Posted by Carola Endicott on Thu, Jun 24, 2010 @ 04:38 AM
At WaveMark we have come across many examples of inventory and supply chain systems in healthcare which require a person to count products by hand. The goal of these manual counts is to determine the daily requisitions for cycle counts or for an annual physical count. In our earliest days back in 2005 we worked with a customer in a Cath Lab in Utica, NY where we validated the ability of an RFID-enabled cabinet to accurately count its contents. We printed out a report generated by the cabinet and then the two of us proceeded to count the entire contents of the cabinet - about 200 medical supplies - coronary stents and balloons. Every week we thought we had found an error in the cabinet. And every week, we found both of us were wrong. We recounted and finally one after another, we matched the automated count. Besides providing statistical validation of the ability of RFID tags to be read by a specially outfitted cabinet, this also provided a window into an area for enormous improvement opportunity. That lab went from one RFID-enabled cabinet to 10 in order to expand this capability to all of their high value products and they went from spending 2 hours a day compiling their order to 15 minutes.
Since that time, we have accumulated many stories of humans who can't count accurately, or if they do , take a long time to do so. In one busy Cath Lab in Iowa we found that they were spending an hour and a half every morning counting stents and balloons on hand in order to place an order into their Materials system. This cumbersome system was very time consuming and error-prone because a human being was doing something humans aren't good at - counting. The time and accuracy gained from RFID-enabled cabinets allowed them to reduce their "just-in-time" stock and spend valuable human beings' energy on activities more suited to their natural talents.
In another example, the WaveMark inventory management software powered by the cabinets reduced the daily counting chore to the point where the inventory person was able to take on inventory duties for an additional department, work previously done by a nurse who spent half his time counting and ordering. By allowing the nurse to go back into the procedures where he was most valuable, the hospital was able to save money and increase employee satisfaction.
We are fortunate to live in a time when technology takes on the chores that are tedious, leaving more time for human beings to focus on activities that are more interesting, valuable, and, even sometimes, fun.
This is only a small part of one Cath Lab's inventory. This photo represents $500,000 in inventory. RFID enabled cabinets provide accuracy and peace of mind.
Posted by Colleen Terry on Wed, Mar 31, 2010 @ 09:46 AM
No matter what decade you're in, reducing costs will never go out of style. And, no matter what your industry, reducing inventory levels can have compounding side affects. So, how do you accomplish one without adversly affecting the other?
While the healthcare industry has the added challenge of reducing costs, while improving patient safety and care, many hospitals have found success by implementing RFID solutions. Using RFID to track inventory and usage levels of individual products -in real-time- has proven to reduce specialty department inventory costs and improve patient safety. Can this be true? Here are 4 real world examples of inventory reductions in hospitals, after implementing RFID for the real-time tracking of critical medical supplies:
- A Midwest hospital identified a 25% reduction in inventory levels by comparing current target inventory levels against proposed levels based on actual product usage.
- A Northeast hospital was able to bring consigned and paid stock down from $400,000 to $100,000 in just a few months.
- A New York hospital has seen an overall inventory reduction of 33%, despite the fact that some SKU's actually increased.
- A Southeast hospital closed the gap of on-hand inventory levels and target inventory levels by almost 100%, by using real-time automated replenishment.
With more and more healthcare providers seeing black when it comes to inventory carrying costs, RFID is earning a prominent place in the hearts of hospital administrators.
Learn more about how RFID can improve the bottom line at your hospital, while improving patient care. Download case study.
Posted by Colleen Terry on Wed, Mar 17, 2010 @ 10:02 AM
While some may prefer a pot of gold, most of us would rather a bank of knowledge to help in choosing a healthcare IT vendor. A thorough review, evaluation and understanding of the healthcare technology offering can save thousands of dollars, improve clinical workflow and prevent lots of headaches down the road.
