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Best Practices for the Healthcare Procurement Process

The healthcare industry is faced with challenges such as high inflation in healthcare costs as well as time and resources wasted when supplying the required items. These problems have placed great pressures on the healthcare providers who depend on the efficiency of procurement processes. The healthcare procurement management affects several aspects of organizational performance. With efficient decision making techniques, the healthcare system will be able to provide an efficient management of procurement affairs. This article discusses the best practices for procurement management in the healthcare industry, and dwells on the optimization approaches, which have been used to cope with the problems in healthcare procurement.

Procurement Unique to Healthcare

Healthcare procurement manages the buying of most of the services, equipment and supplies. The healthcare sector thrives to give emergency care for individuals in need, for unexpected medical care. Healthcare procurement management especially that in hospitals is crucial because it controls the purchase of the bulk of services, equipment and supplies, it manages supply cost as a percentage of spend, it oversees total lifecycle management, it brings tangible results and lastly its data analysis makes objective decisions. As a result, hospital procurement has been   given organizational hierarchy status. Data analytics provides real-time information that can help healthcare decision making and improve the effectiveness of the supply chain.

Well Defined Processes

In order to prevent overreliance on technological support, training practitioners is vital before investing heavily in technology. Reports are futile when no one knows the reason why they are done as too much time is wasted due to poor communication of stakeholders’ needs. An effective procurement process consists of detailed knowledge of the needs of all units in the healthcare sector, recognizing the correct supplier to achieve those needs, occasionally assessing supplier performance and arranging agreements that give greatest value at lowest costs. These processes ensure that the tasks are carried out smoothly and quickly. Predictive analytics give a forecast of future outcome based on past patterns instead of regurgitating information about past events to a user. More informed choices about how to proceed with a decision for better patient care can be made as clinicians, financial experts, and administrative staff in a hospital receive alerts about potential events before they happen.


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Muhammad Yaser, DPSM
Muhammad Yaser has substantive years of experience indiverse sectors that include banking, finance, training and development. He currently manages the procurement function of a nursing home and he holds a Master Degree in Marketing. He is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Muhammad Yaser completed the Diploma in Procurement and Supply Management (DPSM) on September 2021 at SIPMM Institute.
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