Supplier Selection Criteria in the Healthcare Industry: A Comparison of Importance and Performace

Abstract

IN BRIEF As healthcare costs have risen, increased attention has been focused on the role of purchasing within hospitals. This article reviews the attributes traditionally used by purchasing managers in supplier selection and then examines the attributes currently being used within a health care setting. The conclusion is that even though the government and insurers have placed considerable pressure on healthcare providers to reduce costs, low price has not become a more important attribute in supplier selection than product quality, delivery, or service. Further, the research team found that, on average, suppliers are not meeting customer requirements on key supplier selection attributes.