Hospitals across the United States spent approximately $25.4 billion more than necessary this year on supply chain operations, according to a new report from Chicago-based Navigant Consulting. That number is up more than 10 percent compared to 2017.

“Even with ongoing efforts to improve supply chain processes and product use, we aren’t seeing the needle move in the right direction as significant savings opportunities remain for many hospitals and health systems,” Rob Austin, director at Navigant, said in a prepared statement. “At a time when operating margins continue to decline, we have found that hospital leadership not fully investing in their supply chain are missing chances to optimize the financial potential of their organizations.”

How can hospitals improve in this area? According to the report, providers should work on reducing pricing variation and the use of unnecessary drugs and products. High-performing supply chain departments do well because they engage data-driven physicians, enhance collaboration among providers and leverage data.

If hospital leaders could avoid this issue, the report noted, they would have another $11 million each to invest in improving patient care at their facilities. That money could help build two outpatient surgery centers, for instance, or pay for the salaries of 42 primary care physicians.