Unlocking Value in Healthcare Procurement: Strategic Solutions for a Changing Sector

 

Healthcare organisations across Australia are under increasing pressure to deliver better outcomes with fewer resources. Rising costs, workforce constraints, and shifting patient expectations are driving a fundamental rethink of how healthcare procurement and supply chains operate. At August Consulting, we help healthcare and aged care providers reframe procurement as a strategic lever, one that supports service delivery, compliance, and cost sustainability. 

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Our approach to healthcare procurement is grounded in commercial rigour, sector insight, and a deep understanding of operational realities. We partner with providers to build smarter, more agile procurement models that unlock measurable value. 

 

Healthcare Viability Challenges 

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Rising Costs of Healthcare – Escalating labour, capital, and medical consumables costs strain budgets. 

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• Regulatory and Compliance Pressures – Accreditation standards, quality frameworks, and evolving regulations add overhead. 

• Digital Transformation and Cybersecurity – Significant investments required in digital health solutions and cybersecurity safeguards. 

• Workforce Shortages and Competition – Shortages of healthcare professionals combined with competition across public, acute, and private hospitals. 

• Patient Expectations and Experience – Demand for higher standards of care, personalised options, and improved convenience. 

• Health Insurance Pressures – Declining coverage and cost-containment by insurers affect revenue. 

• Impact of COVID-19 – Ongoing supply chain disruptions, financial instability, and operational challenges. 

• Sustainability Demands – Balancing environmental goals with financial realities. 

 

 

Reframing Procurement in healthcare 

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Procurement in healthcare is no longer a back-office function. It’s a strategic capability that influences clinical outcomes, financial performance, and organisational resilience. Whether sourcing medical consumables, negotiating service contracts, or managing supplier risk, procurement in the healthcare industry must be commercially mature, clinically aligned, and future-ready. 

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August Consulting works with healthcare organisations to uplift procurement capability across the board. We help define success upfront, engage stakeholders early, and ensure procurement decisions are grounded in real business needs - not just process compliance. 

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Healthcare procurement and Supply Chain Management: A Strategic Imperative 

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Healthcare procurement and supply chain management must evolve to meet today’s challenges. Traditional models focused on transactional buying are no longer fit for purpose. Instead, organisations must adopt integrated, data-driven approaches that optimise cost per patient/day, ensure continuity of supply, and manage compliance and risk. 

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We support clients in redesigning supply chain processes, enhancing systems, and building governance frameworks that drive efficiency. Our scalable service offerings are tailored to align with your operational context - whether you're a regional aged care provider or a multi-site health network. 

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Building Strategic Partnerships 

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Strong supplier relationships are critical to procurement success. August Consulting helps clients develop strategic partnerships with vendors that deliver clinical and commercial value. Our healthcare procurement partners are selected not just for price, but for performance, innovation, and alignment with long-term goals. 

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We facilitate collaborative sourcing models - such as alliances, hubs, and group purchasing organisations (GPOs) - that allow providers to aggregate volume, leverage market position, and access enhanced capability. These partnerships are underpinned by robust evaluation criteria, clear accountability, and shared benefit frameworks. 

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Smarter Systems: Healthcare procurement software 

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Technology is transforming procurement. Healthcare procurement software enables organisations to automate workflows, improve visibility, and make smarter decisions. From contract lifecycle management to spend analytics, these platforms provide the tools needed to manage complexity and unlock value. 

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August Consulting supports clients in selecting, implementing, and optimising procurement software solutions. We ensure systems are fit-for-purpose, integrated with existing infrastructure, and aligned with commercial and clinical priorities. Our focus is on delivering real outcomes - not just digital transformation for its own sake. 

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Change Management in Healthcare 

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Successfully navigating these challenges requires structured healthcare change management that engages clinicians, staff, and stakeholders at every stage. August Consulting’s approach is built around three phases: 

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Engage – Identify stakeholders, communicate with leadership and clinicians, and build consensus for change. 

Validate – Pilot initiatives, benchmark through peer groups, and gather clinical feedback to ensure adoption. 

Embed – Drive compliance via KPIs, embed behavioural change, and maintain clear communication with leadership. 

 

Tailored Healthcare procurement solutions 

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There is no one-size-fits-all approach to procurement. That’s why we offer tailored healthcare procurement solutions designed around your specific needs. Whether you're navigating regulatory reform, responding to market disruption, or seeking to improve cost control, we help you build procurement models that are scalable, compliant, and commercially sound. 

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Healthcare Service Offerings 

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Procurement and Supply Chain Consulting for Healthcare 

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At August Consulting, we partner with healthcare providers, hospitals, and health networks to deliver measurable improvements in cost optimisation, supply chain resilience, and patient outcomes. Our customised solutions address the unique challenges of healthcare procurement, compliance, and transformation, ensuring sustainable value in a rapidly changing industry. 

