Hospital Materials Management Inventory by bfu21080


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									 $7.00                                                                 November 2008 • Vol. 32 No. 11

People, Places, Processes & Products that Influence the Supply Chain   

           inventory storage
                    Processes, products integrate
                     to drive information access

                 Hitting the brakes on high shipping costs
             Endoscope Care Guide helps surgical business
                    Suite rewards for select OR managers
                          Hand hygiene’s dirty little secret
       Patewood Memorial Hospital, Greenville, SC

               THE PROBLEM                             WHAT WORKS                                    Reprinted from November 2008
       Existing methods for tracking surgical and OR
      supplies were inadequate and cumbersome for
        efficient charge capture, inventory manage-    Automated inventory management
            ment and cost-per-case management

              THE SOLUTION
            Fully automated OptiFlexSS using
             a combination of open shelves
                                                       OR increases workflow
                  and closed architecture

                THE VENDOR
                                                       efficiency, charge capture
            Omnicell Inc., Mountain View, CA

             atewood Memorial Hospital, part           struments and supplies for the next day’s   der Patewood Memorial’s manual sys-
             of the Greenville Hospital System         procedures. This task of ‘picking cases’    tem, such real-time case management
             University Medical Center (GHS),          was relegated to the surgical staff.        was non-existent.
      opened in June 2007 on a medical cam-              Personnel’s valuable time was not the
      pus a few miles east of downtown                 only resource experiencing sub-par effi-    Automating OR supply
      Greenville, SC. With elective inpatient          ciency because of the manual inventory      “It is important when installing an au-
      surgeries taking place in four universal         system. “Inventory either sat idly on       tomated OR supply system of this com-
      digital operating rooms, Patewood Me-            shelves or wasn’t readily available as a    plexity and capability that you have the
      morial campus president Scott Jones              result of inconsistent replenishing pro-    support of hospital leadership,” said
      knew that a standard OR information              cesses,” Hibbert said.                      John Mateka, GHS’ executive director of
      system would be insufficient. Previous             Omnicell systems for automated sup-       material services. “Scott and Geoff pro-
      experience had taught Jones that manual          ply management were already in place,       vided the vision and rallied support of
      procedures for tracking surgical suite           but Jones recognized the need to auto-      the materials management staff to imple-
      supplies were cumbersome, time con-              mate and better track inventory and sup-    ment OptiFlex SS. Materials manage-
      suming and often yielded inaccurate data         ply usage in the OR. The hospital de-       ment staff immediately realized the ben-
      for tracking costs per case.                     cided to add the Omnicell OptiFlex SS       efits and quickly got on board.”
        “We have a state-of-the-art facility with      system which would give them that op-         Patewood Memorial is the first hospi-
      72 patient beds, as well as a surgical suite     tion. The OptiFlex SS is a complete phy-    tal in the five-campus GHS system to use
      that includes four universal digital oper-       sician preference card and perpetual in-    the system. OR supplies that weren’t
      ating rooms, eight pre-op beds and 14            ventory management system for supply        previously being tracked by materials
      post-op beds,” said Jones. “We’ve also de-       management requirements of the surgi-       management at Patewood Memorial are
      signed the structure to accommodate the          cal services department. The automated      now all managed through OptiFlex SS.
      addition of four more operating rooms,           system allows for instantaneous report-     This provides the hospital with a true
      four additional pre- or post-op beds and         ing on physicians’ detailed per-case sup-   closed-loop process to help accurately
      up to 36 inpatient beds. To maximize             ply cost data through real-time usage       manage inventory and usage.
      workflow efficiency and allow for future         tracking using electronic preference,         “In the beginning, there is no doubt
      growth, we knew we needed an auto-               scanning of supplies and a continuously     that the ability to accurately track costs
      mated perpetual inventory management             updated electronic preference card. Un-     per case was a huge driver,” said
      system that would increase productivity
      for both materials management and staff,
      plus decrease inventory carrying costs.”

