An evaluation framework for measuring supply chain performance in the public healthcare sector: evidence from the Italian NHS

Innovations in supply chain (SC) management are rapidly spreading in public healthcare sectors across developed countries. In particular, healthcare managers and policymakers view SC innovation as a way to lower costs and improve quality. However, although the related rhetoric is strong, the literature provides little evidence of the benefits and performance of such SC initiatives. Above all, the literature lacks a sound conceptual framework for appraising SC management in public healthcare organisations. We argue that the public nature of healthcare and the specificities of the healthcare context require a specific theoretical approach to identifying the appropriate dimensions of SC initiatives to evaluate. Drawing from an extensive literature review and a longitudinal analysis of an inductive case study – a public hospital network developed in Tuscany (ESTAV), Italy – this work proposes a framework for assessing supply chain performance in the public healthcare sector. In addition, an empirical analysis was conducted to test the soundness and robustness of the framework, and this article presents conclusions regarding its applicability and managerial implications.

[1]  E. Borgonovi Principi e sistemi aziendali per le amministrazioni pubbliche , 2005 .

[2]  Charles R. Gowen,et al.  Enhancing supply chain practices through human resource management , 2003 .

[3]  H. Stadtler Supply Chain Management: An Overview , 2015 .

[4]  D. Lambert,et al.  SUPPLY CHAIN MANAGEMENT , 2003 .

[5]  G. McGuire People in public procurement , 2012 .

[6]  R. Calvi,et al.  When excessive cost savings measurement drowns the objectives , 2008 .

[7]  de G Guus Vries,et al.  A framework for production control in health care organizations , 2001 .

[8]  Thomas Johnsen,et al.  An initial classification of supply networks , 2000 .

[9]  Alastair Baker,et al.  Crossing the Quality Chasm: A New Health System for the 21st Century , 2001, BMJ : British Medical Journal.

[10]  Kate Silvester,et al.  Managing Variation in Demand: Lessons from the UK National Health Service , 2006, Journal of healthcare management / American College of Healthcare Executives.

[11]  Hamid Pourjalali,et al.  Improving activities and decreasing costs of logistics in hospitals: a comparison of U.S. and French hospitals , 2001 .

[12]  T.C.E. Cheng,et al.  Measures for evaluating supply chain performance in transport logistics , 2002 .

[13]  Craig M. Froehle,et al.  The State of Healthcare in OR / , 2022 .

[14]  E. Litvak,et al.  Cost and quality under managed care: irreconcilable differences? , 2000, The American journal of managed care.

[15]  E. L. Nichols,et al.  Introduction to Supply Chain Management , 1998 .

[16]  M. Moore,et al.  Managing for Value: Organizational Strategy in for-Profit, Nonprofit, and Governmental Organizations , 2000 .

[17]  Hartmut Stadtler,et al.  Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies , 2010 .

[18]  F. Davidoff,et al.  Managing unnecessary variability in patient demand to reduce nursing stress and improve patient safety. , 2005, Joint Commission journal on quality and patient safety.

[19]  Mary Chatfield,et al.  Material Management and Purchasing for the Health Care Facility , 1983 .

[20]  J. Fontan,et al.  Medication errors in hospitals: computerized unit dose drug dispensing system versus ward stock distribution system. , 2003, Pharmacy world & science : PWS.

[21]  C. Gelderman,et al.  Public procurement and EU tendering directives – explaining non‐compliance , 2006 .

[22]  James F. Campbell,et al.  The Network of Logistics Decisions , 2005 .

[23]  Kathleen E. McKone-Sweet,et al.  The Ailing Healthcare Supply Chain: A Prescription for Change , 2005 .

[24]  M. Moore Creating public value : strategic management in government , 1995 .

[25]  J. Telgen,et al.  Developing a typology of organisational forms of cooperative purchasing , 2007 .

[26]  R. Grol Improving the quality of medical care: building bridges among professional pride, payer profit, and patient satisfaction. , 2001, JAMA.

[27]  A. Donabedian,et al.  Striving for Quality in Health Care: An Inquiry into Policy and Practice , 1991 .

[28]  R. Kaplan,et al.  The balanced scorecard--measures that drive performance. , 2015, Harvard business review.

[29]  Charles E Noon,et al.  Understanding the Impact of Variation in the Delivery of Healthcare Services , 2003, Journal of healthcare management / American College of Healthcare Executives.

[30]  E. Freidson Claims Examined. (Book Reviews: Profession of Medicine. A Study of the Sociology of Applied Knowledge) , 1970 .

[31]  Jan Telgen,et al.  Public procurement: International cases and commentary , 2007 .

[32]  P. Baker,et al.  The Handbook of Logistics and Distribution Management , 2001 .

[33]  Clifford P. McCue,et al.  Public purchasing: who’s minding the store? , 2001 .

[34]  Jan Mainz,et al.  Errors in the medication process: frequency, type, and potential clinical consequences. , 2005, International journal for quality in health care : journal of the International Society for Quality in Health Care.

[35]  G. Kendall Improving the quality of medical care. , 1989, HealthSpan.

[36]  J. Telgen,et al.  Public procurement in perspective , 2007 .

[37]  Davor Vašiček,et al.  Public sector management , 2013 .

