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This book was written to enhance the strategic contributions of the healthcare supply chain in a way that is most meaningful to hospitals’ and health-systems’ value-based goals.

It is a useful resource for healthcare leaders, supply chain professionals in different stages of their careers, healthcare vendors, and students. Value-based reimbursement rewards providers who lower costs while improving outcomes, creating a better, more cost-effective healthcare system. Today’s providers must evaluate the clinical effectiveness of a product by examining the outcomes of the procedures in which it was used. The decision to use a costlier but more clinically effective product might result in better care and a greater financial return.

This approach is called operating at the intersection of cost, quality, and outcomes—also known as CQO.

Supply chain executives operate at the center of purchasing decisions and work across disciplines. They affect—though sometimes indirectly—nearly every step of patient care delivery. This makes them particularly well suited to lead CQO initiatives. We know that the supply chain reduces costs.

Now supply chain professionals must become more clinically integrated and help improve patient outcomes by serving as champions of CQO.