Dedicated to Excellence in Health Care Management

Supply Chain

The Applied Management Systems (AMS) Hospital Supply Chain Practice offers a comprehensive portfolio of services designed to reduce non-labor expenses (supplies, purchased services, and administrative costs) and improve your bottom line performance.  We have a team of hospital supply chain and clinical product specialists with extensive industry experience, a proven methodology and detailed hospital benchmarking databases to support hospital supply chain savings in all areas:

  • AMS has a supply chain Key Performance Indicator (KPI) Database that tracks non labor expenses in 28 categories of spend-many of our clients use the KPI assessment to determine where they still have opportunity to reduce supply chain costs.
  • AMS has a pricing database that tracks pricing for high cost implants and surgical supplies-since vendor pricing is not transparent, hospitals use the pricing assessment to determine if they are receiving industry best price.

Typical savings come from improved pricing through alternative sourcing strategies, vendor standardization and supply utilization, the hot topics in today’s supply chain industry.  For organizations that have achieved hospital supply chain savings from pricing and vendor standardization the new frontier for additional hospital cost containment is clinical utilization.  The savings are substantial but realization requires a change in how clinicians use supplies.

We also offer services designed to completely transform your hospital supply chain operations for improved service levels, productivity and sustainability of hospital cost containment.  We work with your department managers in all locations, not just Materials Management, on organizational structure and staffing, procurement and contracting practices, inventory management and distribution processes to transform operations.

Projects include:

  • The AMS Key Performance Indicator Review (KPI) can quickly reveal hidden opportunities in non-labor expense.  AMS summarizes your spend into 28 KPIs and compares them to like hospitals in our proprietary database.
  • The AMS pricing review will compare your cost for implants and surgical supplies against our pricing database and determine where you have opportunity to reduce cost.
  • Hospital Benchmarking/Operational Diagnostic assess staffing and hospital productivity, and designs the organizational structure, staffing models and processes to support more efficient performance levels. Develops a list of opportunities by department.
  • Implementation Assistance/Project Management and Facilitation for realization of long term financial and growth objectives.
  • Hospital Interim Management can also be include Outsourcing Assistance/Department review, RFP development, proposal and contract evaluation, Contract Pricing Audits (Comparison of invoice price to contract), rebate validation, GPO Review, Evaluation and Selection/Market Basket assessments and qualitative reviews.
  • Supply charge master file clean-up and pricing analyses.
  • Patient Equipment Systems Reviews equipment inventories, distribution processes, care/maintenance practices and tracking systems to insure sufficient equipment capacity to meet patient needs.