Procurement case study
Regional SNF Network Cuts AWC Spend 22% via Formulary Consolidation
14-facility regional skilled nursing network, ~600 chronic wound census
Challenge
The network's wound care spend grew 31% year-over-year, driven by eight overlapping amniotic and synthetic skin substitute SKUs across facilities, inconsistent application protocols, and ~14% inventory waste from expired stock.
Intervention
Procurement led a 90-day formulary review with the medical director group. Outcome: consolidated to two primary amniotic products (one dual-layer, one particulate), standardized weekly application protocols aligned to MAC LCD, switched to lyophilized formats across low-volume sites to eliminate –80 °C dependency, and implemented monthly site-level waste reporting.
Results
Total AWC spend reduction
−22%
vs prior 12-month baseline
Inventory waste reduction
14% → 3%
SKU count
8 → 2
Average healing time
Unchanged
no clinical degradation
Per-patient episode cost
−18%
Takeaway
Most multi-site AWC overspend traces to SKU proliferation and waste, not unit price. Consolidation paired with format selection matched to site volume is the highest-leverage procurement intervention available.
Last updated: 2026-06-28