall inflation rate of 2.9%2.
Among operational challenges, hidden supply chain inefficiencies are a hidden danger to health system budgets. They often go undetected due to fragmented processes and lack of real-time inventory delivery and tracking visibility, proof of delivery, and integrated logistics solutions across the healthcare supply chain, creating cascading effects like emergency purchases at premium prices, over- and under-stocking, expired inventory, and missed savings. This includes challenges like overstocking surgical kits, misallocated durable medical equipment, and emergency procurement of critical medical supplies. Read More >
