When costs rise and margins tighten, health system leaders often face a difficult challenge: cut spending without compromising patient care. By reimagining the health care supply chain as a strategic asset rather than a cost center, hospitals can realize significant, rapid health care cost savings without sacrificing clinical outcomes.
Make data-driven value analysis your first quick win
A sophisticated value analysis program is the quickest way to cut wasteful spending. Advantus’s Clinical Transformation team combines evidence‑based outcome data with clinician engagement to guide product selection and reduce unnecessary variation.
Our analytics platform monitors ordering compliance and flags high‑cost purchases, allowing leaders to address problems before costs balloon. This approach yields tangible savings while ensuring products deliver the outcomes clinicians expect.
Optimize purchased services and contract management
Non‑labor expenditures like purchased services — clinical engineering, information technology, food services, environmental services, patient transport — are a largely untapped source of savings. Centralizing these contracts, consolidating vendors and renegotiating terms can yield significant savings.
Advantus’s Purchased Services and Healthcare Technology Management programs bring discipline to this spend by standardizing procedures and leveraging technology. Our scalable pricing model and risk‑sharing agreements help hospitals manage maintenance costs, improve uptime and keep supply chain equipment safe and compliant.
Integrate logistics and distribution to reduce waste
Fragmented logistics generate hidden costs: multiple delivery fees, excess safety stock, and staff time spent chasing orders. Advantus’s integrated distribution services centralize warehousing, standardize point‑of‑use capture and provide real‑time visibility into inventory levels.
This approach reduces third‑party parcel deliveries, lowers freight costs and boosts supply‑chain resiliency during disruptions. With a single source of truth for inventory, hospitals can redeploy staff from reactive supply chasing to higher-value patient support.
Lean inventory and pharmacy management
An overstocked storeroom is cash sitting on a shelf. Lean inventory systems and robust analytics help hospitals forecast demand accurately, eliminate expired supplies and ensure optimal inventory turns.
In pharmacy supply chain, Advantus combines enterprise contracting, strong formulary structures and lean inventory practices to minimize drug spend while safeguarding access to critical medications. Predictive analytics flag potential shortages and guide buyers to on‑contract options, preventing expensive last-minute purchases.
Drive efficiencies in environmental and hospitality services
Patient-facing services like environmental cleaning, food and linen offer surprising savings opportunities. Smart cleaning equipment and chef-led menus improve both efficiency and patient satisfaction, proving that high-quality experiences can coexist with cost containment.
Through its partnership with HHS, Advantus delivers integrated hospitality services covering environmental services (EVS), food & nutrition, linen management and transport, yielding immediate cost savings while elevating the patient experience. One health system cut bed turnover time by 23%.
Invest in sustainability and energy efficiency
Sustainability initiatives often deliver immediate financial returns. One health system saved $4.9 million by implementing a reprocessing program with Advantus, diverting over 19,000 pounds of medical waste from landfills. Advantus solutions, combined with value‑analysis programs and sustainable purchasing practices, help institutions implement green initiatives that lower operating costs and enhance community reputation.
Engage leadership and cross-functional teams
Sustainable savings require committed leadership and broad collaboration. The team at Advantus has a background as health care operators. We’ve been in your shoes, and know how the success of any initiative depends on the people and teams involved.
Advantus consulting services provide the expertise and analytics necessary to align people, processes and technology. With executive involvement and data-driven governance, quick wins become the foundation for long-term transformation.
Invest in efficiency, preserve quality
Immediate cost reduction without compromising quality isn’t an unattainable myth. It requires a shift from reactive cuts to strategic improvements across the health care supply chain. By starting with the right mindset, data, and support, health systems can unlock rapid savings that support high-quality care.
Advantus Health Partners offers modular solutions encompassing these domains, helping supply chain leaders implement hospital cost reduction strategies aligned with clinical excellence. The result is a resilient, efficient supply chain that keeps patients at the center of every decision. Contact us to get started today.
