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Here's a big supply chain cost-savings opportunity: physician preference items

December 27, 2018 / Jeff Lagasse

It's a fair guess that many hospitals and health systems will be making cost savings a New Year's resolution in 2019, and by standardizing physician preference items, they could realize some of those savings in their supply chains. It's an approach that has certainly worked for Kentucky- and Indiana-based Baptist Health, which centralized its supply chain operations in 2013 and as since gone on to standardize PPIs in such a way as to save a little more than $12 million just on supply chain products in 2017. It can be challenging to find savings in the supply chain, which is why the standardization of PPIs was a top goal for Baptist. But that of course begs the question: What does standardizing PPIs even mean?