The myth of group buying leverage.
To deal with current cost pressures, most hospitals have focused on reducing costs by negotiating lower prices for supply items. But such strategies are not as successful as hospitals believe, say an analyst at Booz, Allen & Hamilton. In fact, manufacturer pricing to hospitals is more market-driven than volume-driven, he argues, and group buying leverage is largely illusory. To truly reduce costs, hospitals need to find more effective ways of managing their supply costs.
D003132:Commerce; D003363:Cost Control; D005069:Evaluation Studies as Topic; D006755:Hospital Shared Services / Q000191:economics*; D008962:Models, Theoretical; D010934:Planning Techniques; D011682:Purchasing, Hospital / Q000458:organization & administration*; D013223:Statistics as Topic; D014481:United States