Strategies to help cut costs in your Long-Term Care (LTC) facility

As healthcare costs continue to rise, more and more long-term care communities struggle to cut costs and remain competitive. Healthcare supplies purchasing is one area that is always under the microscope during the budgeting process. Long term care facilities are faced with complex patient needs and the need to have the right mix of healthcare related products and supplies. By streamlining the healthcare supply chain process within the organization, one becomes better equipped to combat costs. Below are a few best-practices learned over the 70 years we’ve been in business.

Standardization of Healthcare Supplies

A crucial element to saving money is by standardizing the array of healthcare related products and services that you’re using. Ensure all your long term care facility units are purchasing the same supplies and services. By reducing the number of different brands and products you use on a daily basis, you can better leverage your purchasing power and reduce costs.

Centralize all Healthcare Supply Purchasing

Whether purchasing for a small or large long term care facility, people tend to order healthcare and related supplies depending on their preference. Unfortunately, this ends up adding to your bottom line because you’re not working together to get the best bang for your buck. Eliminate silos and by working together in your healthcare supply and ancillary services purchasing you can help get better pricing and tighter control over inventory management.

Benchmark Supply Expenses

Benchmarking expenses can help improve your bottom line. There are many tools that can be used for free. For example, Premier’s Baseline tools help gain actionable information to manage your supply costs more effectively, understand operational opportunities, and implement supply chain strategies for cost savings, and revenue growth.

Use Your Purchasing Data

Be sure to use existing purchasing data to set standards for operation. Also continue to gather and analyze purchasing data effectively, making sure to note any reoccurring trends, gaps or patterns. If this is something that’s a struggle or there are questions, contact your Group Purchasing Organization (GPO) and they can help walk you through the process.

Leverage Your Purchasing Power and Save Money on Healthcare Supplies with a GPO

GPOs like Pandion can provide lower prices on product and services in exchange for purchasing volume through cooperative buying. By joining a GPO, one has access to purchasing quantity that could not be realized on your own. If you’re on the fence about joining a purchasing group, it is a good way to save additional money on the same products and services you’re already purchasing, have more power in areas of customer service and benchmarked quality.