Sustainability as a supply chain business strategy: What leaders should know
The perceptions of sustainability strategies among health care leaders are inaccurate. In today’s changing environmental landscape, many supply chain leaders may ask if they still need to pay attention to it. The answer is yes, it should be an achievable and measurable strategic business priority that can bring savings and long-term value to hospitals and health systems when approached through this lens.
For example, clinicians usually equate reprocessing tools with lower quality reprocessing tools, when in reality, the situation is usually correct. Furthermore, many executives view sustainability as another expensive budget order project when it can actually be achieved as a bottom-line efficiency as a long-term change rather than a one-time unchanged one-time process or program transfer.
It’s time to uncover the myth of sustainability of healthcare and be the reason why sustainable supply chain practices are not only the right step, but also provide inherent advantages for financial savings and patient satisfaction.
Misunderstanding 1: Post-processing leads to insufficient clinical choice
According to the U.S. Food and Drug Administration standards, the process of reusing single-use medical devices after reusing single-use medical devices. This may include cleaning, disinfecting and sanitizing these devices and scrutinizing them carefully. Despite the huge opportunity to reduce emissions and waste through post-treatment, many clinicians mistakenly believe that the quality of these products is different from that of brand new products.
True story: There is a strong argument to say that reprocessed goods are actually of higher quality. At least, they are of the same quality as brand new products. Moreover, transferring to reusable products will extend the lifespan of each purchase.
For example, consider a pulse oximeter. Quality inspection of a brand new device only requires careful inspection of the sample batch – perhaps two or three of the 1,000 made. The standard for reprocessing options is much higher: bars are a 1:1 ratio.
There is a lot of waste in today's operating rooms. This is a fact. Given that guarantees for high-quality products actually increase with post-processing, healthcare organizations should strive to mitigate environmental impacts by reusing medical equipment. Not only is this an important step towards greater sustainability, but health systems can achieve substantial cost savings and increase the resilience of their supply chains.
Health systems can significantly reduce medical waste and balance environmental sustainability, financial innovation and quality of care by implementing strategic electrophysiological equipment post-processing programs.
Misunderstanding 2: Sustainability Practice Creates a New Budget Order Project
Today’s health systems operate in the financial margins of razor thin. Often, the concept of creating high-function strategies for sustainability seems daunting and expensive.
True story: Although sustainability plans do require upfront and ongoing investment, the achievable ROI makes it an easy-to-develop business case to bring resources. The goal is to take only the first step and transition to more sustainable products and solutions in the long run.
Effective inventory management is an important step ahead of financial and physical waste. Health systems distributed in facilities and geography must go beyond the isolated supply chain strategies that traditionally characterize operations. Greater transparency within the supply chain is key to improving product redistribution, which ensures common cost efficiency and sustained resilience.
Technology is the key driver of transparency. Supply leaders should seek solutions that allow individual facilities to release expired items or items that are no longer needed. Items can then be reassigned in the health system network to avoid waste. The internal courier network helps redistribute products prove their value in many systems, thus having a significant bottom line impact.
Continuous assessment of the environmental impact of a variety of products can help health systems make better choices to support more sustainable practices. For example, the anesthetic gas defluorane has a greater impact on the environment than other anesthetic gases. This simple move can help the health system reduce its emissions in a big way. Removing the Desflurane evaporator reduces CO2 emissions, just like reducing passenger cars on the road, is a step in the right direction.
Call for action
The reality is that when C-Suite prioritizes reducing the carbon footprint of healthcare organizations, including financial health, patient care outcomes, and patient experience, there are many benefits. Physician buying, education and supplier alignment lay the right foundation for the first step.
Photo: Chrisgorgio, Getty Images
John Wright is the COO of Advantus Health Partners, a healthcare solutions company that makes supply chain easier for its customers through simplified supply chain management, organizational purchases, operations and cost-saving efficiency. John has over 25 years of experience as a health care operator, and is recognized for his strong track record of maximizing efficiency and reducing costs. At Advantus Health Partners, John is responsible for the overall success of the supply chain, including production planning, inventory management, integrated logistics and consulting services that provide customized solutions to the complex challenges facing healthcare. Previously, John was Vice President of Supply Chain and Support Services Operations at Intermountain Healthcare. John holds a bachelor’s degree in biology and an MBA from Virginia Tech, and has served as a sergeant in the Virginia Army National Guard.
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