This is a not a “the sky is falling” communication but we all know not a day goes by without more bad financial news not only in the U.S. but globally.  Just when we think what else could happen then something does happen economically! As it has been said many times over the years, “healthcare is recession proof”. In the past this statement has been fairly accurate, however, I believe that this time the current economic crisis will put this notion to a true test. The current economic crisis is too deep and widespread not to have significant negative impact on all stakeholders within the healthcare supply chain. In the October 22, 2008 New York Times there was an article on the slowing down of patients filling their prescriptions due to tough economic times, IDN’s around the country are showing downward trending in their census’ and IDN’s are also where possible are re-evaluating their capital purchase budgets. They are doing this to potentially delay purchases where and when possible in preparation for further slowing down of the economy or minimally just to hold onto their money until some light appears at the end of the this financial crisis tunnel.  

There are so many unknowns impacting IDN’s and the healthcare supply chain right now that the majority of IDN’s are taking a “wait and see” approach on major financial spending plans to see what moves they will have to make to stay ahead financially. Whether there will be further labor reductions, a need for deep supply cost reductions, or other drastic measures no one really knows but then again it is no longer business as usual. The election is upon us and many are hoping that once this never – ending presidential campaign officially ends that it will add some certainty to the future but again what is being promised by both candidates is going to cost a lot of money and where will that come from?

 I believe that the smart aggressive IDN’s will take advantage of these tough times to improve their supply chain – what better time then to improve physician relationships which could lead to better partnerships when it comes to a collaborative approach of improved standardization and utilization on the high-cost physician preference products! What better time to implement the industry-wide standards we all have been talking about since the great “Dot.Com” years. Which can finally get all stakeholders maximum value (that we all know is there for the taking) if we could get all stakeholders to collaborate for the good of the healthcare system versus each stakeholder looking out only for their own best interests. Only time will tell, but one thing is for sure it is going to be a wild ride and the IDN’s that have their supply chain act together will be in a far better place to ride out this economic storm!!! 

Larry Dooley VP, Group Purchasing 

ROi – Resource Optimization and Innovation