Healthcare Supply Chain Management Market to Jump in 2018
The Latest in the Healthcare Supply Chain News
Growth is on the horizon for the healthcare supply chain management market. According to recent projections, the industry is set for 8% year-over-year growth, reaching an estimated $2.31 billion in revenue by the year 2022. This is good news for both healthcare providers and suppliers, as this growth is a by-product of advancements like cloud-based healthcare supply chain management solutions, which make it easier to track and handle supplies. The rise of value-based reimbursement models, which link payment to quality, are also driving the demand for better supply chain management.
The improvements that may accompany this growth would be welcomed. Two-thirds of healthcare providers surveyed say that improving healthcare supply chain management would boost their revenue, lower costs, and improve the quality of care. As it stands right now, healthcare supply chain management is the second largest expense for healthcare providers.
An uptick in hospital mergers and acquisitions will also drive this supply chain growth over the next five years, as providers look for comprehensive systems that can help consolidate operations across their facilities.
In addition to growth, the healthcare supply chain management market will be influenced by its share of disruptors and challenges in the coming years, including:
Supply Chain Cybersecurity Risks
As supply chain management becomes an even more integral part of provider networks, so too will anticipating the cybersecurity risks that come with it. A new report from Micro Trend highlights the cybersecurity vulnerabilities healthcare providers face. Specifically, healthcare supply chain third-parties can create opportunities for data breaches or ineffective products. Areas healthcare providers should pay attention to include distribution center access, mobile app developers (ask about how the apps are designed to be secure), and outdated medical device firmware (there are some that can’t be updated or have stock login credentials that are easy to hack). Follow up on each of these areas on a regular basis, as you don’t want to have threatened elements that go unnoticed for months or even years.
Amazon Announces Prime Membership for Medicare Recipients
It looks as though Amazon will also have its disruptive hat in the healthcare supply chain ring. The ecommerce and distribution giant recently announced that it will offer Medicaid recipients Amazon Prime membership for just $5.99 a month (more than 50% cheaper than a regular membership). This is largely in an attempt to break into the healthcare industry and compete with Wal-Mart. This may just be the first step in a longer plan to disrupt the healthcare supply chain, with services that could include offering the ability to directly talk to a physician and order prescriptions as an all-in-one offer.
Ultimately, in the coming years healthcare providers will want to ensure all parts of their supply chain are optimized, including transportation. For your healthcare supply chain transportation needs, reach out to Econo-Courier, where we specialize in transporting healthcare supplies and records in a timely, compliant fashion – every time.
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