Across Malaysia news of the rising cost of healthcare is spreading especially post-pandemic. The government reported that Annual MOH Healthcare Budget is RM32B, Annual Spend Private Healthcare is RM45B (Approx) in the year 2020. This level of spending makes Malaysia as highest per capita health spending among other countries in the Southeast Asian region. The debate over how to stem the rising costs of healthcare in Malaysia.
Alliance Global Healthcare endorsed GPOs as a powerful entity offering competition and lowered prices in Malaysia’s medical supply market, our group purchasing organizations (GPOs) play an integral role in the medical supply chain, to reduce healthcare costs without compromising the efficiency and quality of care.
What is Healthcare GPO in Malaysia ?
Alliance Global Healthcare’s group purchasing organization (GPO) solution is a force that aids Malaysian healthcare providers or practitioner’s work at cost savings and efficiencies by integrating purchasing volume to negotiate discounts with manufacturers, distributors, and vendors.
Let's take a look at some of the biggest benefits of teaming up with Alliance Global Healthcare GPO:
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Alliance Global Healthcare reduce costs mainly through two mechanisms: lower transaction costs and lower prices through joint negotiation.
The healthcare supply acquisition process in Malaysia is complex, involving thousands of suppliers selling many more thousands of pharmaceuticals, devices, products, and services to thousands of healthcare providers. Because prices are frequently negotiated and negotiations can be complicated, the scope for transaction costs savings from reducing the number of negotiations is large. For perspective, imagine that 1,000 vendors each sell 10 products(glove) to each of 2,000 hospitals. If each vendor bargains separately with each hospital, there are 2 million negotiations to determine as many as 20 million prices. If the Alliance Global healthcare negotiates one price for each product on behalf of its alliance members, then the number of negotiations falls from 2 million to 1,000, and the number of prices negotiated falls from 20 million to 10,000.
Many research identifies several ways by which joint purchasing can yield lower prices than buyers can obtain on their own, including increasing a buyer’s bargaining strength, increased volume and other discounts, and more intense supplier competition. Evidence indicates that providers realize cost savings of 10% to 18% by using power of group buying, relative to the costs providers would have incurred if they negotiated prices on their own. Importantly, providers are likely to utilise some of these cost savings on to patients care.
With the advance technology and soaring costs of supplies, it's difficult for hospitals to keep up and plan appropriately. For hospitals in particular, it's especially important to have critical medication on hand to manage patient symptoms and facilitate the recovery process. However, a recent study predicted that prescription drug prices will increase by 7.61 percent next year. Rising drug prices are becoming a top concern for health care executives, making it essential to align with a GPO that can negotiate cost-effective contracts and offer necessary medications at lower expense. This will combat persistent drug shortages while also cutting costs.
Inventory management can take up a considerable amount of time. While Hospital administrators and leading doctors are busy individuals, Rather than negotiating supplier contracts and painstakingly tracking inventory on your own, partner with a alliance Global healthcare will streamline these processes and improve overall efficiency of hospital.
Alliance Global Healthcare work for you to connect you with the best suppliers and prices to operate effectively. Partnering with Alliance can offer significant benefits for health care providers and enable medical professionals to do their jobs more effectively. To learn more about what a capable Alliance partner can do for your health care institution, contact allianceglobalhealthcare now.
