The purchasing dollar of multi-hospital & clinic systems called “IDNs” (Integrated Healthcare Delivery Networks) drives the healthcare supply chain and service industry. There is, however, a critical lack of control over the IDN’s own supply chain by the IDNs, and a critical lack of transparency. A recent study concluded that as much as 38% of the cost for medical products and supplies is due to logistics cost associated with moving the products or supplies from the producer to the clinician treating the patient. The chart below is an illustration from this study. Compared to other industries, the logistics cost in the healthcare supply chain are from 4 to 8 times greater.

Multi-hospital & clinic systems (IDNs) have a very inefficient logistics model due to unfortunate circumstances. NHCL’s new logistics model takes millions of dollars of cost out of the business cost of the typical IDN.