How Hospital Leaders are Driving Clinical-Supply Chain Integration: What Works and Why It Matters

Key Takeaways:

• A clinically integrated supply chain looks beyond expense reduction – prioritizing patient care and outcomes, disruption mitigation and operational efficiency.
• U.S. hospital leaders shared real-world strategies for clinical-supply chain integration during a recent Journal of Healthcare Contracting webinar. A recap of the discussion is below.
• Watch the full webinar to hear from these leaders and gain insights you can apply to your supply chain today.

For 2025 and beyond, the healthcare supply chain faces some pressing questions. How will the supply chain continue to demonstrate performance and value in an evolving reimbursement environment? How will we position and leverage innovations to build resilience, reduce spend and save lives? And how will we scale real-world results quickly throughout the nation?

Enter a clinically integrated supply chain, which is no longer an aspiration – but a necessity.

In this webinar hosted by the Journal of Healthcare Contracting, leaders from University Hospitals Health System, UVA Community Health, Kaleida Health and Premier share real-world strategies for building a clinically integrated supply chain that delivers optimal value. What follows below is a recap of the discussion.

Clinical-Supply Chain Integration for Patient Care and Efficiency

A clinically integrated supply chain doesn’t stop at reducing expenses – it prioritizes patient care and outcomes, minimizes delays and enhances operational efficiency. Travis Chaney, Senior Director of Perioperative Services at UVA Community Health, discussed the importance of ensuring essential supplies are readily available when clinicians need them.

Delays in acquiring necessary products can lead to patient care disruptions and inefficiencies in operating rooms (ORs), where every minute counts. With more consistent supply, UVA Community Health is optimizing OR block time and availability, which benefits both providers and patients and allows surgical teams to focus on care rather than logistics.

Chaney also highlighted organizational growth across the care continuum, which can make supply standardization increasingly complex. Many hospitals deal with redundant vendors and duplicate items in inventory across locations, leading to inefficiencies and excess costs. A clinically integrated supply chain fosters transparency; aligns supply decisions across the organization; and limits unnecessary duplication.

Best Practices for Successful Integration

Josh Davis, Director of Supply Chain at UVA Community Health, pointed to data-driven decision-making as one of the most critical factors to success.

When purchasing and utilization data are readily accessible and shared across teams, organizations can make more informed choices that tie directly to patient outcomes. Artificial intelligence (AI) and machine learning (ML) are emerging as valuable capabilities, supporting speed to value in streamlined inventory and procurement and surfacing predictive analytics for more proactive, efficient decision-making.

Davis and Chaney also spoke about Value Analysis Committees and active physician engagement. At UVA Community Health, structured value analysis touchpoints have led to the approval of numerous initiatives. This demonstrates the importance of clear pathways for evaluating and implementing changes. By involving physicians in the process alongside supply chain leaders, organizations can make cost-effective and clinically beneficial decisions that resonate with frontline providers.

Technology That Revolutionizes Clinical-Supply Chain Integration

From advanced analytics and AI to real-time cost transparency data, organizations are leveraging data-driven technology to enable greater efficiency, cost savings and improved patient care.

For example, Chad Fleischer, Vice President of Supply Chain at University Hospitals, noted the organization’s supply expense management system that monitors product utilization. The system helps University Hospitals identify conservation opportunities, including for IV fluids. The organization is analyzing service line data to pinpoint variations in usage and implement targeted strategies to minimize unnecessary expenses.

Fleisher also discussed the integration of real-time cost transparency capabilities within electronic health record (EHR) systems. Surgeons can now see a “surgical receipt” at the end of each procedure, displaying the total cost of the supplies used.

Ed Streeter, Vice President of Supply Chain Management at Kaleida Health, highlighted benchmarking data to optimize high-value implant (HVI) procurement. Premier’s data and technology provide insights into HVI pricing and contract performance, helping organizations maximize the value of purchasing agreements. Additionally, reimbursement modeling tools are enabling Kaleida Health physicians to assess financial implications before new product approvals, striking a balance between cost and quality.

Throughout the discussion, several leaders pointed to AI as a powerful tool for supply chain optimization and clinical alignment. AI applications in use range from simple automation – such as optimizing email responses – to complex supply chain management functions, including predictive stocking of surgical rooms and refining procurement processes. Real-time data insights, predictive analytics and advanced automation capabilities are enabling healthcare organizations to unlock savings, extend scarce labor resources and add efficiencies.

How Healthcare Organizations Can Scale for Innovation

As healthcare organizations strive to implement a clinically integrated supply chain, here are four keys to success for innovation at scale:

1. Establish a shared vision across stakeholders. A clinically integrated supply chain involves multiple departments, including clinicians, operations, supply chain management, IT and finance. Frontline staff often remain unaware of the organization’s investments in the supplies they use daily. Increasing transparency – whether by sharing cost insights or leveraging real-time tracking technology – empowers teams, enhances decision-making and helps drive commitment to the holistic vision.

2. Align skills and tasks for new demands. Innovation demands new ways of working. Healthcare teams must adapt to evolving roles, particularly in areas such as data analytics, change management and project execution. And as organizations implement new technologies and processes, they should invest in training and resources that empower employees to collaborate effectively across departments.

3. Focus on execution, not just strategy. While setting priorities is essential, execution drives transformation. Healthcare organizations must move beyond planning and ensure that teams have the necessary technology, support and cross-functional collaboration to make innovation a reality.

4. Get proactive on risk management. Tackling persistent supply chain disruptions and backorders remains a top priority. Leaders are actively seeking new technology and strategies to enhance operations and efficiency – and mitigate risk. Through innovations such as Premier’s Supply Disruption Manager, which leverages AI and predictive analytics, organizations can proactively manage shortages, evaluate alternative products and align procurement strategies with operational needs. Bridging technology with business processes, the solution aims to reduce daily operational pain points and drive smarter, more resilient supply chains.

The Power of Partnership with Premier

Premier has played a crucial role in supporting members like University Hospitals for nearly two decades – from a GPO conversion to delivering data-driven insights continuously reviewed with physician leaders.

For Kaleida Health, Premier’s data, technology and leadership in Value Analysis team processes has been transformational – successfully creating a clinically integrated approach that balances cost, quality and outcomes.

As healthcare organizations navigate the complexities of clinical-supply chain integration, partnerships such as those with Premier are proving essential. These leading healthcare organizations are shaping the future of clinical supply chain management – helping organizations enhance efficiency, reduce waste and improve patient care.

Learn More:

• Dig deeper – learn how Kaleida Health unlocked $75 million in savings and drove cost, quality and outcomes improvements with Premier.
• See how Premier can enhance your supply chain optimization and clinical integration efforts.