In this article, TIM GARCIA, chief executive of Apptricity, explores how a lack of effective asset management is threatening the efficiency of healthcare organisations across the UK
Recent reforms have placed the microscope on medical costs, from human resources to every supply riding on a nurse’s cart. There’s only one problem: Many healthcare leaders don’t have nearly the cost visibility that a microscope would provide.
Tighter control of assets could greatly benefit those organisational leaders working to squeeze every last penny. The healthcare supply chain, to put a name on it, includes everything from medication to medical equipment, from heart stents to portable X-ray units.
These assets are estimated to represent 40-50% of operating costs in a hospital or healthcare system. A couple of years ago, a study of more than 10 million hospital discharges found that supplies and devices were the biggest contributor to rising hospital bills.
Imagine the potential upside if organisations had command visibility of those assets.
Overstocking, understocking and asset loss
A lack of adequate asset control and visibility into the status of supplies and equipment causes all manner of problems, including under or overstocking of supplies, losses due to theft and, in the worst cases, unavailability of life-saving equipment during a crisis
A lack of adequate asset control and visibility into the status of supplies and equipment causes all manner of problems, including under or overstocking of supplies, losses due to theft and, in the worst cases, unavailability of life-saving equipment during a crisis.
For these reasons, it’s important that health care organisations use an asset management system powered by RFID, barcode scanning, or other means of tracking, to improve business processes and protect patient health. The benefits of doing so fall into four general categories:
Minimising asset losses Most healthcare facilities have equipment worth many thousands of pounds, and much of it can be easily accessed, sometimes by people who aren’t authorised. The same goes for carts loaded with medication or other supplies, and even items such as linens. Asset management makes it difficult to access supplies under false pretences and can even alert you when equipment is taken off premises. Proper tracking of equipment also eliminates the problem of wandering machines that can’t be located. Usually, hospitals respond by ordering a second machine – a totally preventable expenditure in most cases.
More-efficient supply operations Consider how many valuable assets are on your hospital grounds. The number is likely in the millions. Do you have any idea where it all resides at this moment, or which medications have gone out of date, or which supplies are running short? Probably not. Asset management software can help co-ordinate the entire process of bringing inventory into a healthcare facility’s central supply department, ensuring important items don’t go out of stock while preventing duplicate orders. When every dollar counts, carrying too much stock is almost as bad as running out.
When budget time comes, you’ll be surprised how much has been saved by simply keeping better track of assets
Better maintenance at lower costs Asset tracking systems automate the process of ensuring proper maintenance for sensitive medical equipment. The ability to provide maintenance with a clearly-delineated schedule of services also makes it easier to negotiate discounted pricing. That efficiency might also allow you to run a leaner maintenance operation.
Improved patient outcomes A lot of focus is placed on costs, but this is the biggie. Patient health is your most important goal, and you want to ensure that doctors, nurses and other staff members can find their equipment and supplies when they need them. This increases productivity for busy employees and minimises the chance of patients experiencing prolonged discomfort or excessive waits for services due to missing equipment or supplies that ran short.
With automated asset management, hospital staff will always know the status of equipment and supplies and exactly where to find them. Instead of spending a chunk of their shift hunting for that missing machine, they can stay busy on the all-important task of helping patients heal.
And, when budget time comes, you’ll be surprised how much has been saved by simply keeping better track of assets.
