When it comes to healthcare supply chains, the Mayo Clinic believes that it is better to collaborate than compete with other organizations, Bruce Mairose, division chair of supply chain management sourcing and networks, told Supply Chain Dive.

Mairose said the Mayo Clinic already manages $5 billion of its own supply chain spend, so why not provide sourcing and contracting services for another 89 integrated delivery networks with $21 billion total in spend? This philosophy led to the development of several commercialized business ventures, including purchasing and freight services. Income from these revenue centers covers a bit less than half of the department’s operating expenses which are then reinvested in its supply chain. 

“Our organization is no different than anywhere else,” Mairose said. “If it’s a choice of buying a new MRI or CT scanner or buying something for Supply Chain, we know where the investment goes. So this has allowed us to invest in our own technology and our own people, and then make that available to other organizations.”

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