Integration vs Collaborative Redesign Strategies of Health Systems’ Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United States

BackgroundGiven the widespread disruptions to supply chains in 2020 because of the COVID-19 pandemic, questions such as how health systems are shaping strategies to restore the supply chain disruptions are essential to have confidence in health systems’ supply chain model str...

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Main Authors: Jiban Khuntia, Frances J Mejia, Xue Ning, Jeff Helton, Rulon Stacey
Format: Article
Language:English
Published: JMIR Publications 2022-06-01
Series:JMIR Formative Research
Online Access:https://formative.jmir.org/2022/6/e35317
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author Jiban Khuntia
Frances J Mejia
Xue Ning
Jeff Helton
Rulon Stacey
author_facet Jiban Khuntia
Frances J Mejia
Xue Ning
Jeff Helton
Rulon Stacey
author_sort Jiban Khuntia
collection DOAJ
description BackgroundGiven the widespread disruptions to supply chains in 2020 because of the COVID-19 pandemic, questions such as how health systems are shaping strategies to restore the supply chain disruptions are essential to have confidence in health systems’ supply chain model strategies. Plausibly, health systems have an opportunity for redesign, growth, and innovation by utilizing collaborative strategies now, compared to the usual strategies of integrating their existing supply chains to reduce inefficiencies. ObjectiveThis study focuses on teasing out the nuance of supply chain integration versus collaborative redesign strategies for health systems in the post-COVID-19 new normal. We focus on 2 research questions. First, we explore the impact of perceived supply chain challenges and disruptions on health systems’ supply chain integration (SC-INTEGRATION) and collaborative redesign (SC-REDESIGN) strategies. Second, we examine the outcomes of integration and collaborative redesign strategic choices on growth and service outcomes. MethodsWe used data for this study collected through a consultant from a robust group of health system chief executive officers (CEOs) across the United States from February to March 2021. Among the 625 health system CEOs contacted, 135 (21.6%) responded to our survey. We considered supply chain–relevant strategy and outcome variables from the literature and ratified them via expert consensus. We collected secondary data from the Agency for Healthcare Research and Quality (AHRQ) Compendium of the US Health Systems, leading to a matched data set from the 124 health systems. Next, we used ordered logit model estimation to examine CEO preferences for partnership strategies to address current supply disruptions and the outcomes of strategy choices. ResultsHealth systems with higher disruptions would choose integration (positive, P<.001) over redesign, indicating that they still trust the existing partners. Integration strategy is perceived to result in better service outcomes (P<.01), while collaborations are perceived to lead to greater growth opportunities (P<.05); however, the role of integration in growth is not entirely ruled out (combined model, P<.001). Plausibly, some health systems would choose integration and collaborative redesign models, which have a significant relationship with both services (combined model, P<.01) and growth, establishing the importance of mixed strategies for health systems. ConclusionsThe cost of health care continues to rise, and supply-related costs constitute a large portion of a hospital’s expenditure. Understanding supply chain strategic choices are essential for a health system’s success. Although collaboration is an option, focusing on and improving existing integration dynamics is helpful to foster both growth and services for health systems.
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spelling doaj.art-4be3e97488dd4fbeaea1f7452affeb992023-08-28T22:18:26ZengJMIR PublicationsJMIR Formative Research2561-326X2022-06-0166e3531710.2196/35317Integration vs Collaborative Redesign Strategies of Health Systems’ Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United StatesJiban Khuntiahttps://orcid.org/0000-0002-8280-3231Frances J Mejiahttps://orcid.org/0000-0002-9132-7257Xue Ninghttps://orcid.org/0000-0002-6916-6960Jeff Heltonhttps://orcid.org/0000-0002-7803-461XRulon Staceyhttps://orcid.org/0000-0001-7853-9813 BackgroundGiven the widespread disruptions to supply chains in 2020 because of the COVID-19 pandemic, questions such as how health systems are shaping strategies to restore the supply chain disruptions are essential to have confidence in health systems’ supply chain model strategies. Plausibly, health systems have an opportunity for redesign, growth, and innovation by utilizing collaborative strategies now, compared to the usual strategies of integrating their existing supply chains to reduce inefficiencies. ObjectiveThis study focuses on teasing out the nuance of supply chain integration versus collaborative redesign strategies for health systems in the post-COVID-19 new normal. We focus on 2 research questions. First, we explore the impact of perceived supply chain challenges and disruptions on health systems’ supply chain integration (SC-INTEGRATION) and collaborative redesign (SC-REDESIGN) strategies. Second, we examine the outcomes of integration and collaborative redesign strategic choices on growth and service outcomes. MethodsWe used data for this study collected through a consultant from a robust group of health system chief executive officers (CEOs) across the United States from February to March 2021. Among the 625 health system CEOs contacted, 135 (21.6%) responded to our survey. We considered supply chain–relevant strategy and outcome variables from the literature and ratified them via expert consensus. We collected secondary data from the Agency for Healthcare Research and Quality (AHRQ) Compendium of the US Health Systems, leading to a matched data set from the 124 health systems. Next, we used ordered logit model estimation to examine CEO preferences for partnership strategies to address current supply disruptions and the outcomes of strategy choices. ResultsHealth systems with higher disruptions would choose integration (positive, P<.001) over redesign, indicating that they still trust the existing partners. Integration strategy is perceived to result in better service outcomes (P<.01), while collaborations are perceived to lead to greater growth opportunities (P<.05); however, the role of integration in growth is not entirely ruled out (combined model, P<.001). Plausibly, some health systems would choose integration and collaborative redesign models, which have a significant relationship with both services (combined model, P<.01) and growth, establishing the importance of mixed strategies for health systems. ConclusionsThe cost of health care continues to rise, and supply-related costs constitute a large portion of a hospital’s expenditure. Understanding supply chain strategic choices are essential for a health system’s success. Although collaboration is an option, focusing on and improving existing integration dynamics is helpful to foster both growth and services for health systems.https://formative.jmir.org/2022/6/e35317
spellingShingle Jiban Khuntia
Frances J Mejia
Xue Ning
Jeff Helton
Rulon Stacey
Integration vs Collaborative Redesign Strategies of Health Systems’ Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United States
JMIR Formative Research
title Integration vs Collaborative Redesign Strategies of Health Systems’ Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United States
title_full Integration vs Collaborative Redesign Strategies of Health Systems’ Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United States
title_fullStr Integration vs Collaborative Redesign Strategies of Health Systems’ Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United States
title_full_unstemmed Integration vs Collaborative Redesign Strategies of Health Systems’ Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United States
title_short Integration vs Collaborative Redesign Strategies of Health Systems’ Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United States
title_sort integration vs collaborative redesign strategies of health systems supply chains in the post covid 19 new normal cross sectional survey across the united states
url https://formative.jmir.org/2022/6/e35317
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