Healthcare Quarterly

Healthcare Quarterly 21(3) October 2018 : 28-33.doi:10.12927/hcq.2018.25704
Rethinking Supply Chain Management

Case Study: Supply Chain Transformation in the Mercy Health System

Anne W. Snowdon and Betty Jo Rocchio

Abstract

The Mercy case study documents evidence of a clinically integrated supply chain strategy implemented in the peri-operative programs in three of the 46 hospitals in the Mercy system. Mercy became the first US health system to achieve "the perfect order," a supply chain industry standard with end-to-end integration of supply chain best practice in the Mercy system. To date, the Mercy strategy has demonstrated revenue growth of $8 billion, a 70% reduction in Never Events, a 33.3% reduction in supplies cost/case and a 29.5% reduction in labour costs/case in the perioperative programs in three hospitals.

 

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