Hospitals take high-tech approach to supply chain

Hospitals, facing growing pressure from insurers to cut costs, are taking an axe to their supply chains. New forms of payment triggered by the Affordable Care Act have threatened to reduce revenue for hospitals, prompting providers to add services and constrain costs. Many hope that technology long used in retail and other industries will help them cut inventory costs by millions of dollars. Up until last year, the team managing supplies for BJC HealthCare's network of 12 hospitals in Illinois and Missouri kept track of medical devices the old fashioned way: by counting them, said Marcia Howes, chief supply chain executive at the company. [Subscription Required]