Question

HOW DO YOU Integrate healthcare supply-chain principles with TCE tenets to develop a list of considerations for a typical transaction in the supply chain

Answer 1

TCE is transaction cost economics. It is the cost associated in business with the exchange of various goods produced and various services imparted.

The transactions in healthcare revolve around the providers, stakeholders and patients. The transaction is focused on the delivery of care and the coordination of care. Most of the transaction cost is associated with the coordination of care. TCE is used to quantify these efforts in healthcare.

The list of considerations for TCEs in health care is:

• Outsourcing non core activities can be beneficial for TCE in healthcare
• Focus of healthcare must be on activities that establish mutuality of advantage
• TCE must be employed for risk assessment as well in healthcare
• Contract with other suppliers must aim at minimizing transaction cost of business