Using RFID-based Inventory Management in the Clinical Lab: How We Cut Costs and Improved Productivity
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1 Saint Francis Hospital Laboratory Using RFID-based Inventory Management in the Clinical Lab: How We Cut Costs and Improved Productivity Sharon Cox, MT(ASCP)SC Core Laboratory Supervisor Saint Francis Hospital Tulsa, OK
2 Today s topic How to reduce cost, errors, and increase productivity you could save $300k now and 196k annually by managing ALL your inventory differently? you could reduce costly inventory errors by 96% your annual inventory reconciliation took 1/10 th the time as it does now? you could free up staff to do more meaningful work within the lab?
3 Saint Francis Health System Accredited Facilities Saint Francis Health System Excellence Dignity Justice Integrity Stewardship Saint Francis Hospital South Laureate Psychiatric Clinic and Hospital Warren Clinic Saint Francis Hospital SNF Home Health Hospice DME Saint Francis Urgent Care at Elm Saint Francis Heart Hospital Children s Hospital at Saint Francis
4 Saint Francis Hospital Laboratory Department Statistics Chemistry 1,600 K+/day Hematology 1,400 CBC/day Microbiology 140 cans/day Immunology 6,400 ANA Abs/year Blood Bank 30,000 transfusions/year Transplant/Donors 50 cases per year Pathology 27,000 cases/year Point-of-Care 1,300 glucoses/day Genetic 800 cases/month Outreach 1,600 requisitions/day Volume 8.8M Performed Tests 99% In-house Testing 11% Stat Testing 40% Outreach Testing 267/76 Total Operations/Lab Med Tech FTE s Average Daily Workload 1,700 Outreach Requisitions 30,000 Results 5,000 Specimens 700 Hospital Blood Draws Space 21,000 Laboratory (sq. ft.) 12 Draw Stations Ranked #12 Top U.S. Outreach Labs by Volume (g2reports.com)
5 Saint Francis Health System We all have similar pressures in our industry
6 Saint Francis Hospital Laboratory Striving for Continuous Improvement Project Selection and Management Identify Gaps or Areas for Improvement Impact on Process, Patient or Physician Options to Solve Technical Expertise Needed
7 Saint Francis Hospital Laboratory Striving for Continuous Improvement Project Selection and Management Date Added Tech Dept Issue/Problem Notes Pri Form Resp Person Needed Complete? 6/3/2010 JH Core Hepatitis testing move from Axsym to Architect Jay will Charlotte the s/co ratios 1 Not needed PM/SA/CC Mar-12 Y 6/3/2010 JH Core Iris Urinalysis Specs to Charlotte SS/SA/CC Mar-12 Y 6/9/2010 SC Core Installation of BioRad Unity Program SP upgrade needed PM/SA/SC Mar-12 Y 6/14/2010 DL STH/STW Ruby - Will do ULTICARE interface UltiCare quote $12,500 2 SS/SA/CC Mar-12 Y 6/17/2010 JH Core Folate move from Axsym to Architect - ROLL NOT NEEDE Folates ready - waiting for Art 2 PM/SC/SA/CC Mar-12 Y 6/17/2010 JH Core B12 move from Axsym to Architect B12 not released from Abbott yet 2 PM/SC/SA/CC Mar-12 Y 6/23/2010 JH Core CA-125 and CA-15.3 Axsym to Architect Same as Folates 1 JH/SA/SC/CC Jan-13 8/24/2010 Immun Immunocap Interface After Ruby - Task for new IS position 1 Jun-12 Y 10/8/2010 Immun New DSX Test - Cardiolipin Testing in progress Completed SA/CC Mar-12 Y 1/27/2011 Immun Immunology & Vitamin D Procedures through the track For centrifuging 3 Mar-12 Y 1/28/2011 Immun Transition DSX result entry into Inst Mgr IM training prior to roll date 2 SA Mar-12 Y 2/14/2011 Core Keppra - New Procedure for C8000 (with database roll) QA completed - Ready for DB roll 1 PM/SC/CC Mar-12 Y 2/23/2011 Core Build AT III, Protein S, and Protein C in IM QA completed - Ready for DB roll 2 SS/CC Mar-12 Y Laboratory Project Selection Prioritization Accountability Assigned Ongoing Meetings to Monitor Success
8 Performance Optimization through Informatics Integrating People, Process, and Technology Moving Averages Visualization of Quality Trends Inventory Manager Workflow Management E-Lab Solutions Connect Automated Proficiency Test Reporting Storage Management Quality Management Measurable Quality Results Easy to Use Custom Reports (ODBC) Dashboards and Repots Real-Time Quality and Status Indications Results Management Specimen Management Remote Analyzer Monitoring Check Operations Anytime & Anywhere 8
9 Saint Francis Hospital Laboratory Leveraging New Technology to Solve Old Problems Informatics & Automation creates new efficiencies in processes and systems Solution: Visualization of complex data to improve efficiency and quality of results Trends - Moving Averages Remote instrument performance monitoring Real time QC monitoring Monitoring of Analyzer and Assay Performance using Sigma Metrics Inventory Management Outcomes Improved resource utilization and employee morale Automated manual processes Error reduction Sustainable peak performance Product loss reduction Bottom line: Informatics & process automation optimizes manual or already efficient structures
10 Process Inefficiencies Inventory Management Prevailing Issues Personnel Time Costs Too much time spent ordering and managing inventory Products delivered with little or no vendor notification Manual check-in / check-out processes lead to errors in inventory levels Manual Process Error Costs 27% Error Rate: Accounted for $68k in additional expenses per year Manual labeling and storing of products Frequent, time-consuming demand or physical inventories Required annually and to reconcile discrepant inventory levels Inefficient product usage and waste due to expired material Current inventory process is manual, time consuming, and inefficient.
