Last year U.S. healthcare spending reached $3.8 trillion and of that one third alone was from hospital expenditures. In the next seven years, a projected 5.7% increase in hospital sending will occur and yet one in five hospitals are expected to close for financial reasons. There are multiple causes to why hospitals are struggling so much. One reason is that hospitals are seeing a higher use due to Medicaid expansion.
In addition to this more people are aging into Medicare which will affect hospitals as reimbursement rates are just 41% as compared to 241% in private insurances. Another issue is that implementing new emerging technologies and specialty drugs is costly but necessary. One solution to these problems is to implement better supply chain management.
More than half of hospital executives believe that better supply chain management could grow profit margins by up to 3%. Find out how hospitals can save their money, time and selves by using supply chain management in the following infographic.
infographic by: viehealthcare.com