Abstract: A method and system for managing inventory for an ancillary medical facility that can be integrated into existing electronic healthcare records systems or practice management systems. The invention enables clinician users to order medical supplies electronically and to track the entire supply chain of the inventory item from the vendor/manufacturer to the patient. In one embodiment, requisitions are automatically generated when an inventory supply falls to a critical volume or reorder point. The system of the invention provides reporting modules that allow clinician users to analyze cost, inventory usage and adjustment, and supply conflict.