Newsroom

Press Releases

STAMFORD, Conn., November 19, 2015

Gartner Announces Rankings of Its 2015 Healthcare Supply Chain Top 25

Mayo Clinic Takes No. 1 Slot in the Seventh Annual Healthcare Supply Chain Top 25 Ranking

Gartner, Inc. has released its seventh annual Healthcare Supply Chain Top 25 ranking. The 2015 ranking recognizes companies across the healthcare value chain that demonstrate leadership in improving patient care and lowering costs.

"Alignment to patient outcomes, company strategy and future revenue models in healthcare are the key themes for 2015," said Eric O'Daffer, research vice president at Gartner. "We see innovation coming from mature supply chains that have stable organizations and strong talent. These organizations are most ready to successfully lead in consolidation and collaboration initiatives that will advance the healthcare value chain."

Mayo Clinic took the top spot in the Healthcare Supply Chain Top 25 for 2015 after three years at No. 2 (see Table 1). Mayo's supply chain continues to be a model of steady improvement for this $9.8 billion healthcare provider across 22 hospitals and associated care sites in five states. Mayo focuses on the strategic alignment of supply chain with the cost and quality of patient care through its one-year and five-year rolling strategic plan refresh process. The company has deep partnerships with strategic suppliers/service providers, and Gartner anticipates that Mayo will continue to build supply chain capabilities and innovate for years to come.

Table 1. The Healthcare Supply Chain Top 25 for 2015

2015 Rank

Company Name

Three-Year Weighted ROA (2012 to 2014)1

One-Year, End-of-Year Inventory Turns (2014)2

Bond Rating3

Truven Health System Percentile Score4

Peer Opinion5 
(88 voters)

Gartner Opinion5 
(21 voters)

Composite Score6A,6B

1

Mayo Clinic

   

AA

98.26

897

324

8.43

2

Cardinal Health

3.6%

10.5

   

1340

310

8.35

3

Intermountain Healthcare

   

AA+

93.04

934

292

8.27

4

Owens & Minor

3.6%

9.5

   

848

291

6.87

5

Mercy

   

AA-

80.00

556

284

6.57

6

CVS Health

6.2%

9.6

   

746

242

6.38

7

McKesson

2.9%

11.7

   

730

214

6.15

8

AmerisourceBergen

2.3%

13.6

   

498

226

5.69

9

Johnson & Johnson

11.1%

2.8

   

1118

181

5.63

10

Walgreens Boots Alliance

6.1%

9.0

   

447

209

5.29

11

Banner Health

   

AA-

83.91

299

191

4.97

12

BD

10.0%

2.8

   

822

189

4.96

13

Advocate Health Care

   

AA

93.91

267

106

4.35

14

UPMC

   

AA-

20.87

619

156

4.24

15

Medtronic

5.7%

1.8

   

642

190

4.08

16

Pfizer

8.1%

1.7

   

537

194

4.03

17

BJC HealthCare

   

AA

43.48

375

114

3.73

18

Henry Schein

8.2%

5.6

   

192

157

3.70

19

Cleveland Clinic

   

AA-

32.17

627

85

3.67

20

Abbott

6.3%

3.5

   

625

106

3.65

21

AbbVie

11.4%

3.9

   

271

141

3.61

22

Duke University Health System

   

AA

89.57

300

35

3.58

23

Ascension Health

   

AA+

26.96

175

158

3.55

24

GlaxoSmithKline

9.7%

1.7

   

334

172

3.49

25

Baptist Health South Florida

   

AA

90.43

111

68

3.46

Notes:
1 ROA: ((2014 net income/2014 total assets) * 50%) + ((2013 net income/2013 total assets) * 30%) + ((2012 net income/2012 total assets) * 20%)
2 Inventory Turns: 2014 cost of goods sold/2014 inventory
3 Bond Rating: All ratings were mapped to the Standard & Poor's (S&P) rating system using an industry-standard mapping system
4 Truven Health System Percentile Score: Data taken from the Truven Health Analytics 15 Top Health System Percentile Score
5 Peer Opinion and Gartner Opinion: Based on each panel's forced-rank ordering against the definition of "high-quality patient care at an optimal economic cost"
6A Composite Score, Health Systems: (peer opinion * 35%) + (Gartner opinion * 35%) + (bond rating * 15%) + (Truven ranking * 15%)
6B Composite Score, Nonhealth Systems: (peer opinion * 30%) + (Gartner opinion * 30%) + (ROA * 20%) + (inventory turns * 20%)
2014 data used where available. Where unavailable, latest available full-year data used.
All raw data normalized to a 10-point scale prior to composite calculation.

Source: Gartner (November 2015)

Cardinal Health dropped to the second spot after a four-year run in the No. 1 spot. As a pharmaceutical wholesaler, medical-surgical distributor, solution provider and technology company, Cardinal touches almost everyone in the healthcare value chain at some point. Cardinal continues to build on collaborative solutions with healthcare providers, retailers and manufacturers, as well as quickening the pace on acquisitions. Connecting the end-to-end supply chain with more owned manufacturing capabilities keeps Cardinal on the innovation frontier.

Intermountain Healthcare retained the third ranking for 2015 during a year of progress and change. Intermountain is a leader in organizational understanding that investing in supply chain people, process and technology across all nonlabor spend contributes to the balance of patient care, cost and profitability.

"The Healthcare Supply Chain Top 25 for 2015 reflects the progress leaders have made in laying the foundation for future success," said Mr. O'Daffer. "Supply chain leaders are educating their teams, trading partners and company leadership on the value of supply chain to improve service, lower costs, and enable growth and sustainable profits."

More detailed analysis is available in the report "The Healthcare Supply Chain Top 25 for 2015." Additional analysis on the Healthcare Supply Chain Top 25 is also available in the complimentary Gartner webinar "Gartner Healthcare Supply Chain Top 25 for 2015."

About the Healthcare Supply Chain Top 25 Methodologies

Consistent with Gartner's Top 25 research methodologies, the Healthcare Supply Chain Top 25 ranking is derived from two main analyses: quantitative measures and opinion. Quantitative measures provide a view into how companies have performed in the past, and establish proxy connections between financial health, performance and supply chain excellence. The opinion component offers an eye to value chain leadership and demonstrated supply chain performance — crucial characteristics of Gartner's Top 25 ranking. These two components are combined into a total composite score.

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

Contacts