H-Source Blog


Supply chain…a revenue center?

by H-Source on 12/10/2018

As margins continue to trend down for hospitals across the country, supply chain costs are predicted to exceed labor costs by 2020. Dan Pak, Assistant Vice President at Nexera, said, “Given the changes in the market, the role of supply chain must shift from a transactional model to a strategic model…”

John Kupice, CEO of H-Source, says supply chain can have a significant positive impact on the financial success of hospitals when positioned as a competitive advantage. Kupice predicts more hospitals will implement single warehouse or self-distribution solutions, purchase more items directly from manufacturers, and transform the traditional supply chain cost center into a revenue center.

Read more predictions, as well as enablers and barriers to these changes, from John Kupice in the Healthcare Purchasing News article, “GPOs transforming cost center to revenue center.”