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Cost analysis of hospital material management systems.

Integrated healthcare material management begins with manufactures of medical/surgical supplies, uses distributors and ends at the point of use at hospitals. Recent material management philosophies in the healthcare industry, such as just-in-time and stockless systems, are yet to be fully evaluated. In order to evaluate the cost effectiveness of each type of material management technique, a cost model for hospital materials management has been designed. Several case scenarios are analyzed and results are reported.

Cost Savings↗

Purchasing in a supply chain environment.

Why the interest in purchasing? In the typical company, material costs are 40% to 75% of the cost of goods sold, labor is 5% to 15%, and the balance is burden. The typical company has $4-$5 in purchased cost to $1 in labor. Most companies are implementing material requirements planning (MRP II) and enterprise resource planning systems to control the $1 in labor and have little expectation in the area of purchasing savings. Yet a dollar saved in purchasing goes directly to the bottom line. I ran a survey of 100 Class A users of MRP II; in all 100 of the companies, the biggest payback was in the area of purchasing.

Appointments and Schedules↗

Unit dose drug distribution in teaching hospitals: key characteristics and centralized versus decentralized approaches.

A comparative review of decentralized versus centralized unit dose drug distribution systems for teaching hospitals is discussed. A drug distribution system Task Force, established at the Toronto Western Division of The Toronto Hospital, identified key characteristics of a safe, accountable and efficient drug distribution system. Included were considerations of patient safety, cost effectiveness, efficient use of nursing time, security, clarification of professional role, hospital and professional standards of practice, and evaluation criteria. Interdisciplinary task force discussions and extensive literature review resulted in a recommendation for the implementation of a decentralized unit dose drug distribution system. It was recognized that physical plant and material handling systems must be considered for each individual facility before a decision to decentralize can be made.

Centralized Hospital Services↗

A study of inventory analysis in Forward Medical Stores Depot.

A study was conducted in Forward Medical Stores Depot with a view to determine the scope of its utility, efficacy and to educate staff working in the depot regarding techniques of inventory analysis system. 292 drugs were selected and were studied for one year from 01 Apr 91 to 31 Mar 92. The expenditure on 01 section (drugs) without application of inventory analysis during 90-91 was Rs. 60, 82,926.70. The expenditure was Rs. 51,61,589.08 after application of the techniques. A significant statistical reduction in the consumption pattern and expenditure was noticed by Rs. 9,21,3773.62. An uninterrupted supply of vital and essential drugs was ensured upto great extent.

Cost Savings↗

Overcoming unit dose drug distribution system logistical problems on a 32-acre campus.

The literature contains numerous articles regarding the implementation of unit dose drug distribution systems, but little has been written concerning the logistical problems sometimes encountered with such systems. This article describes the implementation of a drug distribution system at a psychiatric institution at which the inpatient units are scattered throughout a 32-acre campus.

Hospital Bed Capacity, 100 to 299↗

Outfitting your hospital for the new wave of robots.

Automated materials handling systems have provided dramatic labor savings and efficiency benefits to healthcare facilities. A growing trend is the use of a new breed of service robots that provide automated materials handling without major modifications to the existing building. The robots navigate through hallways, go through doors and ride elevators using a computerized controller that contains a layout of each floor of the hospital; the robots do not rely on any type of physical track to guide them on their way. The robots are programmed to pick up or deliver supplies to nursing stations or other departments, and determine the best route. Purchase and rental options exist at a substantial savings over human labor.

Cost Savings↗

[Outline and effectiveness of support system in the surgical center by supply, processing and distribution center (SPD)].

Supply, Processing and Distribution system had been introduced to surgical center (the University of Tokyo Hospital) since October of 2002. This system had reduced stock for medicine and materials and decreased medical cost dramatically. We designed some kits for therapeutic drugs related to anesthesia. They were prepared for general anesthesia, epidural and spinal anesthesia, and cardiovascular anesthesia, respectively. One kit had been used for one patient, and new kits were prepared in the anesthesia preparation room by pharmaceutical department staffs. Equipment, for general anesthesia as well as epidural and spinal anesthesia, and central catheter set were also designed and provided for each patient by SPD system. According to the questionnaire of anesthesia residents before and after introduction of SPD system, the time spent for anesthesia preparation had been reduced and 92.3% residents had answered that preparation for anesthesia on the previous day was getting easier. Most of the anesthesia residents had been less stressed after introduction of SPD system. Beside the dramatic economical effect, coordination with SPD system and pharmaceutical department reduced anesthesia preparation time and stress of the staff. Introduction of Support system of SPD to surgical center is important for safe and effective management of operating rooms.

Anesthesia↗

A computer planning model for blood platelet production and distribution.

We consider a class of policies for stocking hospital blood banks with units of random donor platelet concentrate ('Platelets') based upon scheduled daily deliveries from a regional blood center to replenish the platelet inventory to a fixed 'base stock' level. The measures of interest are the 'shortage rate' (the proportion of days for which the on-hand inventory at the hospital blood bank is insufficient to meet the demand) and the 'outdate rate' (the proportion of total units shipped which are not transfused within the usable life span of 5 days). Our principal results give a predictive model which relates the base stock level to the shortage rate and outdate rate. Our model uses only the mean daily demand as a parameter. It provides a basis to unify the results from other studies which have demonstrated improvements in platelet inventory management in particular hospitals and blood centers.

Blood Banks↗

Blood inventory management in the type and screen era.

BACKGROUND AND OBJECTIVE: Previous models on the management of hospital blood inventories have mostly dealt with the optimization of variables related to the assigned, cross-matched inventory. Because the type and screen (T and S) procedure allows blood banks to manage surgical reserves with only unassigned inventories, it becomes necessary to gain insight into the factors that determine the efficiency of this kind of blood inventory. STUDY DESIGN: Stochastic model that simulates the routine operation of a hospital blood bank inventory over a finite number of days was used. Factors that were analysed for their influence on outdate and shortage rates included the mean (MEAN) and variation (CVAR) in daily transfusion, the remaining shelf life of blood units shipped from the blood supplier (RSL) and the number of days between consecutive shipments (INT). RESULTS: Outdate and shortage rates grew exponentially with CVAR, an effect that could be partially counterbalanced by increasing RSL. The variables, MEAN and INT, had little influence on the inventory, provided that blood stocks shipped from the supplier are targeted at the expected average demand for transfusion and RSL is greater than INT. CONCLUSIONS: In hospitals that do not hold cross-matched inventories, CVAR is the major parameter in determining the blood inventory performance. Hospitals with large CVAR must be supplied with young red blood cell (RBC) units, whereas hospitals with smaller CVAR perform well with older stocks. These results advocate for using each hospital's CVAR as the leader parameter in regional optimization policies based on recycling blood units among participating hospitals.

Blood Banks↗