KLAS, an organization dedicated to helping healthcare providers make informed technology decisions by reporting accurate, honest, and impartial vendor performance, provides this information to providers, at no cost. While KLAS offers a convenient service to providers at the right price, their scope is limited by the breadth of their researchers and depth of provider participants.
Combine what you learn from KLAS, peers, and your own evaluation to make a smart decision by considering these important vendor qualities:
- Vendor reliability, trustworthiness and follow through-talk to peers, search the web and read reviews on vendor performance to ensure you are partnering with a responsive, professional and progressive organization.
- Product/Service/Solution features and functionality-read product reviews, visit showcase sites, view product demonstration webinars, or get a trial version to fully understand the feature set and how it will be implemented and used in your specific setting.
- Training- a top notch vendor will offer initial training, whether on-site, via phone or as a digital training session. Find out what will be covered and if it can be customized to your situation.
- Systems integration-be sure to understand how the new solution integrates with your existing systems to maximum your financial benefit and improve workflow.
- Post sales support-- in the form of on-going training, technical assistance and product maintenance. In some cases, your purchase may include both hardware and software, and understanding the upgrade path, maintenance plan, and technical assistance for each is critical.
To read vendor reviews currently available in KLAS, click here.
To add a vendor to KLAS and provide feedback, click here.
To learn more about how peers can assist in choosing a vendor, read this article.
Posted by Colleen Terry on Wed, Mar 03, 2010 @ 08:05 AM
The annual ACCA Cardiovascular Leadership conference gets underway next week at the Sheraton Atlanta Hotel in Atlanta, GA. Always a hot topic, healthcare reform opens the door's to this year's conference.
Opening keynote speaker, Jack Lewin, MD, CEO, American College of Cardiology, will offer an insider's view of the healthcare reform agenda, including how current legislation could affect your organization. Addressing the tough issues-from disparities to cost-effectiveness to physician payment-Dr. Lewin reviews ACC tools and initiatives to help you implement evidence-based guidelines, measure quality and improve patient care. Also, hear how to prepare yourself to face the increased scrutiny of the CMS Recovery Audit Contractor (RAC) program.
One of the few conferences focused on the issues and concerns relevant to cardiovascular administrators, here are 4 reasons you should consider attending ACCA this year:
•Pre-conference tour of CDC with a guided tour from Belinda Minta, MPH, MBA, Program Consultant, Division for Heart Disease and Stroke Prevention, CDC - Health Perspective on Heart Disease and Stroke Prevention.
•Listen to top keynote speakers address pressing healthcare issues including healthcare reform and new reimbursement models.
•Network with other administrators and build relationships with a peer group that can become your sounding board and think tank as you face future challenges.
•Browse the exhibit floor to learn about new technologies, products, and listen to poster demonstrations hand-picked by editorial staff for their relevance in providing valuable insights to cardiovascular administrators.
Memorial Healthcare System in Chattanooga, TN will be presenting a poster on how RFID in healthcare is helping to reduce costs and improve care in the cath lab. To learn more, read this article.
Visit the ACCA Conference page for event details.
Posted by Colleen Terry on Thu, Feb 25, 2010 @ 07:11 AM
The Healthcare Information and Management Systems Society, and co-sponsor American Society for Quality, introduced the Stories of Success! case study program to share quality and patient safety improvement success stories.
The Stories of Success project is focused on linking the use of HIT with two major national initiatives to generate change, The Joint Commission National Patient Safety Goals and the National Priorities Partnership recommendations for national focus for improvement activities. Stories of Success! showcases outstanding accomplishments in the adoption and use of information technology to achieve improved patient safety, quality, effectiveness and efficiency. The chosen case studies highlight the fulfillment of the national priorities established by the National Priorities Partnership (NPP) and The Joint Commission's National Patient Safety Goals (NPSG).
Six "Tier 1" applicants (the most informative submissions aligned with the Stories of Success! purpose) were chosen, one of which highlights the use of RFID to manage inventory of critical medical supplies. Read the Mercy Medical Center case study and learn how RFID is improving patient safety in their Cath and EP labs.
