Improving hospital pharmacy inventory management using data segmentation.

PURPOSE: This case study describes the development and empirical validation of an easy-to-implement practical framework for improving hospital pharmacy inventory management. SUMMARY: Research suggests various inventory optimization models, which can lead to cost reductions while maintaining adequate service levels; however, they are facing limited adoption in healthcare settings. The main barriers appear to be the high effort and complexity of implementation, the dependence on data that are not available or might not be in the right form, and the one-size-fits-all approach often followed without addressing healthcare sector-specific particularities. A research framework was developed by adapting relevant inventory models to the healthcare context using the concept of data segmentation on the basis of a three-dimensional classification of hospital pharmacy inventory items based on their relative importance, clinical criticality, and consumption pattern. Suitable replenishment policies were assigned to high-impact classes, and an integrated performance-measurement component assesses the framework's effectiveness. The suggested approach was implemented and empirically tested at the pharmacy of a large public hospital using longitudinal data. The results demonstrate substantial improvements with respect to all of the selected key performance indicators and translate into inventory cost savings due to reduced stockholding costs and better synchronization of inventories to demand. CONCLUSION: Use of standard software functionalities combined with targeted data segmentation efforts significantly improves hospital pharmacy inventory cost performance.

Hospital Supply Expenses: An Important Ingredient in Health Services Research.

The purpose of this article is to shed light on hospital supply expenses, which form the second largest expense category after payroll and hold more promise for improving cost-efficiency compared to payroll. However, limited research has rigorously scrutinized this cost category, and it is rarely given specific consideration across cost-focused studies in health services publications. After reviewing previously cited estimates, we examine and independently validate supply expense data (collected by the American Hospital Association) for over 3,500 U.S. hospitals. We find supply expenses to make up 15% of total hospital expenses, on average, but as high as 30% or 40% in hospitals with a high case-mix index, such as surgery-intensive hospitals. Future research can use supply expense data to better understand hospital strategies that aim to manage costs, such as systemization, physician-hospital arrangements, and value-based purchasing.

Case Study: Supply Chain Transformation in the UK National Health Service.

This case study provides evidence of the impact of the Scan4Safety program demonstrated in six National Health Service (NHS) Trusts, funded to achieve supply chain transformation to improve safety, quality and performance in the NHS in England. All 154 Trusts were mandated to adopt GS1 global standards for supply chain processes and Pan-European Public Procurement On-Line standards in 2014 to enable digital transactions across the NHS. The outcomes of this case reflect the early implementation of the program infrastructure in surgical theatre and cardiac programs. Outcomes include a 4:1 return on investment and projected savings of £1 billion pounds when scaled across the NHS.

Keeping costs down and revenue up.

Mike Hilditch, managing director of auctioneers, Hilditch Group, which has extensive experience in selling equipment on behalf of the NHS, advises, via a seven-step guide, on some of the key elements for estates and facilities teams to consider to ensure that site clearances both go to plan and reap maximum financial reward, including safeguarding potentially valuable 'kit' against opportunist thieves, and preventing confidential paperwork falling into the wrong hands.

[Challenges Analysis and Strategic Consideration on Medical Equipment Maintenance].

Expounding the status of the current domestic medical equipment maintenance management, and puting forward the strategic thinking of medical maintenance for the challenges of equipment maintenance management in the hospital. This discussion can be performed to control the maintenance costs of hospital effectively, increase the income and social benefits of the hospital.

Medical equipment libraries: implementation, experience and user satisfaction.

The hospital-wide pooling and sharing of certain types of medical equipment can lead to both significant improvements in patient safety and financial advantages when compared with a department or ward-level equipment ownership system. In September 2003, a Medical Equipment Loan Service (MELS) was established, focusing initially on infusion pumps. The aims and expected benefits included; improving availability of equipment for both patients and clinical users, managing and reducing clinical risk, reducing equipment diversity, improving equipment management and reducing the overall cost of equipment provision. A user survey was carried out in 2005 and repeated in 2011. The results showed wide and continued satisfaction with the service. The process and difficulties of establishing the service and its development to include additional types of equipment are described. The benefits of managing medical equipment which is in widespread general use, through a MELS as part of a Clinical Engineering Department, are presented.

Utilização do custeio baseado em atividades em centro de material e esterilização como ferramenta gerencial / Using activities-based costing in a sterile processing department as a management tool

O Centro de Materiais e Esterilização (CME) baseia-se nos custos que incidem nos processos desenvolvidos para seu gerenciamento e o custeio baseado em atividades (ABC) pode ser uma ferramenta adequada para auxiliar o gestor nas decisões e prática gerencial. O objetivo do estudo foi avaliar a aplicação do custeio ABC para uma prática gerencial baseada em evidências e seu apoio ao processo de tomada de decisão. Estudo de caso, realizado em CME de hospital de ensino, usando análise documental para aplicação do custeio ABC. O custo individual da esterilização dos artigos foi de R$ 6,05 (US$ 3,23) e desinfecção foi de R$ 3,03 (US$ 1,61). O custeio ABC é aplicável e destaca evidências que balizam a tomada de decisão na prática gerencial, garantindo a análise do processo produtivo e intervenções decisivas e impactantes na gestão de custos

The Center of Materials and Sterilization (CMS) is based on the cost related to the processes developed for its management and the activities-based costing (ABC) can be an adequate tool to help the manager in management decisions and practice. The aim of the study was to evaluate the application of ABC for an evidence-based management practice and its support for process of decision making. This is a case study, performed in a CMS of a teaching hospital, using documental analysis to apply the ABC. The individual cost to sterilize goods was R$ 6,05 (US$ 3,23) and to disinfect was R$ 3,03 (US$ 1,61). The ABC is applicable and highlights evidence supporting decision making in management practice, guaranteeing the analysis of the productivity process and the decisive and impacting interventions in the management of costs.

