The healthcare landscape is in a constant state of flux, and with it, the pressures on the hospital supply chain have never been greater. For today's healthcare leaders, disruptions are no longer a rare occurrence but a daily operational reality. The central question has shifted from if they should invest in building supply chain resilience to how they can do it effectively.
In a recent Becker's Healthcare Podcast episode, we brought together leaders from the front lines of this transformation: Régine Villain, Chief Supply Chain and Support Services Officer at Ochsner Health; Tom Lubotsky, Vice President and Chief Supply Chain Officer at Allina Health; and our own Founder and CEO, Steve Liou, to discuss the real-world strategies they are using to build a more proactive and resilient supply chain ecosystem.
Here's a look at some of the key takeaways from our conversation.
During the early days of the COVID-19 pandemic, healthcare organizations faced unprecedented challenges in securing essential supplies. Régine Villain shared how the constant uncertainty and shifting timelines for critical PPE deliveries prompted a revolutionary idea at Ochsner Health: "Wouldn't it be nice if we were able to just make our own?"
This question, born from a moment of frustration, sparked a transformative initiative. Ochsner, a system known for its innovation, embarked on a journey of true vertical integration, partnering to build a domestic, state-of-the-art PPE manufacturing facility. This bold move shifted Ochsner from a passive purchaser to an active participant in its own supply chain.
The benefits of this forward-thinking strategy were multi-faceted:
Speed and Agility: It allowed Ochsner to respond quickly to surges in demand, avoiding the painful weeks- or months-long waits for overseas shipments.
Economic Impact: The project created jobs and strengthened the local Louisiana economy.
Quality Control: It ensured access to high-quality, reliable products, a significant concern amid the influx of substandard goods during the pandemic.
This initiative demonstrates a powerful shift in mindset, viewing the supply chain not as a cost center, but as a strategic asset essential for protecting patients and the community.
While the need for a robust healthcare supply chain strategy is clear, securing executive buy-in for new investments can be a hurdle. Tom Lubotsky of Allina Health, whose system jumped 12 spots in Gartner's supply chain ranking, offered a compelling framework for how he approached this challenge. He framed the investment in their supply chain resiliency program as an insurance policy that they can't afford to pass up.
"I am here to tell you that there are choices we have to make about how to run a clinical enterprise. And this is one that I feel strongly about that we should not be taking a risk on."
This approach reframes the conversation around risk mitigation and continuity of care—essential functions of a health system. For Allina, the required investments for building supply chain resilience included:
By positioning the program as a non-negotiable for safe and effective operations, leaders can more effectively advocate for the resources needed to achieve supply chain resilience.
While individual health systems are making incredible strides, the strategies of both Régine and Tom point to a foundational challenge in healthcare: critical decisions are often made with incomplete data. Steve Liou, Clarium’s CEO, addressed this industry-wide issue, noting that unlike other sectors, healthcare has historically lacked significant, real-time data sharing between providers and their suppliers.
"Historically, in other industries, there's been significant data sharing between companies and their suppliers. And that just hasn't existed in healthcare."
The solution lies in creating a unified data ecosystem. This involves integrating the disparate systems health systems rely on daily—ERPs, EHRs, and warehouse management systems—and connecting that information with data feeds from suppliers, distributors, GPOs, the FDA, and real-time events that could impact supply chain (e.g., weather-related events).
This connected network creates a powerful multiplier effect. Steve offered two practical examples of how this collaborative model plays out in the real world:
Ultimately, this "give-to-get" model fosters a community-driven approach to healthcare supply chain resilience, moving the entire industry toward a more predictive and collaborative state.
To hear more from these industry-leading experts on how they are navigating the complexities of the modern healthcare supply chain, listen to the full podcast episode, "From Reactive to Resilient: Transforming the Health System Supply Chain."