Welcome to this week’s edition of SpendVu’s Healthcare IT and Supply Chain News Weekly Digest. Join us each Friday for a new post featuring select industry related articles that we at SpendVu find interesting, controversial, and/or enlightening.

Catch up on this week’s industry news including news reports on what type of savings can be achieved by streamlining supply chain operations, we once again look at security vulnerabilities and what conversations are taking place around securing healthcare information, and finally we finish with a focus piece on the role GPOs are currently playing in healthcare procurement.

  1. Hospitals Could Save $23 Billion Annually by Streamlining Supply Chain Operations
  2. Old Legacy Devices Pose Greatest Security Risk Experts Say
  3. Five Things to Know about the Role of GPOs in the Healthcare Supply Chain

#1: “Hospitals Could Save $23 Billion Annually by Streamlining Supply Chain Operations, Product Use”

By Navigant Consulting, Inc

SpendVu’s thoughts: We love this September 2017 report by Navigant Consulting as it delivers some hard hitting facts about how streamlining operations really does result in bottom line savings. Additionally, they did a nice job of calling out the top 4 areas to improve on and bridge the operational gaps between in order to really become more efficient. I highly suggest reading the full report!

Article SynopsisHospitals nationwide could reduce annual supply expenses by approximately $23 billion.  Top performers consistently leverage evidence-based protocols and data analytics to reduce variation in pricing, product use, and clinical outcomes. This information better equips supply departments to amongst other things automate requisitions, purchase orders, invoices, and other manual supply chain processes that can lead to documentation errors.

Read more at: https://www.navigant.com/-/media/www/site/insights/healthcare/2017/supply-chain-analysis-infographic.pdf?la=en 


#2: “Old Legacy Devices Pose Greatest Security Risk Experts Say”

By Jonah Comstock

SpendVu’s thoughts: As a software solution provider, we know all too well how rigid healthcare security is. One of the advantages of developing software is how flexible and quick we can be to accommodate tighter security regulations; generally it’s a small code update that gets released after hours and no end users notice a difference. However, reading this article and seeing the timeline for class 1 and class 2 products to go from R&D to available in the market underscores why we need to be thinking of tomorrow today in terms of regulations. Anything being developed now will be in the market in approximately 5-7 years, which means all security and risk prevention going in today need to be able to handle the future. 

Article SynopsisIn Boston, at the HIMSS Media Healthcare Security Forum, speakers described the many problems inherent in defending older legacy medical devices against new security threats.  Older devices are often most at-risk because some were not originally designed to be connected devices.
Read more at: http://www.healthcareitnews.com/news/old-legacy-devices-pose-greatest-security-risk-experts-say


#3: “Five Things to Know about the Role of GPOs in the Healthcare Supply Chain”

By Jon Leibowitz, Dan O’Brien, Russell Anello

SpendVu’s thoughts: It seems like everyone is talking about GPOs and the role they play in healthcare costs lately. This article is a very practical approach to analyzing the GPO role, but leaves without offering any suggestions for changes or improvements. What we can say for sure is that this is only the beginning of this conversation, and we’ll be keeping a pulse on any additional information. What are your thoughts on the current, accepted model?

Article SynopsisGPO’s are on the hot seat of debate as things have shifted from when they were endorsed by congress in the 80’s.  This article shares 5 things to know about GPOs, their business model and role in the supply chain, and their impact on healthcare costs and competition.
Read more at: http://managedhealthcareexecutive.modernmedicine.com/managed-healthcare-executive/news/five-things-know-about-role-gpos-healthcare-supply-chain