Healthcare Facilities Use RFID To Enhance Inventory Control and Asset Visibility

Transcription

1 Healthcare Facilities Use RFID To Enhance Inventory Control and Asset Visibility July 12, 2011 PAGE 1

2 AGENDA RFID OVERVIEW CASE STUDIES St. Luke s Health System, Kansas City, MO Resurrection Health Care, Chicago, IL QUESTIONS AND ANSWERS PAGE 2

3 HOSPITAL ASSET FACTOIDS 10% to 20% of all hospital mobile assets are lost or stolen. 1 The average hospital over spares by approximately 30%. 2 On average, 40% of a hospital s pharmacy drug spend is invested in rush order, non-contract items. 3 8/13/2009 A Calgary brain-injury patient has been found after being lost in the hospital for 3 days 4 5/7/2008 A man purchased a used server on E-Bay that contained thousands of medical records from a large university hospital 5 1 AMR Research 2 US News & World Report 3 Managed Healthcare Executive 4 National Post 5 Philadelphia Inquirer

4 APPLICATION: RFID WHAT IS IT? Radio Frequency IDentification A technology that identifies objects using low-power radio frequency technology RFID provides a wireless extension of the network to physical objects Two Primary Classifications Active battery powered tags Passive tags powered by the reader

5 ADAPTABLE RFID TAGS & TECHNOLOGIES Track / Manage Assets, Personnel and Patients / Universal Location Based Services There is no One Size Fits All - WiFi, Active / Passive Tags Bar Codes Multiple Frequencies Mobile Devices (Handhelds)

6 PASSIVE RFID vs. ACTIVE RTLS Triangulation requires doubling (at least) of WiFi access points Batteries in tags die over time and must be located and replaced Size and cost ($25-$50) makes them impractical for all assets Do you really need real time or do you just want to know where an item is? Active RTLS systems must be rolled out in entirety; Passive readers can be rolled out gradually over time

7 HEALTHCARE VISIBILITY APPLICATIONS Inventory Management Asset Management Equipment Maintenance Patient & Staff Safety Workflow & Resource Management Improve Patient Care Reduce Costs Increase Safety

8 ABOUT OUR PRESENTERS David Strelow Director, CV Laboratory Services, Saint Luke s Health System Randal York President, Cenbion Medical PAGE 8

9 SAINT LUKE S HEALTH SYSTEM Has been bringing medical advances from the first kidney dialysis to the first heart hospital to Kansas City and the world for more than 125 years Earns worldwide recognition for excellence including the Malcolm Baldrige National Quality Award 8 Hospitals serving Kansas City, Western Missouri and Eastern Kansas 1,356 Licensed Beds 43,196 Admissions in ,917 Outpatient visits in th Heart Transplant in June 2010 top 25 Most Wired Hospital

10 BUSINESS CHALLENGE: SUPPLY CHAIN GAP You may be able to account for everything you used, but, can you account for everything you bought? Receiving Hospital Materials Management System Central Supply Pharmacy $$$$ CV Labs $$$$ Patient Transactions $ $ $ Surgery Radiology $$$ $ $ $$$ Nursing Units

11 BUSINESS CHALLENGE Lost Charges 5,000 7,000 patient supply charge transactions per month Cost per transaction ranging from $10 - $25, staff focused on patients, but also responsible for transactions CV Labs $$$$ Patient Transactions???

12 BUSINESS CHALLENGE Supply Loss And Waste Not Scanned to Patient Removed by Sales Rep Loss Transferred to Another Hospital Lost Supplies Purchases Patient Transactions Expired Items Defectiv e Unintended Use Waste

13 BUSINESS CHALLENGE Hidden and Stolen Supplies If inventories are unreliable, staff hide supplies June 21, Montreal Gazette (National; International) FBI 'seeing a trend' in surgical-instrument theft... for sale on the black market in eastern Europe and Africa... worth tens of thousands of dollars

14 BUSINESS CHALLENGE: IT S NOT IF YOU HAVE A GAP. $$$$$$$ How Big is Your Gap? $$$$$$ Purchased Items Used Items

15 MAGNITUDE OF CHALLENGE We can t measure missing transactions We know there is loss, but we don t know the magnitude of loss Each 1/10 of 1% loss represents (99.9% Accurate) $200,000 in charges which, at 25% realization results in $50,000 in lost revenue annually Do the math Lost cash 99.8% Accurate = $100, % Accurate = $500,000

