MDCI Whitepaper Series. Automated Pharmacy Systems Set the Stage For More Efficient Patient Care

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Charla Bishop
6 years ago
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1 MDCI Whitepaper Series Automated Pharmacy Systems Set the Stage For More Efficient Patient Care

Whitepaper Series Implementation of an automated storage and retrieval system, specifically integrated inventory management and control software with vertical carousel technology, offers numerous

2 Whitepaper Series Implementation of an automated storage and retrieval system, specifically integrated inventory management and control software with vertical carousel technology, offers numerous advantages to pharmacy operations. Healthcare systems and hospitals with central pharmacies experience improved workflow efficiency, optimal inventory management, and a reduction in the potential for human errors. According to Carla Corkern, Chief Executive Officer of Talyst, a leading pharmacy automation company, Automation provides a new level of inventory control for pharmacies, and positions them for bedside bar code scanning. With uncertainty surrounding the new healthcare legislation and its compensation for providers, as well as shrinking capital budgets, justifying the implementation costs of an automated system is the critical first step in realizing improvements in pharmacy operations and patient care. In pharmacy automation applications, automated storage and retrieval systems drive efficient processes where hardware and software work together in a logical and intuitive manner to provide bar code security at the point of care. Both hardware and software have individual benefits that together total more than the sum of the parts, so it is important to understand what each brings to the application.

Making Space More Productive Vertical storage and retrieval systems, such as the Sapient Avenger Vertical Carousel, are enclosed storage devices designed with rotating shelves that move up or down in

3 Making Space More Productive Vertical storage and retrieval systems, such as the Sapient Avenger Vertical Carousel, are enclosed storage devices designed with rotating shelves that move up or down in response to operator commands. Stored items are delivered to an ergonomically positioned window for easy removal. Vertical carousels take advantage of unused overhead space to recover 60% to 85% of the floor space typically required by shelving and drawer systems, and often decrease total pharmacy storage space by 30% to 50%. The floor space recovered with the installation of vertical storage and retrieval systems can often be reallocated from cost-associated functions of inventory to value-increasing operations. Improved space utilization can also extend the useful life of existing facilities, eliminating the need for expensive square footage expansion to meet growth requirements or to provide space for drug compounding or other compliant operations. Because of their vertical design, these systems can be used to link multiple operations located on different floors, further reducing the amount of space required for storage and retrieval activities while improving workflow.

4 Improving Staff Efficiency Conventional static storage systems like shelving require technicians to spend up to 70% of their time traveling aisles searching for items. Vertical automated storage and retrieval systems deliver items automatically to the operator, eliminating wasted walk and search time, reducing time-on-task and the number of staff necessary to fill orders. The access area of vertical systems is ergonomically designed to present stored items at an ideal height for picking, usually about waist high. Typically, a technician s walk and search time is reversed from that of conventional systems to 70% picking and only 30% dwell time. In many applications, this reversal of walk and search time can reduce labor requirements by up to 66%. Even with a smaller workforce, productivity can increase by more than 2.5 times, on average, in typical pharmacy applications. Vertical carousels also offer increased picking speed and accuracy when compared with rack and shelving systems. With the addition of position indicators, information displays and bar code scanning devices, stocking and picking accuracy can improve to 99.99% while throughput can improve up to 500%. Redundant or nonessential handling can also be reduced with vertical systems. When throughput improves, the time saved results in less operating cost and improved patient care. Since vertical systems are totally enclosed and lockable, products are protected from external hazards and potential damage or pilfering. Consequently, inventories can often be reduced. Access to vertical storage and retrieval systems can be controlled and tracked making it easy to keep products secure and personnel accountable.

5 Better Inventory Control, More Cost Effective Patient Care An integrated system with dedicated pharmacy inventory management and control software, such as AutoPharm3 from Talyst, provides pharmacies with the ability to easily store, track and dispense medications. It also enables barcodedriven pharmacist checks for improved patient safety and easier, more accurate recordkeeping and accountability. These systems can be integrated with ERP Hospital Information System (HIS) or Pharmacy Information System (PhIS) software to provide precise inventory management. More detailed and precise inventory management adds efficiency and security to pharmaceutical dispensing operations by: Automatically tracking and documenting storage and retrieval activities. Comparing inventory stock levels to par levels to facilitate accurate and timely restocks. Automating put-away and receiving functions. Recognizing priority orders with movement to the head of the line. Automation of wholesale ordering to eliminate the need to walk the shelves. Improving response time and accuracy for STAT and first dose orders. Recalling medications and tracking lot numbers and/or expiration dates. Reducing the time required for ADU replenishment and cart fills.

6 Realizing Rapid ROI One major benefit of this approach to inventory management is that it helps better manage drug shortages, Ms. Corkern said. In 2010, many hospitals and health care organizations reported that they did not have enough of certain medications on hand, including a number of generic varieties, to meet the needs of patients with severe health issues. In some cases, treatments were delayed. Annually, drug shortages cost hospitals at least $200 million due to purchasing more expensive substitutes, she said. Using AutoPharm3 software, hospital pharmacies can set up a perpetual inventory tracking system that keeps technicians informed in real time of inventory status, not just in the main pharmacy, but in remote stock locations as well. Tighter inventory control allows pharmacists to better project medication demand and be better prepared for drug shortages. Another benefit is the overall reduction in inventory, resulting in a reduction of carrying costs. At Eastern Maine Medical Center, a 411-bed facility in Bangor, Maine, the installation of vertical carousels and inventory management and control software reduced the costs of inventory, expired medications and dispensing errors to such a degree that the system was essentially paid for when it went on line, said Ms. Corkern. This one-time inventory cost reduction also helped University of Virginia Health Systems justify the cost of the automated system almost immediately. Ms. Corkern said, This operation was able to reduce staff hours dedicated to ordering, picking and dispensing tasks.

Return On Investment When selecting a pharmacy automation system, reliability is an important consideration in balancing cost savings with installation costs.

7 Return On Investment When selecting a pharmacy automation system, reliability is an important consideration in balancing cost savings with installation costs. Systems available from Talyst offer 24/7 real time monitoring of critical system thresholds, actual carousel usage, picks, run time, and energy consumption levels in order to detect variances and anomalies which could lead to performance issues or failure. The moment anything out of the ordinary is detected, a message is sent to the local technician and the central service monitoring group for immediate response. Talyst also offers a 10-year warranty on the system. Pharmacy automation systems can have a significant impact on medication storage and dispensing operations, and in the process can be the foundation for more efficient patient care. In today s healthcare market, more efficient care can go a long way to boost bottom line performance.

8 About MDCI MDCI is a leading provider of automated storage and retrieval systems which reduce requirements for labor, floor space and inventory, while dramatically increasing productivity and operational efficiencies oftentimes with a 9 to 18 month Return on Investment (ROI). Industries served include: Healthcare Material Handling Pharmacy Postal Automation Manufacturing Distribution Warehousing Our technologies include the Vertical Carousel, the Mini-Avenger, Xpress Pix Software, the Sapient Hornet and C/AS-RS. For more information, call or visit our website at

TALYST: Enterprise Wide Pharmacy Solutions

TALYST: Enterprise Wide Pharmacy Solutions TALYST: Engineering the Safer and More Cost Effective Pharmacy About Us Talyst is the market leader in central pharmacy automation and your expert partner in