When Every Penny Counts
I reviewed a list of savings opportunities with a small rural hospital client’s CFO recently and I told him I was disappointed that we only found $226,926 (3% Annual Supply & Purchased Services) in new savings for him. He told me that he wasn’t let down by the results for the reason that “every penny counts” at his healthcare organization. In most years, this figure would equal his bottom line.
This CFO’s response shocked me, since I didn’t realize how thin most hospitals’ bottom lines were each and every year. However, it reinforced my philosophy of how important it is for supply chain professionals to save each and every penny that they can to improve their hospital’s bottom line.
Remember: It requires about $33 dollars in new revenue to produce just one dollar in new profits for your hospital. It only takes one dollar in supply chain savings to have the same bottom line effect. That’s why this CFO was pleased about the savings opportunities we uncovered for him, since it is nearly impossible for him to generate new revenues in our current economy.
Now that you know that “every penny counts” at your healthcare organization, supply chain professionals can become heroes by squeezing the towel dry in supply chain savings one penny at a time.
Filed Under: savingsblog • Supply Chain Savings
