The Waste Gap

The Hidden Costs Draining Your Health System

Every health system has a waste gap—the difference between current spending and optimized operations. Most systems underestimate this gap by 40% or more.

67%

of health systems overestimate their supply chain efficiency by more than 20%

$4.8M

average annual waste across clinical, supply chain, and revenue cycle operations

18mo

typical delay between waste identification and corrective action

Anatomy of the Waste Gap

Understanding where waste occurs is the first step to eliminating it.

34%

Price Variance Waste

$1.2Mavg. annual

Average annual loss from paying above-benchmark prices for identical products across vendors.

26%

Utilization Inefficiency

$890Kavg. annual

Costs from clinical preference items that lack evidence-based justification.

22%

Contract Leakage

$650Kavg. annual

Revenue lost through off-contract purchases and missed rebate opportunities.

18%

Expiration & Waste

$420Kavg. annual

Direct losses from expired inventory and suboptimal par levels.

The Solution

Close the Gap with Data Intelligence

Our platform identifies waste across all categories in real-time, providing actionable recommendations that typically recover 60-80% of the waste gap within the first year.

  • Automated price benchmarking across 135k+ SKUs
  • Clinical utilization pattern analysis
  • Contract compliance monitoring
  • Predictive inventory optimization

Total Waste Gap Identified

$4.8M

Price Variance Waste34%
Utilization Inefficiency26%
Contract Leakage22%
Expiration & Waste18%
Recovery potential$3.2M - $3.8M