"With the submissions we received, those who are using IT every day showed us and identified how technology helps support the six priorities of National Priorities Partnership and The Joint Commission's national patient safety goals and priorities. These from-the-field examples, focused on national quality and performance improvement, pinpointed technology's positive impact on the lives of patients," said Louis H. Diamond, M.B.Ch.B., F.A.C.P., F.C.P. (S.A.), chair of the HIMSS NPP/JC (National Priorities Partnership/The Joint Commission) Work Group that is leading this project.
Read about the Stories of Success project
Read the chosen case studies
To learn how RFID can help your facility improve patient safety, read the Mercy Medical Center case study.
Posted by Colleen Terry on Wed, Feb 03, 2010 @ 07:11 AM
The RFID in Healthcare show in Dallas last week highlighted many uses of RFID. As in past years, the emphasis was again on asset tracking and using active and UHF tags. There was, however, one presentation that excited attendees with its proven success in using item-level HF RFID tracking to streamline workflow for clinicians.
The implementation of RFID for hospital inventory management has provided this particular hospital with the automation and information necessary to enable clinicians to be better clinicians.
Streamlined Clinical Processes = Better care for patients
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Nurses and techs are now confident when the physician asks for a particular product, they will have it readily available. Automated RFID tracks product usage and recommends par levels, ensuring the right products are always available. Prior to RFID, nurses and techs sometimes had to leave the procedure room - making multiple trips daily to other buildings or down the stairs - in search of a particular product needed for a case
- Clinicians are able to stay in the room longer with patients, post-op. Physical counts are completed every 20 minutes by the RFID cabinets and procedure rooms are easily restocked using an automated restocking report - even 2 - 3 times per day, freeing nurses from the duty of counting products before and after each procedure
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Nurses can confidently pull any product from the shelf and be relieved of the constant worry of an expired or recalled product reaching a patient. Automated expiration and recall management, with built in safety alerts, is available with RFID. 
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Documenting cases is accurate and fully automated with the integration of RFID inventory control with other hospital systems. Nurses are no longer burdened with manual data entry; just a wave the box sends product barcode and serial/lot # to the appropriate hospital information systems for billing, replenishment and clinical documentation
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Job satisfaction for nurses has improved dramatically. Nurses are happier being nurses and not worrying about supplies.
Read a case study article on how RFID is improving patient care through nurse satisfaction.
Posted by Colleen Terry on Wed, Dec 23, 2009 @ 12:30 PM
1. Check expiration dates on products and rotate as necessary
Keeping a keen eye on expiration dates has saved hospitals hundreds of thousands of dollars. Neglect it, and wasted dollars add up quickly. Establish a procedure that helps you to be diligent about expiration tracking, then rotate products using those with the earliest expiration date first. If you know you will not use the quantity on hand before they expire, call the manufacturer's rep and ask to have them swapped out before it's too late. Whether those products are on consignment or you own them-if they expire on your shelf you're most likely paying the bill.
2. Know what you have and how often you use them
Having an accurate count of inventory levels at all times can yield tremendous financial benefits in managing the dynamic flow of inventory in a busy department. However, all too often the task of tracking inventory gets pushed aside while more pressing matters are attended to. Many specialty departments feel the burden of escalating inventory costs when its budget time. If you don't have a handle on what's on the shelves and what gets used in a specified timeframe, then you likely don't know how much and how often items should be ordered. This, admittedly unglamorous, yet critical task is so important that it has a direct impact on your bottom line and the next 3 tips. Get this down and the CFO will be singing your praises.
