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Rising inflation impacts on the healthcare supply chain

Growing inflation, uncertainty, and reduced margins are forcing hospital leadership to relook at their supply chains.

With inflation expectations forecasted to remain higher for longer than expected, there is no return to pre-pandemic levels in sight. The Centers for Medicare & Medicaid Services (CMS) predicts that total hospital provider spending will increase by 50 percent from 2022-2030. With growing inflation, healthcare organizations must find ways to realize savings now more than ever.

Current economic conditions are putting pressure on healthcare leadership to find innovative ways to control costs. As a result of inflation, healthcare leaders must deal with a supply chain operating model shift, changes in labor and expense margins, and delivery of quality care with minimal technology. These various cost pressures are challenging organizations to go beyond price negotiations and towards more sophisticated cost-reduction tactics. In this paper, KPMG offers various initiatives that can help healthcare organizations identify areas for improvement to reduce costs and save money.

Dive into our thinking: 

The impacts of rising inflation on healthcare supply chain operations

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