[38]  Asoo J. Vakharia,et al.  Outsourcing inventory management decisions in healthcare: Models and application , 2004, Eur. J. Oper. Res..

[39]  J. Nollet,et al.  The development of group purchasing: an empirical study in the healthcare sector , 2003 .

[40]  M. Braglia,et al.  Vendor Selection Using Principal Component Analysis , 2000 .

[41]  A. Cox Public procurement in the European community: Is a fully integrated market achievable? , 1993 .

[42]  P. Jarrett Logistics in the health care industry , 1998 .

[43]  N Morotti,et al.  La logistica a supporto dei servizi sanitari nell' Area Vasta Toscana. Modelli gestionali e possibili sviluppi , 2006 .

[44]  Stephen Ackroyd,et al.  PUBLIC SECTOR SERVICES AND THEIR MANAGEMENT , 1989 .

[45]  Karl F. Doerner,et al.  Logistics of health care management , 2007, Comput. Oper. Res..

[46]  Sub‐Optimality in NHS Sourcing in the UK: Demand‐Side Constraints on Supply‐Side Improvement , 2005 .

[47]  S. Chopra,et al.  Supply Chain Management: Strategy, Planning & Operation , 2007 .

[48]  A. Edmondson,et al.  METHODOLOGICAL FIT IN MANAGEMENT FIELD RESEARCH. , 2007 .

[49]  Jwm Will Bertrand,et al.  Design requirements for health care production control systems , 1999 .

[50]  Hossein Sharifi,et al.  Towards Theory Building in Agile Manufacturing Strategy—A Taxonomical Approach , 2007, IEEE Transactions on Engineering Management.

[51]  Jan M. H. Vissers,et al.  Patient flow-based allocation of inpatient resources: A case study , 1998, Eur. J. Oper. Res..

[52]  Christian A. Ullrich Introduction to Supply Chain Management , 2014 .

[53]  Nick Barber,et al.  Hospital drug distribution systems in the UK and Germany ‐ a study of medication errors , 1999, Pharmacy World and Science.

[54]  Reza Zanjirani Farahani,et al.  Supply chain and logistics in national, international and governmental environments , 2009 .

[55]  P. Jarrett,et al.  An analysis of international health care logistics: the benefits and implications of implementing just-in-time systems in the health care industry. , 2006, International journal of health care quality assurance incorporating Leadership in health services.

[56]  Paul M. Griffin,et al.  Benchmarking Warehousing and Distribution Operations: An Input-Output Approach , 2001 .

[57]  Rene G. Rendon Commodity sourcing strategies: processes, best practices, and defense initiatives , 2005 .

[58]  R. Resar,et al.  Patient Flow in Hospitals: Understanding and Controlling It Better , 2004, Frontiers of Health Services Management.

[59]  K. Eisenhardt Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[60]  Sylvia Horton,et al.  Managing the new public services , 1993 .

[61]  Edgar Tissot,et al.  Observational study of potential risk factors of medication administration errors , 2003, Pharmacy World and Science.

[62]  E. Cantù,et al.  New funding arrangements in the Italian National Health Service. , 2001, The International journal of health planning and management.

[63]  E. Ferlie,et al.  Evidence based primary care? A multi-tier, multiple stakeholder perspective from Chile. , 2001, The International journal of health planning and management.

[64]  Andrew Cox,et al.  Supplier relationship management as an investment: evidence from a UK study , 2005 .

[65]  Stefano Villa,et al.  Misurare la performance della logistica del farmaco: applicazione di una metodologia a due casi studio , 2010 .

[66]  Nicholas J. Aquilano,et al.  Operations Management nella produzione e nei servizi , 2008 .

[67]  R. Burgess In the Field: An Introduction to Field Research , 1984 .

[68]  S. Moschuris,et al.  Outsourcing in public hospitals: a Greek perspective. , 2006, Journal of health organization and management.

[69]  J. Telgen,et al.  Challenges facing public procurement , 2007 .

[70]  Eliot Freidson,et al.  The Reorganization of the Medical Profession , 1940 .

[71]  Swapan Kumar Roy,et al.  Supply chain management: An overview , 2013 .

[72]  R. Yin,et al.  Case Study Research: Design and Methods (4th ed. , 2009 .

[73]  J E Ware,et al.  Methods For Measuring Patient Satisfaction With Specific Medical Encounters , 1988, Medical care.

[74]  Sylvia Horton,et al.  Managing People in the Public Services , 1996 .

[75]  Darin Matthews,et al.  Strategic procurement in the public sector: A mask for financial and administrative policy , 2005 .

[76]  George A. Boyne,et al.  Public and Private Management: What's the Difference? , 2002 .

[77]  Barry Bozeman,et al.  Risk Culture in Public and Private Organizations , 1998 .

[78]  M. Zairi,et al.  Re-engineering pharmaceutical care: towards a patient-focused care approach. , 2000, International journal of health care quality assurance incorporating Leadership in health services.

[79]  C. Hepler,et al.  Opportunities and responsibilities in pharmaceutical care. , 1990, American journal of hospital pharmacy.

[80]  Edy Warnoto,et al.  SUPPLIER RELATIONSHIP MANAGEMENT , 2012 .