Newspaper article THE JOURNAL RECORD

Presbyterian Hospital `Revamping' Inventory Controls

Newspaper article THE JOURNAL RECORD

Presbyterian Hospital `Revamping' Inventory Controls

Article excerpt

At Presbyterian Hospital, management is moving toward a revamping of inventory controls intended to save the institution some $300,000.

Those are the expected short-term benefits.

When the reforms all are in place, the hospital may count continuing gains of approximately $200,000 a year. Some of the cost savings should be passed along to patients and third party payors. In fact, the benefits ought to be substantial.

As Chief operating officer Dennis Millirons observed at the conclusion of the hospital's massive inventory control study:

"We can compete better now. We have to compete."

The results of fundamental changes are beginning to add up. Not all of them are clear yet, nor has there been enough history to collect enough data for an unequivocal view. But there are a few clear signs.

Last week, assistant vice president Jim Underwood gave the cause a boost with a display of what's at stake in office supplies alone. People from all departments were invited to an Office Supply Fair to get a look at a collection of items said to represent about 15 percent of the hospital's total budget.

Example: Presbyterian uses 3.5 million sheets of white Xerox paper in a single year.

Example: It uses 9,680 rolls of scotch tape.

Example: And it uses 20,000 black ball point pens in just one year.

"Now," suggested Underwood, "if you were a vendor with a chance to get a sales contract involving these kinds of numbers, wouldn't you offer us a substantial discount."

He insists that they do, and that the hospital gets additional savings by cutting out duplications and buying only one standard brand or type.

Thus, in office supplies, the goal is to stock only the most commonly requested items. By doing so, vendors reciprocate with volume discounts. …

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