Weekly Business Insights 07/31/2024
Global Data: Supply Chain Drives M&A Deals Amid Decline. Seven Trends On Healthcare Supply Chain Professionals’ Radar. How 2 health systems are moving the needle on costs & outcomes with an optimized supply chain.
Global Data: Supply Chain Drives M&A Deals Amid Decline
The significance of mergers and acquisitions (M&A) to supply chain operations has become clear in the second quarter of 2024, as revealed by Global Data, Despite facing challenges from persistently high interest rates and sluggish economic growth across major economies, M&A activity centred around the supply chain has surged, marking it as the dominant theme during this period. According to Global Data’s latest report, 'Global M&A Deals in Q2 2024 - Thematic Intelligence,' supply chain-related deals amassed a remarkable US$39bn across 19 transactions, making it the largest theme among the top 200 deals.
Among the most noteworthy supply chain deals is Johnson & Johnson’s acquisition of Shockwave Medical for US$13bn, marking the largest transaction in the healthcare sector for Q2 2024.This deal is poised to enhance Johnson &Johnson’s MedTech division by integrating Shockwave’s advanced intravascular lithotripsy (IVL) technology, which addresses calcified coronary artery disease(CAD) and peripheral artery disease (PAD). “This transaction represents a unique opportunity to significantly advance our impact in cardiovascular intervention.”
Seven Trends On Healthcare Supply Chain Professionals’ Radar
Quality metrics have been on hospitals’ radar from a reimbursement perspective for quite some time, according to Olympus’ Goos. The Centers for Medicare and Medicaid Services(CMS) announced $1.66 billion in savings in 2021 resulting from doctors, hospitals, and other healthcare providers who participate in its Shared Savings Program as part of Accountable Care Organizations focused on delivering “the right care at the right time while avoiding unnecessary services” using quality benchmarks.3Tracking quality metrics for shared risk arrangements has made its way to healthcare contracting. Operational and financial performance are big measures in value analysis, according to Goos. Value analysis committees often have quality and reimbursement representation at the table when vetting technology for investment.
As trends emerge, it’s important to partner with the right solutions provider – one who goes beyond the transaction. A team that manages the entire comprehensive product portfolio, offers customized contracting for value-based customer solutions, and fosters strategic relationships with the nation’s leading group purchasing organizations to help our customers leverage group purchasing power. And while we can’t promise to solve all the prevailing issues of the day, we can commit to working together to meet the unique needs of each of our customers.
Seven Trends on Supply Chain.pdf (endeavorb2b.com)
How 2 health systems are moving the needle on costs & outcomes with an optimized supply chain
Most healthcare leaders view supply chain as a strategic asset that can be tapped to cut costs amid declining reimbursements and tightening operating budgets. But many health systems have yet to use the supply chain to effect clinical change.
"Supply chain can be a strategic bridge between clinical and operational outcomes," said Robert Rajalingam, senior vice president of strategic accounts and enterprise marketing at Dublin, Ohio-based Cardinal Health. "But as most of us are aware, healthcare is a bit slow to adopt some of these best practices."
Most healthcare leaders view supply chain as a strategic asset that can be tapped to cut costs amid declining reimbursements and tightening operating budgets. "Supply chain can be a strategic bridge between clinical and operational outcomes," Healthcare organizations are constantly looking for new areas to reduce budgets while expanding services. Supply chain innovations are increasingly becoming a target for these efforts. More hospitals are asking supply chain innovators to take on patient-centered initiatives, such as medication reconciliation or discharge pharmacy planning to help improve outcomes and prevent readmissions.