Strategic procurement practices in healthcare organizations and their impact on Medicaid and Medicare cost containment

Balogun, Adeseun Kafayat and Alaba, Helen Ayodimeji and Adebayo, Kaosara Temitope and Shodimu, Oluwabanke Aminat (2025) Strategic procurement practices in healthcare organizations and their impact on Medicaid and Medicare cost containment. World Journal of Advanced Research and Reviews, 25 (1). pp. 1863-1872. ISSN 2581-9615

Strategic procurement in healthcare organizations has emerged as a critical factor in addressing the escalating costs within Medicaid and Medicare programs. This comprehensive review synthesizes current literature and empirical evidence on innovative procurement practices and their impact on healthcare cost containment. Through extensive analysis of procurement transformation across healthcare organizations, this review identifies key trends in value-based purchasing, digital integration, and supply chain optimization. Findings indicate that healthcare organizations implementing strategic procurement practices achieve substantial cost reductions in medical supplies and equipment while maintaining or improving quality standards. The integration of artificial intelligence and blockchain technologies in procurement processes has demonstrated particular promise, with early adopters reporting enhanced transparency and reduced administrative burden. This review also reveals significant barriers to implementation, including organizational resistance, regulatory constraints, and technical infrastructure limitations. The findings suggest that successful procurement transformation requires a systematic approach combining technological innovation, organizational change management, and policy adaptation. These insights provide valuable guidance for healthcare administrators, policymakers, and researchers working to optimize healthcare resource allocation and control costs in public health insurance programs.