Scott Hardin RT-R, CV, RCIS, FSICP Director of Cardiovascular Operation. Results from WaveMark May 1 August 1, 2009
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1 1
2 Scott Hardin RT-R, CV, RCIS, FSICP Director of Cardiovascular Operation Results from WaveMark May 1 August 1,
3 Disclaimer I have no financial ties to WaveMark 3
4 AGENDA How RFID Works in Cardiac Catheterization Department Hospital Results from WaveMark RFID Future Plans Discussion 4
5 5
6 Interface 6
7 Benefits from WaveMark RFID Hard dollars Reduced inventory on hand Reduced loss/shrinkage Improved bulk buy opportunity Improved charge capture Patient Safety Product availability Expired items Capturing serial and lot numbers Streamlined Processes For clinicians For inventory control 7
8 What do we get from WaveMark? Management reports: Bulk Buy Optimizer Right size inventory Accountability reports Clinicians: Product availability Patient Safety alerts Ease of use Inventory reports: Accurate on hand levels Control of requisitions Expiration tracking Room level supply visibility 8
9 Unexpected win for WaveMark After the interface was implemented WaveMark let s us know a bill dropped into Meditech B/AR. WaveMark caught in August $7, of products that did not go through Annualized $90,288 9
10 Reduced cash tied up in inventory (items in WaveMark only) 5/1/09 8/1/09 Difference Cath Lab Total $1,554,579 $1,416,095 ($138,484) Cath Lab Owned $37,227 $31,657 ($5,570) 5/1/09 8/31/09 Difference EP Lab Total $639,115 $325,307 ($313,808) EP Lab Owned Same Same Same Total (owned only) ($319,378) During this same period, the actual number of products tracked by WaveMark went up in the Cath Lab by 300 items. In the EP Lab on hand product went down by 22%. 82% department inventory value is in WaveMark 10
11 Procedure Volume has been going up 11
12 Inventory carrying cost is going down 12
13 Reduced Loss and Shrinkage WaveMark reports Missing items. By tracking down every item within 24 hours of its disappearance the Cath and EP Labs have accounted for every item that has entered the Cath Lab. Previously, these missing items would not have been discovered until a physical count and reconciliation too late to find and account for the item. Example 1: Missing item at 2pm from Peripheral Lab. Track it to the sales rep who was in that day; he took it to another department. He replace the item. Example 2: Missing item at 1am. No Cath Lab cases at the time. Find out who entered the lab with their badge ID. Found out that the OR took the product. Example 3: Two EP catheters $1200 each was used on a patient and was not recorded. Wavemark system flagged that they were missing and we were able to track and add to the patient s records and billing in the same day. 13
14 How WaveMark identifies Missing Here is an item that was taken off the shelf at 4:50 AM now it can be caught and entered into the clinical record and Meditech B/AR 14
15 Bulk Buy Savings By tracking each individual item, WaveMark reports how much cash is still tied up on the shelves. We can also determine it is time to do another bulk buy so as not to pay retail on those items. Bulk Buy purchase decisions are facilitated by using the WaveMark Bulk Buy Optimizer to ensure only high use products are included. Most hospitals can benefit 5 15% savings on average utilizing bulk buys; BUT must be utilized in 90 days for the savings to be optimal 15
16 Sample Bulk Buy Savings # Bulk Buys # Bulk Buys Projected Sept - Aug Jan- Apr09 Apr -Aug Medtronic Boston Scientific St. Jude Totals Projected: By tracking each individual item, WaveMark reports how much cash is still tied up on the shelves. We can also determine it is time to do another bulk buy so as not to pay retail on those items. Bulk Buy purchase decisions are facilitated by using the WaveMark Bulk Buy Optimizer to ensure only high use products are included. 16
17 The Bulk Buy Optimizer Pick the products to include in the Bulk Buy and the amount to purchase and the tool produces the shopping list 17
18 Challenges in Capturing Charges Products with out charge codes Devices used and not charged for Products taken to other departments 18
19 Supplies used in a case attach to the patient bill in B/AR 19
20 Patient Safety Product Availability Clinicians have the right product, right place, right time to meet patient needs because par levels match usage Expiration Alerts indicate expired product on the shelf and at point of care and Alerts also show products about to expire to ensure that those are used first Recalls Alerts indicate products with lot/serial numbers on recall and can be quickly removed from their exact location 20
21 Streamlined Processes For clinicians Fewer trips for staff to make to other locations looking for a product; that way the staff is focused on patient care and not looking for supplies. The staff prior to Wavemark were making multiple trips daily. Now it is rare they are making these trips. Ease and accuracy for entry into clinical documentation system just a wave of the box sends in product barcode and serial/lot # 21
22 Streamlined Processes For inventory management Ordering based against accurate real-time count of what is on hand and what is on order against par level Par levels can be adjusted using the WaveMark tool to match usage patterns at the line item level Physical counts every 20 minutes Rooms can be restocked using an automated restocking report even 2 3 times per day Products are linked to the PO they came in on Consignment par compared with on-hand amounts for real-time reconciliation reporting Expiration management is at a click of the mouse 22
23 The Bag The Bag Past practice: Throw all product packaging in the bag Bring bags to inventory room Barcode scan every item into Lawson Lawson replenishes against par level Supply is sent into Meditech B/AR 23
24 Getting rid of the bag First Quarter 2010, include non-tagged items in WaveMark system New Process Barcode scan patient barcode into XPOS Wave tagged product at XPOS or barcode scan non-tagged product at XPOS THROW SUPPLY PACKAGING OUT Billable supplies attach to bill in Meditech B/AR 24
25 WaveMark RFID Is A Tool There are a lot of opportunities with this technology to improve accuracy and timing of supplies both for the vendors and the hospitals. It is impossible to manage an inventory this large without the tools to do so. 25
26 Future Large healthcare supply companies are looking at partnering for product supply chain management Utilize barcode reader for the remaining nontagged inventory and at point of use Eliminate the bag Consider expansion to other departments for possible creation of virtual storeroom 26
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