Hospitals waste an estimated $25.4 billion every year due to supply chain inefficiencies. Nearly 40% of healthcare providers have had to cancel or reschedule procedures because of product shortages, and 67% of supply chain leaders spend more than 10 hours a week managing inventory issues. These inefficiencies don’t just impact budgets, they affect patient care.
A fragmented, reactive supply chain is often the root cause. Without centralized oversight, health systems struggle with excess inventory, procurement challenges and logistical bottlenecks that drive up costs. A consolidated service center (CSC) model is a proven way to reduce waste, cut costs and improve operational efficiency — but making the case for change requires data-driven financial justification.
That’s where Tecsys’ CSC ROI Calculator comes in. It’s a resource for health system leaders to explore the financial impact of transitioning to a CSC model. By entering a few key details, supply chain teams can get a clearer picture of potential savings and operational improvements, helping them make more informed decisions.
How a Healthcare ROI Calculator identifies supply chain savings
Many hospitals still rely on outdated supply chain models that lead to costly inefficiencies. Without a centralized approach, they experience:
- Excess inventory and expired products that tie up capital and contribute to waste
- Time-consuming manual processes that require staff to track, order and manage inventory across multiple locations
- Higher procurement costs due to fragmented purchasing, preventing organizations from leveraging bulk discounts
- Stockouts and supply disruptions that lead to expensive emergency purchasing and potential delays in patient care
Transitioning to a CSC model can help hospitals address these inefficiencies, but measuring the financial impact isn’t always straightforward. A healthcare ROI calculator can provide a clearer picture of potential cost savings and operational improvements, making it easier to evaluate the benefits of this approach.
How the ROI Calculator works
For leaders, identifying inefficiencies is only the first step — quantifying the financial impact is what drives decision-making. This tool is designed specifically for healthcare supply chains, incorporating industry best practices and real-world hospital data to provide an accurate and actionable evaluation. The results include:
- A financial breakdown of where supply chain inefficiencies are costing the hospital
- Projected savings estimates from transitioning to a CSC model
- Hard data to support budget discussions and investment decisions
With these insights, supply chain leaders can move from theoretical discussions to tangible, cost-saving strategies.
Why more health systems are using ROI calculators for CSC evaluations
Health systems that have adopted a CSC approach have seen measurable improvements in cost savings, efficiency and resilience. By using a healthcare ROI calculator, organizations can accurately project financial gains and operational benefits before making major supply chain investments.
A centralized model helps:
- Lower supply chain costs by reducing over-purchasing and waste
- Improve efficiency through automation and greater inventory visibility
- Strengthen supply chain resilience by mitigating shortages and disruptions
The transition requires investment, but with the right data in hand, healthcare leaders can make a compelling case for change — one that prioritizes both financial sustainability and high-quality patient care.
Find out how much you could be saving
Every dollar saved on supply chain inefficiencies is a dollar that can be reinvested in patient care. The CSC ROI Calculator is a practical, easy-to-use tool that helps healthcare leaders take control of their supply chain costs.
Run the numbers, see the potential and take the first step toward a more efficient, cost-effective supply chain.
