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 24, 2010 @ 07:51 AM
The bill has been signed, yet the country is divided on the methods, outcome, and success of bringing affordable healthcare to all. So, what do providers and suppliers think? How will the reform affect their bottom line?
While the landmark legislation promises to bring healthcare to some 32 million currently uninsured, the heated question remains how much this benefit will cost the individual consumer and industry --notably pharmaceutical and medical suppliers. For providers, the reform potentially means more customers with the resources to pay for services rendered and supplies used. With reimbursements a troubling concern for many hospitals, the reform may alleviate some of the financial pressures for hospitals administering care to the uninsured. Yet, how much will caring for this influx of newly insured cost the provider? A potentially dramatic increase in customers requires more clinicians, more space, and more supplies. What are hospital administrators saying? How will clinicians be affected by the reform?
Meanwhile, healthcare suppliers have been quite vocal in their concerns, as it appears they may bear the brunt of the cost through increased taxes on drugs and devices. The supplier fear and concern is that this legislation may very well stifle innovation --as the imposed tax is likely to have devastating affects on smaller drug manufacturers and medical device suppliers--and potentially threaten patient safety and care. Do the suppliers see any good in this reform?
There is still so much to learn and understand about the impending legislation that most lay people are taking a wait and see attitude. Want to weigh in on the discussion? Share your views here.
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 Wed, Feb 17, 2010 @ 01:02 PM
Oftentimes, inventory management strategies are forgotten on the collegiate steps. However, the lack of visibility and control of inventory will surely get the MBA-types excited, but for the wrong reasons.
In a nutshell, inventory is money. Too much inventory and cash is tied up, affecting future purchases. Too little and you may be losing customers or paying a premium to rush orders. The absence of good inventory management practices could also lead to theft, damage, lost products, obsolescence and worse, a compromise to patient safety.
If you are experiencing any of the following, it may be time to rethink your inventory management strategy.
- Overstocks-too many products sitting on the shelf. If you don't have a method to understanding demand and usage, then you can easily be left paying for products that will never be used/reimbursed.
- Understocks/increased backorders-not enough product or product still in transit. If you don't have what you need, when you need it, then patient care levels may diminish.
- Product obsolescence-products exceeding their expiration life (or have been recalled) are still on the shelves. If there is no means to accurately track lot and serial #s of products, then inventory write-offs will increase and patient safety is compromised.
- Theft/Waste/Loss - the removal, authorized or not, of product from receivables inventory. If you don't have a way to monitor where product is stored, when it is used, and for whom, then charge capture rates decrease.
Preventing stock-outs without overstocking products requires a disciplined process and an information system that can dynamically manage this balance. Optimizing inventories can be accomplished with visibility and accuracy of information in the healthcare supply chain.
To learn how RFID can ensure the availability of the right products at the right time for the right person, read this case study.
Posted by Colleen Terry on Wed, Feb 10, 2010 @ 12:18 PM
RFID has gained significant traction in the healthcare market. Many publications are dedicated to delivering content about RFID, while others report regularly on the technology. By knowing the identity, location and conditions of assets, tools, inventory, people and more, organizations can optimize workflow and reduce operational costs. Bookmark these 4 sites to learn more about RFID in healthcare:
RFID Journal For eight years, RFID Journal has been the trusted source that potential users of the technology turn to for objective information. The Web site features thousands of free news articles, as well as opinion pieces, expert views, videos, white papers and more. RFID Journal hosts the RFID in Healthcare events in January and September, with its flagship event -RFID Journal Live--in April, having a special Healthcare track.
RFID Monthly RFID Monthly covers recent industry developments, including industry commentary and thought leadership articles as well as a summary of relevant news flow. Healthcare has been an increasingly important area for RFID adoption as more hospitals and providers consider investing in automatic identification technology for asset management, operating room inventory management and specimen tracking. RFID Monthly offers a quick and easy summary on the latest industry and healthcare news and comment.
Switchboard Media Is a community dedicated to providing educational content and news items to its visitors and subscribers. The website offers a section dedicated to healthcare, along with ROI success stories. You can also ask the expert to have your questions answered.
RFID in Healthcare Consortium The RFID in Healthcare Consortium (www.rfidinhealthcare.org) is organized under the auspices of The RFID Educational Foundation, a non-profit charitable educational institution. The vision of the RFID Healthcare Consortium is to globally advocate the safe and effective use of wireless-based technologies in healthcare delivery.
The following sites offer an in-depth look at the technology, how it works, standards, and more.
Aim Global
MIT Auto-ID Center
EPC Global
To learn more about how RFID is used in hospitals, watch these videos.
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, Jan 06, 2010 @ 10:12 AM
1. Diligently track expiration dates
Specialty departments are seeing an increased number of implantable products with limited shelf lives. With the trend towards medicated implantables, the need to track expiration dates is ever pressing. When items are received, make a note of their expiration dates and store items in such a way that you can easily track and monitor dates. Be diligent about how often expiration dates are checked and rotate products with shorter life expectancies so they get used first.
2. Logically store items so you know where to find them in case of recall
Although we like to think the likelihood of a recall is slim, it is a reality that needs to be prepared for. While arranging items in a logical order may sound obvious, it is no trivial task when you consider how your logic may differ from the physician scrubbing in for his next procedure, or the Rad tech prepping the room next door. With input and buy-in from others, organize and store the array of products in a manner that will allow you and others to easily locate a specific item by lot or serial number in case of recall.
3. Faithfully replenish items when used
Just as you would replace the milk in your refrigerator, be acutely aware of products being used in your department and generate timely replenishment orders. Making sure the right products are available at the right time is at the core of patient safety.
4. Continuously monitor product usage trends
While the billing department will tell you it's important to track products being used for reimbursement purposes, administrator and savvy inventory clerks will say that same information is needed to analyze product usage. Identifying trends and understanding usage patterns enables departments to satisfy physician preferences, establish par levels, smooth ordering patterns and monitor outcomes.
5. Seamlessly integrate existing hospital systems
The Holy Grail for administrators is to have a seamless integration between all hospital information systems from billing to ordering to recall management. Capturing information at the source and sharing downstream data yields patient safety improvements, cost containment and regulatory compliance.
At first glance, these tips may seem elementary; however, departments are continuously challenged with how to achieve inventory visibility. Some specialty departments are handling inventory management with manual tools, making it virtually impossible to be aware of every expiration date on every product. Many departments have done the financial analysis to justify automating these processes. Not only have these hospitals seen a reduction in costs, the patient safety and clinical workflow improvements are exemplary.
To learn how one nurse was able to turn her department around by automating inventory management tasks, read her article in the December issue of Cath Lab Digest.
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.