[The use of benchmarking to manage the healthcare supply chain: effects on purchasing cost and quality]. / Aplicación del benchmarking en la gestión de la cadena de aprovisionamiento sanitaria: efectos sobre el coste y la calidad de las compras.

OBJECTIVE: Healthcare supply expenses consume a large part of the financial resources allocated to public health. The aim of this study was to analyze the use of a benchmarking process in the management of hospital purchases, as well as its effect on product cost reduction and quality improvement. METHODS: Data were collected through a survey conducted in 29 primary healthcare districts from 2010 to 2011, and through a healthcare database on the prices, quality, delivery time and supplier characteristics of 5373 products. RESULTS: The use of benchmarking processes reduced or eliminated products with a low quality and high price. These processes increased the quality of products by 10.57% and reduced their purchase price by 28.97%. CONCLUSIONS: The use of benchmarking by healthcare centers can reduce expenditure and allow more efficient management of the healthcare supply chain. It also facilitated the acquisition of products at lower prices and higher quality.

Gerenciamento de recursos materiais com enfoque na queixa técnica / Management of material resources with a focus on technical complaints / Gerenciamiento de recursos materiales con enfoque en la queja técnica

Estudo descritivo cujo objetivo foi caracterizar o processo de notificação da queixa técnica de material de consumo em hospital de ensino público e integrante da Rede Hospital Sentinela da Agência Nacional de Vigilância Sanitária. Os dados obtidos dos Impressos de Notificações resultaram em 260 notificações analisadas, relativas ao período 2007 a 2009. Os resultados apontaram predominância de não conformidades no grupo de material médico-hospitalar (80,4%) e as queixas principais se referiram à estrutura dos produtos utilizados (79%). Do montante das notificações, 7,7% foram encaminhados ao Sistema Nacional de Notificações em Vigilância Sanitária. Os enfermeiros foram os profissionais que majoritariamente (81,2%) realizaram as notificações. Os achados desta investigação revelaram a relevância da implantação e uso de sistemas de registros sistemáticos de avaliações de materiais, enquanto subsídio para uma gestão eficiente no que concerne à maximização de recursos econômicos.

Descriptive study aimed to characterize the process of notification of the technical complaint of consumables in a public teaching hospital, a member of Sentinela Hospital Network of the National Health Surveillance Agency. The data obtained was from the printed notices that resulted in 260 notifications analyzed from 2007 to 2009. The results showed a predominance of non-conformities in the group of medical-hospital material (80.4%) and the main complaints referred to the structure of the products used (79%). Of the total amount of notifications, 7.7% were referred to the National System of Notifications in Sanitary Surveillance. The nurses were the professionals who mostly (81.2%) made the notifications. The findings of this research revealed the importance of implementing and using systems for making systematic records of material evaluations as a basis for efficient management regarding the maximization of economic resources.

Estudio descriptivo que objetivó caracterizar el proceso de notificación de queja técnica de material de consumo en hospital de enseñanza pública, miembro de la Red Hospitalaria Centinela de la Agencia Nacional de Vigilancia Sanitaria. Los datos obtenidos de los Impresos de Notificaciones totalizaron 260 notificaciones analizadas, relativas al período 2007 a 2009. Los resultados expresaron predominancia de inconformidad en el grupo de material médico-hospitalario (80,4%) y las quejas principales se refirieron a la estructura de los productos utilizados (79%). Del total de notificaciones, el 7,7% fue derivado al Sistema Nacional de Notificaciones en Vigilancia Sanitaria. Los enfermeros fueron quienes realizaron mayoritariamente las notificaciones (81,2%). Los hallazgos de esta investigaci ón revelaron la importancia de implantar y utilizar sistemas de registro informático de evaluaciones de materiales como respaldo de una gestión eficiente en lo referente a la optimización de recursos económicos

Tying supply chain costs to patient care.

In September 2014, the FDA will establish a unique device identification (UDI) system to aid hospitals in better tracking and managing medical devices and analyzing their effectiveness. When these identifiers become part of patient medical records, the UDI system will provide a much-needed link between supply cost and patient outcomes. Hospitals should invest in technology and processes that can enable them to trace supply usage patterns directly to patients and analyze how these usage patterns affect cost and quality.

Achieving strategic cost reduction in the OR.

Hospitals should be proactive insearching for ways to control operating room supply chain costs. A hospital can identify an overall supply cost savings goal by analyzing patient-encounter data for its 15 most costly procedures and identifying the dollar figure under which 25 percent of cases fall for each procedure. After establishing savings targets, the hospital can achieve its goals through a range of approaches.

Ensuring effective device management.

In an article that first appeared in the August 2013 issue of HEJ's sister magazine, The Clinical Services Journal, John Sandham IEng MIET MIHEEM, discusses the need to put in place effective healthcare technology management policies, and highlights some of the barriers, including lack of management expertise, and insufficient commitment, that are making achieving this goal more difficult and, in the process, may be contributing to hospitals and other healthcare facilities being unable to comply with regulatory standards in this important area.