16 SOLUTION: IS THERE A ROLE FOR RFID? 2006 Executive sponsored consultant for RFID in Healthcare Applications and Uses Patient Tracking Medication Authentication and Control Asset Management Active RFID High cost, low return Unsatisfactory ROI Same executive petitioned to sponsor passive RFID inventory management solution Relatively low start-up beta phase cost Rapid ROI Inventory Management RFID solution receives Executive office sponsorship for beta implementation phase

17 SOLUTION: CV LAB SUPPLY CHAIN PROCESS REVIEW Mid America Heart Institute CV Laboratory Supply Chain Management Room 1 Room 2 Room 3 Room N Issue Supplies Patient Billable (CDM) Kit / Pick List Expired Products Credit Return Investigational Devices Unintended Use Procedure Log and ACC-NCDR Charge Mgmt Physical Distribution Doe, John XXX-AB-1234 CV Lab Procedure Log Receiving Supplier/ Manufacturer Materials Mgmt & Contracting Inventory Mgmt

18 SOLUTION: CENBION SUPPLY CHAIN SOLUTION (2006) Mid America Heart Institute CV Laboratory Supply Chain Management Room 1 Room 2 Room 3 Room N Issue Supplies Patient Billable (CDM) Kit / Pick List Expired Products Credit Return Investigational Devices Unintended Use Charge Mgmt Physical Distribution Cenbion Medical Inventory Management System Receiving Inventory Mgmt

19 SOLUTION: CENBION SUPPLY CHAIN SOLUTION (2006) Mid America Heart Institute CV Laboratory Supply Chain Management Room 1 Room 2 Room 3 Room N Issue Supplies Patient Billable (CDM) Kit / Pick List Expired Products Credit Return Investigational Devices Unintended Use Charge Mgmt Physical Distribution Cenbion Medical Inventory Management System Receiving Inventory Mgmt

20 SOLUTION: SUPPLY CHAIN PROCESS REVIEW Mid America Heart Institute CV Laboratory Supply Chain Management Room 1 Patient Billable (CDM) Room 2 Room 3 Room N RFID Issue Supplies Kit / Pick List Expired Products Credit Return Investigational Devices Unintended Use RFID RFID Procedure Log and ACC-NCDR Charge Mgmt Physical Distribution Doe, John XXX-AB-1234 CV Lab Procedure Log Receiving RFID Supplier/ Manufacturer Materials Mgmt & Contracting Inventory Mgmt

21 OUR PROCESS 2006 Vendor search & RFPs Tech evaluation team organized Evaluation matrix developed Rank each vendor from 1-3 with 3 as highest rank and 1 as lowest ranking Criteria Weight Vendor 1 Vendor 2 Vendor 3 A Functionality 3 B Implementation Timeline 2 C RFID Technology 3 D Cost 3 E Integration SW/HW 2 F Risk 2 G Portability of Solution Long Term 2 H Added Features 1 Three vendors, two viable solutions one HF, one UHF

22 SOLUTION: ACTIVE VS. PASSIVE ACTIVE TAGS Tag size prohibitive Tag Cost High Batteries in every tag Difficult to affix to package More difficult to commission tag PASSIVE TAGS Simple label style tag easily affixes to any package Tag cost below $0.20 Each tag commissioned as printed Hundreds of tags commissioned and applied each day

23 OUR SOLUTION: PASSIVE UHF RFID Main Storeroom RFID Tagged Packages Entry/Exit Hallway Package Disposal (Trash) CV Lab Operating Room

24 CENBION MEDICAL RFID SOLUTION RFID Assessment Strategy Workshop Pilot Execution Cenbion RFID System Assessment ROI Assessment Solution Design Site Analysis Hardware Selection Tag Selection Software Integration

25 1 Up 1 1 SOLUTION DESIGN: FINDING THE RIGHT TECHNOLOGY Scanners RFID Readers and Antennas RFID Printers RFID Tags Facility Infrastructure and Portals Software Reader 3 1 Reader 6 4 Reader 1 Inventory Stock Room Inventory Stock Room 2 Equipment Room CV Lab 3 Reader 7 Control Area Equipment CV Lab 2 CV Lab 1 Control Area Room Reader 4 Reader 5 Reader Entry / Exit Reader Trash Trash Collection Reader 12 Entry / Exit 2 Reader Entry / Exit Reader 9 Reader 10 Reader 13 2 CV Lab 5 Equipment Room CV Lab 6 CV Lab 7 Equipment Room CV Lab 8 Offices

