The Supply Chain Index: Evaluating the Healthcare Value Network

  • Report Details: This report is based on analysis of financial balance sheet and income statement data for the period of 2006-2012 and cooperative research conducted with Arizona State University.
  • Objective: To apply the Supply Chain Index methodology to 6 industries comprising the healthcare value network.
  • Hypothesis: The healthcare value chain composed of hospitals, pharmaceutical and medical device manufacturers lags other value chains on supply chain excellence. High margins have enabled a lax approach to supply chain. However, upcoming challenges including increasing regulation, the looming patent cliff, global complexity and the Affordable Care Act in the U.S. indicate now is the time to get serious about supply chain. The Supply Chain Index is a new tool members of this value network can use to benchmark and objectively measure supply chain improvement over a specific time period.

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