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SUPPLY CHAIN: What is a consolidated service center?

Health systems with sufficient scale and volume may benefit by establishing a consolidated service center (CSC) model as part of their supply chain strategy, according to consultant Jamie Kowalski .  These facilities are significantly larger than the typical hospital storeroom.

  • Large hospital storeroom: 10,000 sf stocking as many as 3,000 items
  • CSC: 60,000 to 250,000 sf stocking as many as 100,000 items

According to survey data, the number of CSCs in the U.S. has increased from 20 in 2012 to over 60 today.  Reasons why CSCs might not work out are also discussed in this brief article.

Source: Consolidated service center? If the shoe fits… (2016, December). The Journal of Healthcare Contracting. 13(6), 40, 42.

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