Hospitals Embrace Cloud-Based Supply Chain Management: Efficiency, Cost Reduction, and Resilience Drive Transition

Hospitals and health systems are increasingly turning to cloud-based technology to enhance their supply chain management, according to a recent survey conducted by Global Healthcare Exchange (GHX). The findings of this survey, which polled more than 100 healthcare leaders, reveal that the top drivers for transitioning to the cloud include improving efficiency, reducing costs, and enhancing operational resilience.

Cloud Technology Becomes the New Norm

Cloud-based solutions are swiftly becoming standard practice within hospitals and health systems, impacting various domains, including supply chain, clinical, finance, and HR teams. The survey data suggests that nearly 70% of all hospitals and health systems are likely to have adopted a cloud-based approach to supply chain management by 2026.

The benefits of this transition extend beyond cost reduction. It also promises to enhance decision-making, agility, data security, and privacy while streamlining processes.

Archie Mayani, Chief Product Officer at GHX, commented on the pivotal role of cloud technology: "One of the largest opportunities in healthcare is empowering providers to better control surging costs while ensuring patients receive the best possible care. Data show the cloud plays a vital role in making that a reality."

Key Survey Findings

1. Positive Momentum and Sentiment

• Nearly 80% of healthcare leaders who have embraced cloud technologies for supply chain management describe the transition as a positive change.
• Approximately 45% of hospitals and health systems have already transitioned to cloud technologies for supply chain management, and many more plan to follow suit in the next 24 months.

2. Data Security and Privacy Gains

• Cloud technology offers advanced cybersecurity measures, with 73% of survey respondents affirming that the move has improved data security and privacy.

3. Cloud Adoption Drivers

• The survey reveals that mergers and acquisitions (M&A) activity has influenced the decision to incorporate cloud technologies, with approximately 74% of respondents citing expansion through acquisition or other means.
• Financial pressures are also a significant driving force, as 71% of survey participants noted the importance of reducing waste and costs, regardless of whether they have implemented cloud technologies.

Archie Mayani added, "Once organizations have successfully migrated to the cloud, many quickly shift their attention to optimizing their investment and consider more advanced technology such as artificial intelligence and machine learning, as well as demand forecasting to amplify the benefits of the cloud."

This shift towards cloud-based supply chain management underscores the healthcare industry's commitment to achieving greater efficiency, reducing costs, and ensuring the security and privacy of sensitive patient data.