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Thomas Jefferson University Hospital's ongoing initiative to reduce non-labour expenses

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For health systems to survive or hoping to grow in the new healthcare era, a centralised strategic sourcing function is essential to maintaining and enhancing margin and ensuring the right new technologies are in the hands of clinicians. Sourcing cannot just be about price containment and contracting, it must focus on helping health systems grow through margin enhancement, pioneering the use of new technology and championing the advancement of care. Sourcing departments must become trusted partners of administrators and clinicians, and shed the reputation of being the department engaged only when a purchase order is needed or contract requires signature. Strategic sourcing begins with engagement of main departments and decision-makers within the institution, seeking to understand their needs and objectives and their associated dependencies on suppliers and third parties, and aligning the resource and activity of the sourcing team to support those needs. Success is based on the ability to implement a strong core of sourcing professionals who are empowered to identify, explore and lead product review and selection opportunities, and who follow a rigorous, comprehensive sourcing process that is focused on strategic business alignment, sourcing strategy development and execution and objective decision-making, all of which this paper will explore.
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Keywords: change management; healthcare strategic sourcing; procurement; programme management

Document Type: Research Article

Publication date: March 1, 2016

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  • Management in Healthcare is the major new professional journal publishing in-depth, peer-reviewed articles and case studies on leadership, administration and management in healthcare. Content will be written by and for healthcare management professionals and researchers with no advertising or sales pitches.

    Each quarterly 100-page issue – published in print and online – will feature detailed, practical articles on key business issues which cut through the deluge of information facing healthcare management professionals to showcase the latest thought leadership in how to deliver more with less resources while at the same time improving healthcare quality, along with actionable advice and ‘lessons learned’ from fellow healthcare managers to put that strategy into practice. It will not publish advertising but rather detailed analysis of new thinking and practice at a wide range of healthcare providers worldwide for readers to benchmark their organization against, with every article being peer-reviewed by an expert Editorial Board to ensure that it focuses on the healthcare manager’s perspective, the challenges they face and how they can tackle them.

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