11 Methods Reviewed Three solutions were reviewed to determine applicability to the need Manual (current method) Semi-automated (touch) Automated (no touch) Processing Method Manual Bar Code System RFID System Line of Sight Yes Yes No Time to Locate Inventory Risk of Errors & Non- Compliance Labor Requirement High Hunt and Find High Manual Introduction of Error High Very Labor Intensive High Hunt and Find Medium Requires Manual Handling Audit-trail Medium Hunt & Find w/ Rule-based Informatics Low Real-time, Automatic Location Low Fully Automated Audit Trail Low Automated find w/ Rule-based Informatics
12 Building a Complete Solution Inventory Management Requires Hardware and Software Working in Sync RFID Hardware SAP ERP Software Integrated Workflow Software Complete Solution Radio Frequency Identification Automate inventory receiving and tracking without line of site to inventory Enterprise Resource Planning Enables quick and easy communication and notifications with purchasing and Saint Francis SAP software Integrated Workflow Software Centralizes data and enables easy visualization of information Full Bidirectional Interface Between Hospital ERP and Abbott Diagnostics
13 Technology Solution Inventory Management by Abbott Laboratories Radio Frequency IDentification (RFID) Provides a unique identifier for each tagged item Requires no direct line-of-sight (LOS) Benefits when used in Saint Francis: Avoid preventable stock outs (save money on send out costs) Track inventory levels (save money on overnight shipping) Track product expiration (save money on expired products) Lab staff utilization (less time managing inventory) Improve employee moral (reduction of mundane tasks)
14 Saint Francis Hospital Real-Time Inventory Tracking Dashboard-Driven Information Inventory Levels, Expirations, and Shipment Information all in one Place Visualization of Inventory for Faster Decisions
15 Site Feedback Feedback has been very positive on the inventory management solution! Installed November suppliers loaded in system RFID Tagged Items Quick understanding of product dating Easy implementation Reduction in labor time Easy to Use Ability to have an instant visual display of inventory items that have already expired or getting close to expiration Easy to convert whole lab inventory process to use for all vendors Ability to complete a physical inventory in 10 minutes using the handheld. The process used to take 6 hours to complete Core Lab Staff loves using the handhelds because the new inventory system is much easier than our old system
16 Outcomes Initial Savings of $296k and annual savings of $169k (ROI < 6 months) $38.6 k Savings in Annual Cycle Count Costs $26.6 k Annual Savings in Overnight Shipping $296 k Reduction in Inventory On Hand **Hands on Handling Annual Labor Hours: 1,219 $ Amount: $35,121 $35.1 k Annual Savings from Drop in Handling Time** $68.3 k Annual Savings from Reduction in Inventory Error Rate* (27% to 1.1%) *Inventory Error Rate Expired Stock on Hand: $33,242 Urgent Order Costs: $15,836 Out of Stock Losses: $19,269
17 Saint Francis Health System Clinical Excellence 2011, 2012 and 2013 Awards Clinical and Emergency Excellence Recipient of HealthGrades Distinguished Hospital Award for Clinical Excellence and Emergency Medicine Excellence Only hospital in Oklahoma to earn the award in 2011, 2012 and 2013 One of only 269 hospitals in the country! Top 5% of hospitals in the U.S. in emergency medicine Received the most 5 Star ratings (12) in the state of Oklahoma in HealthGrades 2011 ratings Received PRC 5 Star rating for Medical Staff Satisfaction for laboratory services Received PRC 5 Star rating for Patient Satisfaction for inpatient care at Children s Hospital and NICU
18 Thank you!!! Questions?
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