Logistics in the health care industry

Abstract

The purpose of this study was to undertake a diagnostic investigation of the international health care logistical environment to determine if regulatory policies or industry procedures have hindered the implementation of just‐in‐time systems. The analysis was conducted in a systematic manner and compared the anticipated benefits with those validated in other industries from the implementation of just‐in‐time. The study also compared the health care industry environments of the USA, UK, and Germany with the manufacturing industry. The author focussed on answering: first, why has the health care industry not implemented just‐in‐time; second, is it feasible for a healthcare provider to implement a just‐in‐time logistical system; and third, what benefits will a health care provider achieve by implementing just‐in‐time. Concludes that controlling health care pricing requires reducing product cost or continues to place limits on product prices, quantities of services, or both. An alternative approach to controlling prices is to restructure the market for health services to encourage greater price competition among providers.