It’s time for provide chain leaders to rethink distribution past the hospital
Healthcare prices and labor pressures proceed to climb, provide chain disruptions and shortages persist, and well being system executives are demanding financial savings from operational leaders.
For healthcare provide chain leaders, the mandate is evident: Cut back prices and waste, strengthen resiliency, and enhance clinician engagement—all whereas navigating unpredictable demand and ongoing labor shortages.
On the similar time, care supply is shifting past hospitals into non-acute settings resembling outpatient clinics and ambulatory surgical procedure facilities (ASC). Primarily based on a claims evaluation, Advisory Board estimates that as much as $50B in hospital volumes may depart the hospital to the freestanding setting.[i]
Whereas these websites supply alternatives to decrease prices, in addition they expose the constraints of a hospital-centric provide chain mannequin.
This raises a essential query: Can acute care distributors successfully serve non-acute websites?
On the floor it might appear logical, however in actuality, stark operational variations exist.
This text debunks seven widespread misconceptions about non-acute distribution and gives a roadmap for provide chain leaders increasing their attain past hospital partitions.
False impression 1. “One distributor can cowl each acute and non-acute wants simply effective.”
Acute and non-acute websites function in basically totally different environments. Acute distribution is constructed for centralized amenities, bulk shipments and devoted provide chain groups. Non-acute websites are decentralized, various and sometimes lack house to retailer stock—requiring smaller, extra frequent deliveries. Forcing an acute mannequin onto these websites presents the danger for provide shortages, greater prices (e.g., expedited shipments), and disruptions to care continuity.
Non-acute distribution additionally requires specialised capabilities throughout product classes. Chilly chain dealing with for specialty prescribed drugs, just-in-time lab reagent replenishment and device-specific kitting are examples of wants that exceed what a hospital-focused distributor usually manages. Consolidating these throughout classes beneath a purpose-built companion can cut back complexity and threat.
False impression 2. “Non-acute provide chains don’t want specialised experience.”
Every non-acute care setting has distinctive necessities, with workflows, acuity ranges and priorities various broadly. For instance, behavioral well being amenities might have medicine administration however minimal medical/surgical merchandise; house well being suppliers require moveable wound care kits; and ASCs demand strict surgical and sterilization provides. With out specialised distribution, these variations can result in clinician frustration after they lack the proper product/service combine to care for his or her sufferers.
These necessities span classes—from prescribed drugs to surgical packs to diagnostics—making category-specific experience important for non-acute distribution success.
False impression 3. “Customization for non-acute websites drives up prices and creates noncompliance.”
The aim of non-acute provide chain will not be unchecked customization however sensible standardization. Well being techniques want one formulary, bill and ordering platform to manage spend—whereas giving non-acute websites the power to handle smaller areas, restricted employees and variable demand. Methods like low unit of measure (LUM) distribution and localized stocking present adaptability with out sacrificing compliance or effectivity.
Specialised non-acute companions also can assist consolidate fragmented spend, significantly in areas like lab testing, by decreasing reliance on a number of direct producer contracts and streamlining sourcing beneath one umbrella.
False impression 4. “Service expectations are the identical throughout acute and non-acute websites.”
Hospitals have groups to deal with provide chain points; most non-acute websites don’t. Clinicians can not afford to spend time conserving observe of deliveries or resolving again orders. Non-acute distribution requires high-touch assist, responsive service and versatile fashions that hold clinicians centered on sufferers. This degree of planning and repair not solely prevents supply-related care delays and issues but additionally strengthens continuity of care—supporting suppliers’ objectives beneath value-based fee fashions.
False impression 5. “It’s dangerous so as to add one other distributor as a result of it’s going to trigger noncompliance with our GPO and first distributor.”
Many provide chain leaders worry that introducing a second distributor may lead to noncompliance with the well being system’s group buying group (GPO) contracts, major distributor and formulary.
However a dual-distributor mannequin will be structured to keep up compliance. By conserving acute and non-acute spend aligned beneath the identical formulary, well being techniques can unlock the advantages of specialised non-acute distribution with out jeopardizing pricing, contracts or standardization.
That mentioned, implementing a dual-distributor technique requires planning. Aligning IT techniques, synchronizing information and sustaining a unified formulary throughout acute and non-acute websites will be complicated. Shut collaboration amongst provide chain, IT and medical groups is essential to make sure seamless communication, correct stock monitoring and constant product availability.
Monetary and reimbursement workflows add one other layer of complexity. Acute settings typically have case charges or diagnosis-related group (DRG) primarily based reimbursement that bundle drug and provide prices into one fee. Conversely, non-acute websites incessantly depend on particular person claims for every remedy or process, so delayed prior authorizations or denials immediately impression their potential to reorder costly provides. Distributors that present tailor-made financing or credit score phrases assist mitigate this threat and guarantee entry to high-cost therapies that may have life-or-death implications for sufferers.
False impression 6. “Consolidating every little thing beneath one acute distributor builds resilience.”
The COVID-19 pandemic proved the other. Well being techniques that relied solely on an acute-focused distributor discovered themselves at an obstacle when non-acute websites had been deprioritized or disregarded of key allocations. Separating acute and non-acute provide chains creates better agility, higher aligns medical and operational workflows, strengthens provider relationships, and ensures continuity of care throughout all settings.
Resilience additionally will depend on higher forecasting and sourcing methods. Non-acute demand is decentralized and variable: Labs face sudden testing surges, ASCs want procedure-based stock planning and specialty therapies typically require patient-specific scheduling.
Acute-style forecasting creates waste and stockouts. Specialised distributors can assist websites with forecasting instruments custom-made to the non-acute surroundings, greater ranges of security inventory and diversified sourcing methods—making certain merchandise can be found when and the place they’re wanted.
False impression 7. “Innovation solely issues within the hospital provide chain.”
Non-acute care is more and more driving new fashions resembling telehealth, hospital-at-home, and distant monitoring. Supporting these fashions requires agile distribution, with superior instruments like real-time analytics, AI-driven forecasting, and tailor-made options for various care websites. A tech-enabled non-acute distributor isn’t a comfort—it’s a aggressive benefit in delivering environment friendly, patient-centered care.
Why McKesson Medical-Surgical is the Proper Associate for Non-Acute Distribution
As well being techniques prolong care past hospital partitions, the correct distribution technique turns into essential to balancing price, effectivity and resilience.
McKesson’s purpose-built non-acute infrastructure—spanning nationwide next-day supply, tailor-made logistics fashions, expertise integration, and medical consulting—equips healthcare organizations with the instruments to streamline operations, enhance monetary efficiency and strengthen the care continuum.
“Non-acute care is among the fastest-growing segments in healthcare, and it calls for a provide chain technique designed round its distinctive challenges,” mentioned Deborah Haywood, GM/Vice President, Well being Methods at McKesson Medical-Surgical. “We’ve constructed our non-acute distribution mannequin to present well being techniques confidence that each website—whether or not an ASC, behavioral well being clinic, or affected person’s house—has the correct merchandise, delivered the correct manner, each time. Our aim is to be greater than a provider; we’re a companion in advancing environment friendly, patient-centered care.”
