UPMC and IBM to Apply Artificial Intelligence, Machine Learning to Transform Health Care Supply Chain

In an effort to apply data-driven insights to one of the most fundamental aspects of running a health care system, UPMC announced today that it has formed Pensiamo, an independent company that aims to help hospitals improve supply chain performance through a comprehensive source-to-pay offering, including cognitive analytics with IBM Watson Health technologies. IBM (NYSE:IBM) is a minority owner of Pensiamo. Supply chain costs are the second-largest and fastest-growing expense behind labor costs for health care providers [1]. The Institute of Medicine estimates that nearly one-third of health care spending is waste [2]. In today's dynamic environment, providers face mounting pressure to improve the effectiveness of patient care while controlling costs.