26 SOLUTION DESIGN: SOFTWARE? Administration Name and Address User User List Creating a New User PC Authority Scanner Authority Vendor Authority Unlock Order User Note Labels Purge Tasks Case Management Procedure Information Product Information Printing Order Management Order Requisition Wizard /Export Closing Historical Access Deleting Orders Product Check in On Hand Adjustment Physical Inventories Analysis Analysis Customization Product Usage Annualized Physician Comparison of Cost by Procedure Vendor Comparison by Procedure Physician Average Usage by Procedure Physician Preference Product by Category and Vendor Case Overview Order Overview Product Overview No Charge by Vendor or Physical Inventory On Hand Quantity Inventory Planner Product Adjustment Custom Reports Report Data Export Import/Export Import Type File Type Data Field Mapping Export Type Export Filters Export Fields Export File Type Integration McKesson PeopleSoft Lawson Mac Lab Maintenance Physician Patient Procedure Maintenance Product Category Maintenance Vendor Maintenance Vendor License Numbers Vendor Merge Product Maintenance - Product List Window - New Products - Unknown Products - Update - Product Removal - Product Merge Billing Code Maintenance No Charge Code Maintenance Unit of Measure Maintenance Site Maintenance Bar Codes RFID Tracking Patients Track Product Location Physicians Case Reconciliation Procedures Provide Security Product Product by Procedure Product by Procedure / Physician

27 BENEFITS OF PASSIVE RFID Capturing ALL charges and supplies Tracking lost supplies Tracking supplies leaving the department Managing & tracking large bulk orders Finding specialty & hidden supplies Expiration tracking & date management

28 BENEFITS AND RETURN ON INVESTMENT Inventory reduction from a 5-10 day supply to a 2-3 day supply (that s a value drop from $3.2 million in inventory to $2.7 million) We recently checked in a $900,000 order of pace makers and defibrillators. By buying in bulk, we saved 12% or $127,000 on that order alone We found a lost pacemaker Will have charge capture results at year s end

29 ABOUT OUR PRESENTERS James Burton Director Biomedical Engineering Services, Resurrection Health Care Harold Clampitt CEO & Founder, American RFID Solutions

30 RESURRECTION HEALTH SYSTEM Leading Catholic Hospital located in Chicago, Illinois Nationally ranked for quality healthcare Awarded 5-star ratings by HealthGrades with dozens of distinguished hospital awards, Excellence Awards and 5- star ratings placing us among the top hospitals in the nation 7 hospitals (Acute ) 8 sub-acute facilities 57 ambulatory care locations Total beds 3,812

31 SITUATION Field Engineer Accountability Little technician accountability for quality and productivity of individual performance (involves >150 field engineers and more than fifty vendors) Missing/Hidden Equipment Lengthy cycle search times to find equipment No forecast for equipment return to service Safety Concerns Missed preventative maintenance routines per OEM guidelines Certain equipment did not meet quality standards for usage Expensive labor intensive process to manage preventative maintenance routines activity for Risk Category 1 * * Risk Category 1 is defined when vendor equipment, when used on a patient fails, the patient life may be compromised.

32 DISCOVERY PROCESS Resurrection Steering Committee established Three year process Top Outcome: Control costs, manage assets and improve quality Evaluation of vendor options Active vs. Passive RFID American RFID and Motorola Consultative approach Built on pre-existing platforms to lower risk and roll-out delays

33 SOLUTION OVERVIEW Bed Anesthesia Machine IV Pump People, Products, Paper, Procedures Example: Hill-Rom PM routines are displayed on the Motorola hand held reader above, etc. RFID Tag Fixed Imaging RFID Reader Fluoroscopy Laptop / Desktop

34 AMERICAN RFID SOLUTIONS Exception reports for ED/ICU/OR; Cardio/RAD, In/Out Patient; LAB/Pharmacy; & Age Based VISIBILITY/DASHBOARDS for cost control and decision making for superior patient care & safety RTLS (Real Time Location System) via Passive RFID for better asset resource management

35 FUTURE VISION Leverage Initial Investment Other equipment families (step & repeat) Vendor management for Imaging Consumable inventory Focus Six Sigma & Lean efforts to have the biggest benefit Improve Hospital Financial Margin Reduce cost of contracted equipment maintenance Increase Throughput & Accuracy of Work Flow

36 EXPECTED RESULTS Real-time access to workflow categories, technical productivity and work order Paperless asset management Automates corrective and preventative maintenance tasks RFID is enabling tool for tracking preventative maintenance activity Eliminates missed PM s Reduces litigation risk caused by improper frequency and or scope of work Organizes routine calibration activities

37 CONTACT INFORMATION Cenbion Medical Randal York, President American RFID Solutions Harold Clampitt, CEO & Founder Dan Galarde, Chief Solutions Architect Resurrection Health System Jim Burton, Director Biomedical Engineering Services Motorola

38 THANK YOU QUESTIONS