Enhancing hospital logistics through service modularity

PURPOSE: Health-care organizations face the dual challenge of reducing costs while improving service quality, making hospital logistics a key area for innovation. This study aims to examine how service modularity, originating in manufacturing and service operations, can be applied to hospital logistics to enhance efficiency, flexibility and staff experience. DESIGN/METHODOLOGY/APPROACH: A qualitative multi-case study was conducted across eight hospitals in Georgia. Data were collected through 15 semi-structured interviews, 4 focus groups and document analysis. The data were analyzed using NVivo software. FINDINGS: Three interrelated dimensions of modularity were identified: division and classification of services and materials; process differentiation, including automation and decoupling of support functions from clinical work; and organizational centralization and specialization. These arrangements were associated with improved efficiency, cost control and enhanced staff experience by reducing health-care workers' involvement in routine logistical tasks. Implementation challenges included communication gaps, resistance to standardization and outdated Information and Communication Technology systems. The effectiveness of modularity depended on organizational readiness, technological capacity and staff engagement. RESEARCH LIMITATIONS/IMPLICATIONS: This study has several limitations. First, it is based on a qualitative case study of eight hospitals in Georgia, which limits generalizability. Second, hospitals were selected based on their engagement in logistics innovation, potentially introducing selection bias. Third, findings rely on self-reported experiences rather than objective performance measures. Finally, the focus on logistics processes excludes direct analysis of clinical workflows and patient outcomes. Future research should address these limitations through mixed-method and comparative designs. PRACTICAL IMPLICATIONS: The findings indicate that modular logistics arrangements benefit a broad range of health-care workers, including nurses, physicians, pharmacists, logistics professionals and administrative staff. By clarifying interfaces and reallocating support tasks away from clinical workflows, modularity improves staff experience and operational transparency while generating efficiency gains. Hospital managers should view modular logistics as an organizational design choice rather than a purely technical intervention, ensuring alignment with digital infrastructure and staff engagement strategies. SOCIAL IMPLICATIONS: At the societal level, improved staff experience and operational efficiency may indirectly contribute to better patient outcomes and quality of care. By reducing unnecessary operational strain on health-care workers across professional groups, modular logistics supports a more sustainable health-care workforce - an increasingly critical concern in aging societies with growing service demand. Nevertheless, these broader societal impacts require further empirical validation. ORIGINALITY/VALUE: This study contributes novel empirical evidence by applying service modularity theory to hospital logistics management in a transitional health-care context. It advances existing modularity research by demonstrating how structural, process and organizational dimensions interact in practice and by linking modular logistics arrangements to staff experience and coordination outcomes. The study proposes an empirically grounded conceptual framework of modular hospital logistics, offering actionable insights for hospital managers and contributing to the broader literature on health-care operations and service design.