With over 20 years of experience in hospital supply chain management, and having conducted 50+ biologic- specific RFPs, I have found the following steps incredibly helpful in reducing biologics costs while maintaining positive clinical outcomes:
Biologics have varying technologies and indications for use, as well as a wide range of available clinical evidence. For example, bone grafts represent a subcategory of biologics that are widely used in spinal fusion surgeries, which is typically a high-cost procedure.
This step involves aligning with your clinical teams on the value of available technologies to price. For example, I have seen multiple hospitals and IDNs lower costs and maintain or improve physician satisfaction for lumbar fusion procedures by switching to more cost-effective technologies with similar or greater clinical evidence.
Many companies in the biologics space have very limited portfolios, and often offer just one product in the biologics category. By choosing biologics vendors that offer a broad portfolio of products, your surgeons will have access to a wide range of technologies to match the needs of the patient, while the supply chain department can more effectively control costs. Following these three steps will help you on the journey to making sense of your biologics use and spend.
John Gallagher, MHA, CMRP is Manager of Customer Response and Contracting at Bioventus LLC. John is a certified health- care supply chain professional with 20+ years of experience and is adept at value analysis processes, contracting and category management.
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