Understanding Purchasing Decisions to Reduce Supply Chain Costs

By Doug GolwasYour Bottom LineLeave a Comment


Studies have shown that supply chain represents 40 to 50 percent of a hospital’s operating expensive. Proper management and control of purchasing can often help healthcare organizations reduce supply chain costs. To help enhance operational efficiencies at its facility, SBH Health System recently awarded Medline a three-year, $40 million prime vendor agreement.

SBH is home to St. Barnabas Hospital, a 437 licensed-bed, not-for-profit community hospital and Level 1 Trauma Center that is accredited through The Joint Commission. Through the partnership, Medline will provide the New York-based health network with an extensive portfolio of essential medical supplies and solutions to help enhance patient outcomes and streamline supply chain operations. To give the health system a better understanding of its purchasing decisions, Medline’s online tool, INSIGHT, will offer SBH interactive dashboards to gain general and specific information about purchases, including total spend per month, usage, pricing, orders and shipment status.

“It is critical that any vendor partnership is aligned with the hospital’s mission of providing high quality and safe health care services to the Bronx community. Medline’s recent investments in products and attention to clinical delivery speaks to our combined goal of improving patient care through more efficient medical supply order and distribution processes,” says Todd Gorlewski, chief financial officer, SBH Health System.

The contract is effective through May 31, 2019.

About the Author
Doug Golwas

Doug Golwas

Doug Golwas has over 20 years’ experience in sales, marketing and business development leadership. His experience has been focused on medical product development, sales and supply chain. In his current role, Golwas is responsible for overall leadership of corporate sales at Medline. These responsibilities include Medline’s programs and services including financial offering and contracting, logistics solutions, and technology in support of med/surg distribution and supply chain to hospitals and IHNs. His experience with Medline includes work with GPOs, aggregation groups and major IHNs. He most recently led the company’s ambulatory surgery center division. He received his Bachelor of Science from Texas Tech University and holds an MBA from the University of Dallas.

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