In healthcare, innovation is about creating access, better meeting patients’ or consumers’ needs, and eliminating waste. By addressing about 75-80% of the income statement tied to workforce, supplies, and occupancy, we create a foundation for real change.
Innovation begins with understanding supply and demand, making the complex understandable and actionable. Here’s how we approach the supply side:
1. Workforce: The Lifeblood of Healthcare
#Workforce costs are the largest expense, but inefficiencies persist:
Hurry-and-wait dynamics leave staff overworked.
Administrative burdens steal time from patient care.
Friction and lack of control lead to frustrations #AI offers promise, but only if applied thoughtfully.
We must focus on reducing burnout, streamlining scheduling, and cutting redundant paperwork. AI should support caregivers, not be one more thing to deal with.
2. Supply Chain: An Opportunity to Innovate
Brian DeBusk of Deroyal Industries once told me, “We’re just trying to get hospital supply chains to function at least as well as a 1976 grocery store.”
Inefficiencies create waste and delays that drive up costs. By leveraging predictive analytics and digital tools, we can align #supply with demand, reducing waste and ensuring access to essential resources when they’re needed most.
3. Occupancy: A Cost and Strategic Asset #Occupancy goes beyond logistics. It’s about using real estate as a dynamic asset to expand access.
Are spaces optimized and owned smartly for patient care and operational efficiency?
Could underutilized facilities become hubs for innovation and #CommunityBenefit?
Do we understand the complexity and hidden costs associated with occupancy, especially non-essential and #ambulatory locations?
Managing real estate strategically creates opportunities for care delivery, improves flow, and turns an expense to revenue.
The Path Forward
Innovation focused on workforce, supply chain, and occupancy supports both dealing with challenges and leveraging opportunities. Tackling these areas reduces waste, increases patient access, improves experience (both for staff and patients), and sets a stage for productive growth.
Three Initial Steps to Boost Innovation:
1. Audit the Foundation: Identify inefficiencies in workforce, supply chain, and occupancy.
2. Reframe Real Estate: Think of occupancy as a strategic asset, not just a static cost.
3. Link Innovation to Access: Ensure every solution eliminates waste and expands care delivery.
Innovation starts with the essentials. By redefining supply as the backbone of access, we can make healthcare more sustainable, efficient, and equitable.
Ready to rethink your supply side?
