Cardinal Health, Mayo Clinic Top Health Care Supply Chain: Gartner

By Nathan Eddy  |  Posted 2013-11-26

Cardinal Health took the top spot in IT research firm Garther’s Healthcare Supply Chain Top 25 for the third year in a row, thanks to strong peer and analyst recognition for the breadth of the company's capabilities across distribution and manufacturing.

The list, which identifies organizations transforming the health care value chain to meet new revenue challenges through enhanced service and lower costs with an increasing focus on improved patient outcomes, also included heavyweights such as CVS Caremark, Johnson & Johnson and GlaxoSmithKline.

Mayo Clinic is Gartner's highest ranked health system for the second year in a row and closed the gap significantly in the ranking on Cardinal Health, coming second in the ranking. Mayo received strong peer and analyst support along with quality of care and bond rating scores near the top.

"The Fifth Annual Healthcare Supply Chain Top 25 ranking is representative of all the main constituents of the health care value chain—manufacturers, providers, distributors and retailers," Eric O'Daffer, research director at Gartner, said in a statement. "The past couple of years have seen more large distributors and wholesalers investing in global growth markets that expand their scope and importance to the manufacturers."

The report noted many organizations added complexity to their supply chain and were challenged by another set of integrations to manage. Distributors and wholesalers in North America have made strategic moves to expand their reach in core markets, as well as overseas and even integrated with key customers in some cases.

"Retail pharmacies are vertically integrating supply chain while they position themselves as health care and wellness providers to their patient-consumers," O’Daffer continued. “Leading providers are innovating in new areas as well."

Already well-recognized among health systems and manufacturers alike for its leadership, Owens and Minor (O&M). O&M joins Cardinal Health as one of two companies to make the top five in all five years of the ranking.

The company, which rose through the rankings based predominantly on better recognition by peers and analysts, has been building a market strategy to expand both its existing market in North America and branch out overseas.

"There was definitely movement between companies further down on this year's Healthcare Supply Chain Top 25 ranking," Stan Aronow, research director at Gartner, said in a statement. "This reflects the realities of our times as consolidation, enabling profitable growth through supply chain, the impacts of globalization and an increasing focus on patient outcomes take center stage."

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