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How Carolinas HealthCare quickly saved $6.6 million by focusing on surgical supply costs

April 26, 2017

    In our work with members, we're often surprised by how many organizations don't know they could save millions of dollars by reducing surgical supply costs, all without harming quality of care.

    Depending on the vendor, hospitals can spend up to three times as much for supplies that are essentially identical—with the only difference being physician preference. By identifying unwarranted variation in supplies and making cost-effective changes, the potential for system-wide savings is huge.

    Of course, as many hospital executives will tell you, this is easier said than done.

    Carolinas' story

    One organization that has led the way in engaging its physicians in supply cost reduction initiatives is Carolinas HealthCare System (CHS), a large system based in Charlotte, North Carolina that includes 47 owned, managed, or affiliated facilities.

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