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Healthcare supply chain management; strategic areas for quality and financial improvement

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  • Kwon, Ik-Whan G.
  • Kim, Sung-Ho
  • Martin, David G.

Abstract

Healthcare supply chain has recently attracted attention by scholars, researchers, government officials and providers as one of the main tools in their effort to manage healthcare cost and improve quality at the same time (Elmuti, et al., 2013). It is reported that healthcare costs in the United States represent a sizeable portion of the gross domestic product and it is expected to increase at a much higher rate than other sectors in the economy. Nevertheless maturity of healthcare supply chain is said behind the commercial supply chain leaving room for improvement (de Vries and Huijsman, 2011). This paper explores strategic areas where healthcare supply chain may enhance efficiency in terms of cost per patient discharge of healthcare operations while improving the quality of care in terms of reducing re-admission rate. This paper argues that fundamentals of supply chain principles should be deployed to create “supply chain community surplus” where resources can be tapped to improve quality of care. Three strategic areas were explored to maximize the provider's revenue; understanding of supply chain principles (perception change), process improvement and deployment of logistics tools.

Suggested Citation

  • Kwon, Ik-Whan G. & Kim, Sung-Ho & Martin, David G., 2016. "Healthcare supply chain management; strategic areas for quality and financial improvement," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 422-428.
    • Handle: RePEc:eee:tefoso:v:113:y:2016:i:pb:p:422-428
    DOI: 10.1016/j.techfore.2016.07.014
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    Cited by:

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    7. Tiwari, Manisha & Bryde, David J. & Stavropoulou, Foteini & Dubey, Rameshwar & Kumari, Sushma & Foropon, Cyril, 2024. "Modelling supply chain Visibility, digital Technologies, environmental dynamism and healthcare supply chain Resilience: An organisation information processing theory perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    8. Verónica Duque-Uribe & William Sarache & Elena Valentina Gutiérrez, 2019. "Sustainable Supply Chain Management Practices and Sustainable Performance in Hospitals: A Systematic Review and Integrative Framework," Sustainability, MDPI, vol. 11(21), pages 1-30, October.
    9. Daher YOUSEF & Bibu NICOLAE & Marinica DANIELA, 2023. "Improving the Management Performance of the Military Medical Supply Chain for Mission Readiness," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(1), pages 57-68, March.
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    11. Videsh Desingh & Baskaran R, 2022. "Internet of Things adoption barriers in the Indian healthcare supply chain: An ISM‐fuzzy MICMAC approach," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(1), pages 318-351, January.
    12. Lusiantoro, Luluk & Mara, Setyo Tri Windras & Rifai, Achmad Pratama, 2024. "Towards net zero healthcare transport operations in Indonesia: A total cost of ownership approach," Socio-Economic Planning Sciences, Elsevier, vol. 95(C).
    13. Tortorella, Guilherme Luz & Saurin, Tarcísio Abreu & Fogliatto, Flavio S. & Rosa, Valentina M. & Tonetto, Leandro M & Magrabi, Farah, 2021. "Impacts of Healthcare 4.0 digital technologies on the resilience of hospitals," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    14. Kim, Rachel H. & Gaukler, Gary M. & Lee, Chang Won, 2016. "Improving healthcare quality: A technological and managerial innovation perspective," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 373-378.
    15. Fabián Silva-Aravena & Irlanda Ceballos-Fuentealba & Eduardo Álvarez-Miranda, 2020. "Inventory Management at a Chilean Hospital Pharmacy: Case Study of a Dynamic Decision-Aid Tool," Mathematics, MDPI, vol. 8(11), pages 1-20, November.
    16. Joon-Seok Kim & Nina Shin, 2019. "The Impact of Blockchain Technology Application on Supply Chain Partnership and Performance," Sustainability, MDPI, vol. 11(21), pages 1-17, November.
    17. Javad Gerami & Reza Kiani Mavi & Reza Farzipoor Saen & Neda Kiani Mavi, 2023. "A novel network DEA-R model for evaluating hospital services supply chain performance," Annals of Operations Research, Springer, vol. 324(1), pages 1041-1066, May.
    18. Furstenau, Leonardo Bertolin & Zani, Carolina & Terra, Stela Xavier & Sott, Michele Kremer & Choo, Kim-Kwang Raymond & Saurin, Tarcisio Abreu, 2022. "Resilience capabilities of healthcare supply chain and supportive digital technologies," Technology in Society, Elsevier, vol. 71(C).
    19. Riccardo Aldrighetti & Ilenia Zennaro & Serena Finco & Daria Battini, 2019. "Healthcare Supply Chain Simulation with Disruption Considerations: A Case Study from Northern Italy," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 81-102, December.
    20. Changhee Kim & Hyun Jung Kim, 2019. "A study on healthcare supply chain management efficiency: using bootstrap data envelopment analysis," Health Care Management Science, Springer, vol. 22(3), pages 534-548, September.
    21. Carlos Franco & Edgar Alfonso-Lizarazo, 2017. "A Structured Review of Quantitative Models of the Pharmaceutical Supply Chain," Complexity, Hindawi, vol. 2017, pages 1-13, December.

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