Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288503 
Year of Publication: 
2020
Citation: 
[Journal:] Operations Management Research [ISSN:] 1936-9743 [Volume:] 14 [Issue:] 1-2 [Publisher:] Springer US [Place:] New York, NY [Year:] 2020 [Pages:] 78-94
Publisher: 
Springer US, New York, NY
Abstract: 
Nearly every eighth German hospital faces an elevated risk of bankruptcy. An inappropriate use of inventory management practices is among the causes. Hospitals suffer from demand and lead time uncertainty, and the current COVID-19 pandemic worsened the plight. The popular business logistics concept of risk pooling has been shown to reduce these uncertainties in industry and trade, but has been neglected as a variability reduction method in healthcare operations research and practice. Based on a survey with 223 German hospitals, this study explores how ten risk pooling methods can be adapted and applied in the healthcare context to reduce economic losses while maintaining a given service level. The results suggest that in general risk pooling may improve the economic situation of hospitals and, in particular, inventory pooling, transshipments, and product substitution for medications and consumer goods are the most effective methods in the healthcare context, while form postponement may be unsuitable for hospitals due to the required efforts, delay in treatments, and liability issues. The application of risk pooling in healthcare requires willingness to exchange information and to cooperate, adequate IT infrastructure, compatibility, adherence to healthcare laws and regulations, and securing the immediate treatment of emergencies. Compared to manufacturing and trading companies, hospitals seem to currently neglect the variability reducing effect of risk pooling.
Subjects: 
Risk pooling
Demand uncertainty
Lead time uncertainty
Logistics
Hospitals
Germany
Questionnaire survey
Empirical research
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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