The Impact of Supply Chain Transformation in Global Health Systems

For immediate release

The Impact of Supply Chain Transformation in Global Health Systems

Medical error is the third leading cause of death in Canada, the U.K. and the U.S.

February 15, 2018 – Three ground-breaking case studies released today by the World Health Innovation Network (WIN) find that supply chain processes, based on global standards, improve safety, quality and performance in three global health systems. These case studies provide the first empirical evidence of the impact of implementing supply chain transformation in Canada, the U.K. and the U.S. Medical error is the third leading cause of death in Canada, the U.K. and the U.S.

“These case studies provide emerging evidence of the system level impact and return on investment
of implementing supply chain traceability, based on Global Standards, in Canadian, U.K. and U.S. health systems,” explains Dr. Anne Snowdon, Academic Chair, WIN, and Scientific Director & CEO, Supply Chain Advancement Network in Health (SCAN Health).

The research examined the leadership strategy, return on investment and impact achieved by transforming health system supply chain infrastructure in each health system. Data was derived from observations, public reports, financial data, online publications and key informant interviews.

Results reveal that substantial savings ranging from 4:1 to 8:1 return on investment are achieved through inventory optimization and waste reduction, and that significant clinician time savings achieved through supply chain automation can be redirected to patient care. Savings in labour costs and patient safety are not yet accounted for in these outcomes but are anticipated to further increase the return on investment.

Alberta Health Services is taking a leadership role to transform our supply chain to improve safety, quality and sustainability of our health system. These case studies demonstrate real world evidence of the value and impact of adopting traceability to improve health system quality and performance for the citizens of Alberta, and globally,” says Verna Yiu, President and CEO of Alberta Health Services.

Findings reveal that strong leadership is crucial to the successful transformation of supply chain infrastructure in health systems to advance safety and financial sustainability. The integration of supply chain and clinical teams drives implementation success. “At Mercy, by engaging clinicians in product procurement decisions based on real world evidence of value for our patients, we ensure the best practice and care,” explains Dr. Joe Drozda, Director of Outcomes Research at Mercy Health, Missouri, U.S.

The World Health Innovation Network (WIN) brokers partnerships between key stakeholders to source, embed and scale innovations in health systems. WIN develops the evidence of impact and scalability across health systems and disseminates this information to accelerate health system transformation, drive economic growth and improve patient outcomes. WIN is based at the Odette Business School at the University of Windsor.

Click the links below to read the case studies:

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