Seven Ways University Hospitals Is Building a Stronger Supply Chain

Key takeaways:

• Rising costs, frequent disruptions and clinical variation make it harder for health systems to sustain supply chain improvements and demonstrate savings over time.
• Working with Premier, University Hospitals (UH) built an enterprise approach that combines executive governance, transparent analytics and close clinician collaboration.
• UH is reducing unnecessary variation, strengthening supply chain and pharmacy resiliency and driving measurable impact.

Healthcare is operating in a new reality. Costs are rising. Disruptions are more frequent. And “good enough” supply chain strategies do not suffice when every decision has enterprise-wide ripple effects.

At University Hospitals (UH), supply chain has evolved far beyond purchasing and logistics. In the face of historic industry headwinds, UH is pairing governance, analytics and clinical collaboration to reduce variation, eliminate waste and sustain performance improvements over time.

The system’s partnership with Premier transcends simple contracting and sourcing support, building the structure and insight needed to make difficult decisions, sustain change and keep performance moving forward.

Below are seven ways UH is putting that strategy into action across the enterprise.

Make review and accountability a continuous practice.

In today’s environment, supply chain improvement cannot be occasional. It has to be continuous, especially as new products enter the market and supplier costs continue to shift.

UH’s approach starts with a disciplined evaluation of what comes into the organization including new products and devices, services and supplier charges. This means asking tough questions upfront, pressure-testing value and keeping a close eye on the cost drivers that can quietly accumulate over time.

“We must continually review all the products, equipment and services that we are bringing into our organization,” said Chad Fleischer, UH’s Vice President of Supply Chain. “There are a lot of questions around new devices, and we have ongoing conversations with suppliers about tariff-related fees and other miscellaneous charges.”

This work also requires transparency on both sides. Fleischer noted that UH’s teams are direct with suppliers about expectations and consistently look for ways to improve care while lowering costs.

Why it matters: This level of discipline keeps cost and utilization decisions proactive instead of reactive, helping the organization stay ahead of market volatility instead of chasing it.

Use governance to keep momentum high.

Identifying savings opportunities is not the hardest part. Taking advantage of them consistently across a complex health system is the true challenge, especially when initiatives touch multiple sites, service lines and clinical stakeholders.

UH elevated its supply chain operations through executive-level governance via the organization’s Expense Cabinet, where supply chain progress is reviewed alongside other major expense priorities. This structure creates a consistent cadence for bi-weekly updates, executive visibility and cross-functional alignment across the system.

“Sitting on the Expense Cabinet has allowed our executive leadership to see opportunities across the system,” said Fleischer.

This governance model also helps reinforce collaboration between supply chain and clinical leaders. Fleischer noted that physician leaders participate to help address clinical barriers that may arise, and that data transparency across team members is critical to making successful transitions.

Why it matters: When leadership has visibility into progress and barriers, initiatives are less likely to stall when change becomes difficult. It also ensures supply chain decisions stay connected to broader enterprise priorities rather than isolated within one department.

Use analytics to validate savings and reduce variation.

Health systems often struggle with the gap between “savings identified” and “savings realized.” UH focuses on closing that gap by validating progress over time while also using objective data to reduce unnecessary variation.

The organization uses a combination of internal reporting and Premier tools, including Premier’s Spend Dashboard and Premier’s Service Line Analytics, alongside financial reports and supplier transparency.

Analytics also support clinician conversations around utilization and appropriateness. Much of this work runs through UH’s Operating Room (OR) Value Analysis Committee (VAC), where clinical and supply chain stakeholders can gain alignment on best practices and evaluate opportunities together.

Why it matters: Sustained tracking protects gains over time, while variation insights support smarter decisions that balance consistency, cost and care quality.

Build trust before asking for change.

Physician preference categories account for one of the most complex variables in supply chain, and progress depends on trust.

UH brings transparency into clinical decision-making through OR-VAC discussions, opportunity reports and shared review of service line data. The intent is to create alignment before implementing changes, supported by trials and clinician feedback.

“We are very transparent with our data,” said Fleischer. “We want it to be a group decision before any decisions are made.”

It is also important to use data in a way that strengthens relationships rather than creates tension.

“UH’s supply chain team does a great job of using the relationship and that data as a value lever,” said Bruce Radcliff, President of Supply Chain Services at Premier. “Rather than some people using the data as punitive, the UH team does a tremendous job of actually using the data to build a relationship and not let data erode a relationship.”

Why it matters: Decisions are more likely to hold when clinicians are part of the process rather than informed of changes after the fact.

Make waste reduction part of the workflow.

Supply disruptions have forced many organizations to rethink routine practice. UH has taken that learning and turned it into a broader mindset shift toward “zero waste.”

“We’ve adapted to so many supply disruptions that we’ve actually learned how we can eliminate waste in certain scenarios,” said Fleischer.

A change to preference card protocols is one of the most impactful examples at UH. Items costing more than $100 are flagged and are not opened unless clinically necessary. That change delivered significant savings throughout UH.

Why it matters: Operational habits drive long-term performance, and small workflow changes can deliver enterprise-level impact.

Strengthen pharmacy resiliency through consistent shortage management.

Supply chain transformation is not limited to medical-surgical products. Pharmacy is also a critical part of total cost management and resiliency, especially as shortages and pricing pressures persist.

UH addresses this challenge through a weekly pharmacy shortage call that includes representation from each pharmacy, including leadership and buyers. Stakeholders review new market shortage announcements from vendors as well as internal shortages of concern. The group works with Premier and UH’s wholesaler to identify alternative products and share them during meetings.

For prolonged or global shortages, the group prepares clinical practice changes as well as alternative medications and dosing regimens for leadership review and approval. These changes are executed across all pharmacies simultaneously to ensure consistent messaging, information technology (IT) builds and care delivery.

Why it matters: A disciplined, system-wide approach helps protect patient access, reduce variation in practice and maintain consistency during disruption.

Choose partners who support transformation, not transactions.

As supply chain becomes more strategic, the definition of “partner” evolves. Lasting change requires transparency, shared problem-solving and support that extends beyond the contract.

“A transformational partner understands the needs of the organization and partners in resolving complex problems,” said Fleischer. “It’s not just a transaction but a relationship.”

For UH, partnership is not just about support at the point of contract. It is about having the insight and collaboration needed to carry initiatives from evaluation through adoption and sustained performance.

“Premier helps bridge the gap between a transformational partner and a traditional supplier,” said Fleischer. “They excel at recognizing the perspectives of both hospitals and suppliers, effectively connecting the two sides.”

Why it matters: When change gets hard, the right partner helps maintain momentum and supports decisions that are built to last.

What’s Next

Together, these seven strategies reflect a broader shift in how UH approaches supply chain performance. Executive governance keeps priorities aligned. Analytics support decisions that can be validated over time. Clinician partnership makes change more durable. And a zero-waste mindset ensures improvements show up in daily practice, not just on paper.

Looking ahead, UH is also exploring how artificial intelligence (AI) can help further accelerate routine work and speed up decision-making. “We’re hoping that AI will bring some new efficiencies into our world that will help speed up some of our routine activities,” said Fleischer. “Now we’re focused on learning how to use it most effectively, and we’re excited to explore what’s possible with Premier’s support.”

For more:

• Learn more about how Premier can help your healthcare organization strengthen supply chain performance, explore our solutions and connect with our team.