By Matt Putman, MBA, CMRP for SCM Professionals
Ambulatory Surgery Centers (ASCs) perform over 25 million procedures annually, yet many
health systems still treat them as a second-tier facility when considering a product, equipment,
and supply chain strategy. Is your sourcing strategy keeping up?
In the evolving landscape of healthcare delivery, non-acute and ambulatory surgery centers
(ASCs) are becoming increasingly critical components of the healthcare system. Traditionally,
health systems viewed these sites as feeder locations—loss leaders designed to channel
patients into acute care settings. However, forward-thinking leaders are shifting the paradigm
and asking a crucial question: How can these entities break even or generate a profit while
maintaining high-quality patient care?
A proven supply chain support strategy is the key to realizing this vision. By redefining the
approach to product selection, service contracting, and capital equipment planning, health
systems can craft a sourcing strategy that reflects the unique needs of non-acute care rather
than applying a cut-and-paste model borrowed from inpatient hospitals.
The Future of Non-Acute Care: A Strategic Mindset Shift
The rise of flexible care models, including in-person treatment, telehealth, and hybrid services,
has positioned non-acute spaces as essential hubs for cost-effective, patient-centric healthcare.
ASCs and outpatient clinics streamline procedures, reduce overhead costs, and improve
accessibility. To fully harness this potential, supply chain leaders must address the distinct
needs of these facilities, rather than treating them as extensions of hospital procurement.
Instead of defaulting on acute-care sourcing habits, health systems must adopt a tailored
strategy that considers:
- Customized Product Selection
Non-acute settings require specialized supplies—not simply a scaled-down version of
what hospitals use. A surgical pack designed for acute inpatient procedures is often
excessive for an ambulatory surgery center (ASC), resulting in unnecessary costs,
complexity, and waste. Similarly, outpatient clinics require streamlined consumables and
efficient inventory management to prevent waste. Creating a non-acute and ASC-
focused sourcing model presents an opportunity to save costs while delivering an
affordable product to patients.
- Strategic Equipment Planning
Every investment in non-acute care should be intentional and patient-driven. Health
systems must partner with vendors to ensure that capital equipment aligns with patient
needs and operational efficiency, rather than applying a one-size-fits-all approach to inpatient care. Inviting vendors to partner with care providers to determine the most suitable equipment needed in these non-acute areas will support a reliable outcome and opportunities for savings through informed equipment and consumable selection.
- Technology, Analytics, and AI Integration
Supply chain optimization in non-acute spaces requires predictive analytics, automation,
and AI-driven insights to refine ordering processes. Leveraging technology ensures the
right products are available at the right time, in the right quantities, and at the most cost-
effective rate. Integration with the Electronic Medical Record is a must, and health
systems must ensure that integration opportunities are available through technology that
is flexible and consistent.
Beyond Cost Centers: Making Non-Acute Spaces Financially Viable
One of the most significant mindset shifts in healthcare today is the understanding that non-
acute locations can be profit-generating entities, rather than merely serving as a feeder for
inpatient care. Organizations that view these spaces strategically can unlock new revenue
streams while improving patient outcomes.
A thoughtful sourcing strategy will:
- Ensure supply chain alignment with the unique demands of outpatient procedures. Gain insight into the business of non-acute and ASC spaces. Regular meetings and recording outcomes of decisions are a good place to start for alignment.
- Optimize cost structures through data-driven procurement models. Maintaining distribution through the acute-space distributor is appropriate, but ensuring the availability of suitable products through relationships with clinical teams and value analysis to drive cost-effective product selection is also necessary.
- Support scalability as patient preferences shift toward outpatient care. Distribution networks can support increases in product utilization. Good data analysis and forecasting are necessary to ensure the successful onboarding of new facilities and practices.
- Leveraging GPO Partnerships for Greater Savings and Strategic Sourcing Beyond standard commodity purchasing, a well-integrated Group Purchasing Organization (GPO) strategy can unlock deeper cost-saving opportunities and enhance overall procurement efficiency. Strengthening GPO engagement allows health systems to move beyond transactional purchasing, shaping impactful savings roadmaps and tailored contracting strategies that align with non-acute care needs.
By leveraging detailed analysis and data-driven insights, organizations can identify strategic sourcing opportunities that optimize cost structures while ensuring product availability and alignment with clinical priorities. This approach not only drives measurable financial benefits but also paves the way for long-term supply chain resilience in ambulatory surgery centers and outpatient facilities.
Non-acute and ASC spaces represent the future of healthcare, requiring an innovative sourcing strategy that maximizes efficiency, drives cost savings, and ensures long-term sustainability. Health systems that embrace this approach will position themselves at the forefront of the evolving care model, ensuring financial health while enhancing patient experiences.
Health systems that optimize non-acute and ASC procurement have achieved annual savings exceeding $1 million through GPO contract compliance and strategic branded product alignment. Additional soft savings and waste reduction are possible through the alignment of products used during patient discharge, follow-up visits, and ongoing home care, including wound therapy, physical therapy, and virtual consultations.
Current reimbursement strategies enable hospitals to charge significantly more for services that can also be performed at an ambulatory surgery center (ASC) or a physician’s office. This is due to infrastructure and overhead costs. Payers work to steer appropriate business to ASC locations, as highlighted by the change in classification for total joint replacements, which are now approved for outpatient use.
Final Thoughts
When health systems craft a sourcing strategy, a key aspect often overlooked is the non-acute and ambulatory surgery center space. These areas are now becoming the focal point for the future of healthcare delivery due to the flexibility of care (in-person, virtual, etc.) and the lower cost nature of the procedures. This allows for the development of a strategy for product selection, service contracting, and capital equipment planning that cannot be a cut-and-paste of the acute inpatient hospital space. Healthcare leaders who refine their sourcing strategies for non-acute spaces will unlock increased efficiency and profitability opportunities. How to explore? Connect with us at SCM Professionals.
For more insights into the future of healthcare operations and supply chain strategy, explore other
thought leadership content at SCM Professionals.