Could Amazon’s kryptonite be . . . medical supplies? (OrthoFeed)
Edward-Elmhurst Health spends on average $250 million a year on medical supplies sourced from more than 300 vendors. About 40 pallets arrive daily, filled with everything from exam gloves to sutures. “The goal for us is to have the lowest costs possible,” says Harold Richards, director of supply chain for the three-hospital system.
Richards works with Premier, a large group purchasing organization based in Charlotte, N.C., that negotiates the best price from vendors for about two-thirds of Edward-Elmhurst’s supply order. Among the system’s main distributors are Medline and Owens & Minor.
But health systems like Edward-Elmhurst should get ready to be wooed. Amazon is looking to use its mighty brand and distribution power to crack the medical supply business. After all, supplies are one of the biggest expenses for hospitals, which are facing a financial pinch for a host of reasons: Soaring drug costs. Patients with pricey deductibles who can’t afford them and then skip out on their medical bills. Medicaid and Medicare reimbursements that don’t cover the full cost of care.
The e-commerce behemoth already has reshaped...