Shape 

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Procurement as a Service  

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• Access to best-in-class healthcare procurement expertise that accelerates value and improves patient care delivery. 

• Tailored procurement strategies designed for hospital systems, aged care providers, and clinical service networks. 

• End-to-end support from opportunity diagnosis to execution, ensuring compliance with healthcare regulations and quality standards. 

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Opportunities and Cost Optimisation  

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• We leverage healthcare data analytics and visualisation to provide insights into clinical and non-clinical spend, including specialists categories such as surgical consumables, prosthesis, pharmaceuticals and equipment. 

• Identify opportunities for cost reduction without compromising patient care quality. 

• Deliver clear recommendations and a roadmap to address short-term cost pressures and long-term healthcare system sustainability. 

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Supply Chain Diagnostics & Improvements  

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• Supply chain operations often provide significant improvement opportunities through value stream mapping, systems enablement, data, and clear roles and responsibilities, as well as joint accountability to drive performance.  

• August Consulting helps organisations to review their supply chains and identify a range of quick wins and initiatives that deliver efficiencies and benefits. 

 

Strategic Sourcing and Market Engagement  

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• Support health organisations in supplier negotiations, tender management, and market engagement for medical devices, consumables, and clinical services. 

• Deliver sustainable cost reductions while maintaining supplier quality and compliance with healthcare standards. 

• Apply market research and spend analysis to create sourcing strategies aligned with patient-centred care. 

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Capability, Transformation & Change Management  

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• Guide healthcare organisations through change management during major procurement or system reforms. 

• Assess, develop, and implement fit-for-purpose supply chain and procurement models tailored for the healthcare sector. 

• Ensure compliance with regulatory frameworks, accreditation standards, and third-party risk management. 

• Support staff adoption and cultural alignment for lasting transformation. 

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Data Analytics & Healthcare Insights (Key Differentiator) 

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• Unique strength: August Consulting’s ability to collate and integrate multiple healthcare data sets, from finance, procurement, billing  external data sources 

• Deliver actionable insights that enable executives to make evidence-based decisions on cost savings, supply resilience, and sustainable benefits over time.  

• Provide real-time analytics dashboards that empower healthcare leaders with visibility across their procurement and supply networks. 

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Value based procurement healthcare: Driving Outcomes 

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The shift to value based procurement healthcare is reshaping how organisations define success. Instead of focusing solely on upfront cost, providers are now considering total cost of ownership, patient outcomes, and supplier innovation. This approach aligns procurement with broader organisational goals and supports sustainable service delivery. 

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August Consulting helps clients implement value-based procurement models that reward performance, incentivise innovation, and improve care quality. We design contracts that link payment to outcomes, develop supplier scorecards, and embed clinical engagement into procurement processes. 

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Commercial Capability and Governance 

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Healthcare and aged care sectors often operate with lower levels of commercial maturity compared to other industries. August Consulting works to uplift capability by embedding best practice processes, strong organisational design, and governance models that bring accountability. 

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We help build procurement teams that are commercially astute, clinically aware, and strategically aligned. Our frameworks ensure procurement decisions are transparent, defensible, and optimised for long-term value. 

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Data Analytics & Insights – A Key Differentiator 

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At August Consulting, we recognise that data-driven decision making is central to healthcare transformation. Our unique strength lies in our ability to collate and analyse multiple data sets, spanning procurement, financial, clinical, and supply chain metrics  to deliver actionable insights. 

•    Identify inefficiencies and cost-saving opportunities across procurement and supply chains. 

•    Track supplier performance and contract compliance. 

•    Indicative market benchmarking   

 

Navigating Market Disruption 

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COVID-19 and other market disruptors have exposed vulnerabilities in traditional procurement models. Supply chain risk, price volatility, and supplier insolvency are now front-of-mind for healthcare leaders. August Consulting helps clients respond with agility - developing alternative operating models, diversifying supply sources, and building resilience into procurement strategy. 

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We also support clients in influencing the market - developing strong supplier partnerships within key spend categories and ensuring end-user clinician support for procurement decisions. 

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Why August Consulting? 

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Our team brings deep expertise in healthcare procurement, commercial strategy, and operational delivery. We understand the nuances of the healthcare environment - from clinical governance to regulatory compliance - and tailor our approach to suit your context. 

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We don’t just follow process. We solve problems. 

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Whether you're looking to reduce unnecessary spend, improve supplier performance, or build a more agile procurement function, August Consulting is your strategic partner in healthcare procurement.