JHC June 2020

Page 10

EXECUTIVE INTERVIEW

What happens next One expert discusses how we arrived at the crises that surfaced amid the COVID-19 pandemic, and what the road ahead may look like.

In many ways, the COVID-19 pandemic was “the perfect storm” for the U.S.

low number of beds, “because we put

healthcare supply chain, said Dr. Eugene Schneller, a professor of supply chain man-

so much into outpatient surgical centers

agement at the University of Arizona State’s W. P. Carey School of Business, and the

and other settings.”

principal at Health Care Sector Advances.

Second, the U.S. has made an unrelentless push towards lowering costs. “One of the things we’ve done is push

8

“If you think about the last decade

And by doing that we turn out to be one

lean,” said Schneller. “Lean means that

to two decades in healthcare, the mergers

of the countries at the tail of the curve

we have relatively few products. We’ve

and acquisitions, the changes in technol-

of number of beds per thousand, with

pushed all of the distribution of those

ogy, a number of things have happened,”

one of the fewest.” While Japan, North

products over to our traditional distribu-

he said. “Number one, we pushed as

Korea and others are leaders in this

tors. And they then are looking at their

much as we could outside of the hospital.

area, the United States has a relatively

inventories and those inventories they’ve

June 2020 | The Journal of Healthcare Contracting


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