3. Evaluate bulk buy opportunities before making the commitment
Device reps often have special bulk buy opportunities that could save the hospital thousands--or cost that if you haven't done your homework. Be sure to closely analyze the amount of product used on a monthly, quarterly, semiannual and annual basis. If your usage patterns support the quantity required in the bulk buy, you could bring your per unit cost down dramatically and save thousands. However, if you don't know what you use and how often, then executing a bulk buy could cost much more in the long run. Don't rush into what looks like a great offer, or you could be writing off outdated inventory.
4. Set target inventory levels and order against them
Tip #2 advised that you should know what you have and what you use. This mantra is important in setting realistic target inventory levels. Although this may take some time at first, it can save a bundle in the long run, so spend the time. First, know what you have on hand, study usage patterns and then determine the appropriate quantities that should be available at all times. This is your target inventory. Setting target inventory levels determines reorder points, smooths ordering patterns and reduces the cost associated with obsolescence. Setting target inventory levels is a dynamic process and needs to be reviewed often enough to accommodate spikes in procedure volume or new product trends.
5. Search for missing items right away
Ever wonder where that unused stent went after the procedure was completed? Did you even know it was missing? Specialty departments are busy; products get pulled from shelves for possible use, unfortunately, many items that are unused go missing and no one even knows about it. Again back to tip #2, if you know what you have, then you should know if something is missing. Hospitals have discovered items --still in their original packaging-in the soil room ready to be sent to the dumpster. Had they not known what they had, they wouldn't know to look for the missing item. One hospital admitted to losing the equivalent of one stent per month-that's about $2500 a month or $30,000 a year. Establish a tracking system so you always know what you have, it will save your bottom line, and maybe even your bottom!
Learn how one hospital trimmed its costs by proactively controlling inventory levels. Watch the video now.
With these tips, trimming your inventory costs can be as pleasurable as trimming the Christmas tree! Happy Holidays!
Posted by Colleen Terry on Wed, Dec 16, 2009 @ 10:42 AM
The cost of medical advances continues to escalate, requiring labs to invest more dollars in products that promise to provide a higher standard of living for suffering patients. Inventory costs can quickly spiral out of control when the quantity and variety of products becomes more than a person can count and manage. Oftentimes, specialty procedure labs get caught with having too much product on hand, because the alternative has far greater consequences. This "just in case" inventory costs labs tens, sometimes hundreds of thousands of dollars a year in carrying costs. To effectively manage the right mix of products, analyze your usage patterns closely and set reorder points accordingly.
Managing inventory in a special procedure lab such as the Cath lab, is a fine balancing act. Making sure the right products are available at the right time for the right procedure is the minimum every patient deserves. With the variety of products increasing and the expiration times decreasing, The Joint Commission implemented a time out procedure in response to improving patient safety. This requirement states that doctors must review the details of the procedure with the patient or a family member, including the type of procedure, exactly where on the body the procedure will take place and verification that the necessary products are available to perform the procedure. To ensure the right products are available establish par levels to optimize inventory by first understanding product specific usage patterns.
Effectively managing expiration dates and efficiently responding to product recalls can be a daunting task for any lab. To be in compliance, labs cannot have any product with an expiration date older than today's date or have a recalled product on the shelf, for doing so can put patients at risk. Thus, The Joint Commission inspects labs unannounced, ensuring labs are always attentive to expiration tracking and recall management to remain in compliance. Inventory should be managed in such a way that clinical staff have visibility into expiration dates to properly rotate product out before it's too late. An alert system should also be established to respond to recalls in a timely manner.
Summary: Cost containment, patient safety and regulatory compliance are 3 significant areas of concern that hospitals face on an ongoing basis. To improve upon these areas, an astute review of current inventory practices must be conducted to determine that there is proper visibility and accuracy of on-hand inventory levels and usage patterns to make decisions regarding inventory optimization. Taking the time to review hospital protocol and procedures in managing the overwhelming number of products used in a busy specialty lab can make the difference in a patient's well being, as well as the hospital's bottom line.
Learn how a mid-west hospital addressed all three of these concerns by automating their inventory management processes. Download an ROI white paper.