      Automation improves
      Geoff Hibbert, OR manager at Patewood
      Memorial, had plenty of experience with
      manual inventory systems when joining
      the hospital last year. During the first six
      months of the hospital’s operation, the
      materials management staff at Patewood
      Memorial counted inventory via hand-
      held devices for supply replenishment.
      Charge transactions of used inventory
      were then manually keyed by clinical/
      billing staff for the billing of each surgi-
      cal case.
        The staff was consumed with manual
      inventory tasks that left materials man-
      agement staff with less time to pull in-

                               Reprinted with permission, Healthcare Purchasing News, November 2008
                                                                                                          WHAT WORKS
Hibbert. “It was clear that creat-                                                                     rial can now focus on picking
ing a unique barcode for each sur-                                                                     and auditing cases, allowing
gical case based on the physician,                                                                     the clinical staff to focus on
the procedure and the patient                                                                          their respective areas of exper-
would provide us with tremen-                                                                          tise. Hibbert has seen at least
dous capabilities in our reporting                                                                     two FTEs reallocated to differ-
procedures. Ultimately, we antici-                                                                     ent areas two to three days a
pate a cost savings by going to                                                                        week as a result of the im-
this new automated system.”                                                                            proved efficiency.
                                                                                                         “We have weaned all scrub
Hybrid system of open                                                                                  techs and nurses from picking
and closed architecture                                                                                cases,” said Hibbert. “Materi-
Hibbert also understood the ben-                                                                       als distribution staff does it
efits of using Optiflex SS within                                                                      now.”
a hybrid system of open shelv-
ing and closed secure cabinets.                                                                        Reduced consumption
Jones agreed that the added flex-                                                                      and increased charge
ibility of this combination solu-                                                                      capture
tion would bolster the automa-                                                                           About every three months,
tion process and improve overall                                                                         Patewood Memorial now runs
inventory accuracy. This unique                                                                          a “par vs. usage report” gen-
hybrid arrangement gives staff                                                                           erated by OptiFlex SS. This re-
quick access to materials, while                                                                         port helps the hospital further
at the same time providing ad-                                                                           optimize inventory levels
ditional security for high-dollar                                                                        based on past history of utili-
devices.                                                                                                 zation. The result is a finely
  Patewood Memorial chose to                                                                             tuned stock of supplies with
have closed cabinets in the actual                                                                       the right balance that rarely
OR suites and for inventory of                                                                           expire or run out.
high-dollar items such as con-                                                                             “Our system used to order
signed implants. Materials man-                                                                          twice a week; now the auto-
agement also picks supplies from                                                                         mated preference card driven
open shelving in their supply                                                                            supply locations are sending in
area. Whether pulling items from                                                                         orders nightly,” said Hibbert.
open shelves or closed cabinets,                                                                         “The inventory turns have
Optiflex SS barcoded preference cards           Within 30 days after install, on-the-        doubled since implementation, signifi-
drive the process and accurately track        job training was completed and the sys-        cantly decreasing inventory carrying costs.
the utilization and charge it to a specific   tem was up and running. “Once you get            Another significant improvement for
patient case.                                 through that, things become really             Patewood Memorial was realized in
                                              simple,” said Hibbert. “Omnicell techni-       knowing exactly what costs were being
Focus on benefits smoothes                    cal support has been very good, and they       incurred in each OR case. By recording
transition                                    always provide quick responses to our          supply usage based on each patient case
When implementing the new system,             questions.”                                    and by interfacing directly with the bill-
Patewood Memorial knew there would                                                           ing system, OptiFlex SS enables Patewood
be bumps along the way. Thanks to a           Automating the preference                      Memorial to consistently, effectively and
close collaborative effort between            card process                                   accurately charge for product usage. Ac-
Patewood Memorial staff and the               The new system has completely auto-            curacy of this system is contingent upon
Omnicell trainers, however, the transi-       mated the physician preference cards           a strong and enforced vendor policy,
tion was kept smooth. In fact, one of the     which can be electronically viewed in the      which imposes a logical, well-defined
trainers had previously served as an OR       OR suite. Items can be easily taken or         process that controls vendor access and
nurse. “This real-world experience gave       added from either open or closed cabi-         introduction of new products.
her a unique insight into the problems        nets with a simple barcode scan or by the        There’s no doubt that change can be
and issues of inventory flow in the OR,”      touch of a screen. Not only are the sup-       difficult, so would Patewood Memorial
said Hibbert.                                 plies automatically accounted for and re-      do it all over again? “Absolutely,” said
  For two weeks, training representa-         ordered if necessary, they are tracked         Hibbert. “Installation isn’t easy, but the
tives were on site at the hospital to help    back to a specific patient case. “What the     benefits from materials running
with the implementation. Existing phy-        staff likes most is that they rarely run out   smoother in the OR and improved effi-
sician preference cards were audited for      of anything,” explained Hibbert.               ciencies far outweigh the investment we
accuracy and updated in the system. In-         Without having to manually count in-         made in both time and cost.”
ventory par levels were set to ensure that    ventory or key in charges, materials             “I would ask to have it installed in any
sufficient stock would be on hand.            management staff at Patewood Memo-             hospital I worked for,” said Hibbert. HPN

                      Reprinted with permission, Healthcare Purchasing News, November 2008

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