kindrClinical

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