Centralize, or not to centralize support service operations, what is right and what is wrong?

Well, I certainly wish there was a simple answer to this question, but unfortunately there is not.  In most cases, it really depends on many factors including maturity of a health system, breath and scale of operations, financial opportunity, to name a few.  As health systems continue to explore ways to leverage their scale and streamline operations, the natural question is, should we do something different to address near term challenges and create future flexibility for the organization? For any forward-thinking organization, the answer is always yes, but many don’t know how to begin, leading to confusion and lack of direction.

We’ve had the privilege of helping many leading organizations by providing an independent perspective on what’s right for them. The solution is never to simply copy another system’s approach—doing so often leads to disappointment and erodes trust from clinicians and leadership. Instead, health systems must begin with their own vision: Where are we headed, and what changes should we make to ensure support functions align with our clinical vision?

We advise clients to perform an unbiased operational assessment of their support services to determine what works and what needs improvement.

Key questions to ask:

  • What is the size of geographic footprint of clinical services.
  • What is the expected growth strategy (e.g., mergers, acquisitions, divestments, etc.)
  • What is the degree of consistency for people, process and technology.
  • What is the maturity for data and system integration.
  • What is the organization’s risk tolerance for change and improving operations.

Through our experience, we’ve found that many health systems may appear large enough on paper to centralize operations, but they lack the operational maturity to do so successfully. The redundancy across systems can become a financial burden.

Key considerations: Areas typically overlooked or not addressed properly when considering centralization include:

  • Clinical and leadership expectations
  • Organizational structure
  • Talent knowledge and capabilities
  • System integration and support
  • Data and inventory management capabilities
  • Transportation capabilities

There’s no right or wrong answer when it comes to centralizing operations. Organizations must carefully consider how support services need to evolve to support patient care. Simply shifting existing operations is rarely the right move; thoughtful evaluation and planning are essential before proceeding.

Remember, you’re not alone in this journey—many organizations are working through similar questions.

Let us help. For over 40 years, St. Onge Company has partnered with organizations of all sizes to craft solutions that enable their supply chains to run at peak efficiency. Our Healthcare Team is currently collaborating with many of the nation’s top healthcare organizations to optimize today’s supply chains and design those of the future.

Our mission is to enhance operations at every stage, ensuring it ultimately benefits the patient at the bedside.

For information on how we can help your organization, contact Tom Redding at tredding@stonge.com to set up an exploratory conversation.

At St. Onge, we believe in advancing the industry by sharing our collective experiences and knowledge. This includes learning from our clients, industry friends, and colleagues. To support this mission, we launched the “Taking the Supply Chain Pulse” podcast, where we share stories, experiences, and insights to further drive innovation and best practices in supply chain management.

Here is the link: https://takingthesupplychainpulse.buzzsprout.com.

Please listen, subscribe and provide comments. If you know anyone we should talk with, or any topic we should address, please contact us.

St. Onge Company is Proud to Once Again Have Been Ranked Among the Highest-Scoring Businesses on Inc. Magazine’s Annual List of Best Workplaces for 2024

We have been named to Inc. Magazine’s annual Best Workplaces list for the second year in a row! Featured in the May/June 2024 issue, the list is the result of a comprehensive measurement of American companies that have excelled in creating exceptional workplaces and company culture, whether operating in a physical or a virtual facility.

From thousands of entries, we are one of only 535 companies honored.

Click here to see our listing!