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PubMed1977

Capitalizing on capital purchases.

The acquisition of capital equipment is considerably more involved than the purchase of supply items. Because of the long life of capital equipment, errors in judgment at the time of acquisition can haunt a purchasing manager for years. But if he exercises good judgment and does not lose sight of the particular needs of his hospital, capital equipment can be acquired in a manner that will be in the continuing best interests of the hospital.

Capital Expenditures↗
PubMed1985

Challenges in purchasing and inventory control.

In this concluding installment in a multipart series, issues that should be considered in the improvement of hospital pharmacy purchasing and inventory control systems are presented. Pharmacists must be aware of possible variation in bioavailability among different formulations of the same drug and evaluate new vendors critically. Hospital pharmacists and industry representatives should strive for a cooperative relationship by fostering ongoing dialogue. Pharmacists must continue to demand competitive bid prices on generically equivalent products of equal quality. Firm contact prices cannot be expected if product use estimates are unreliable. It is unethical to encourage additional price reductions on competitive products after a formal bid has been received. Institutions should limit their participation to one group purchasing organization or wholesaler for the competitive bid process. Inventory management through methods such as ABC analysis, economic-order quantities, calculated optimum reorder points, and other quantitative measurements should become commonplace. The use of data processing systems and devices can enable pharmacists to become more proficient at pharmaceutical purchasing and inventory control. The acquisition and distribution of pharmaceuticals in health-care institutions require good management to capture the opportunities in this area for pharmacy to contribute to fiscally sound health care.

Drug Industry↗
PubMed1982

Budgeting and controllable cost variances. The case of multiple diagnoses, multiple services, and multiple resources.

This paper examines an unfavorable cost variance in an institution which employs multiple resources to provide stay specific and ancillary services to patients presenting multiple diagnoses. It partitions the difference between actual and expected costs into components that are the responsibility of an identifiable individual or group of individuals. The analysis demonstrates that the components comprising an unfavorable cost variance are attributable to factor prices, the use of real resources, the mix of patients, and the composition of care provided by the institution. In addition, the interactive effects of these factors are also identified.

Budgets↗
PubMed2006

Cost analysis in interventional radiology--A tool to optimize management costs.

OBJECTIVE: The objective of the study was to analyze the methods to reduce cost in interventional radiology departments by reorganizing procurement. MATERIALS AND METHODS: All products used in the Department of Interventional Radiology were inventoried. An ABC-analysis was completed and A-products (high-value and high turnover products) underwent a XYZ-analysis which predicted demand on the basis of ordering frequency. Then criteria for a procurement strategy for the different material categories were fixed. The net working capital (NWC) was calculated using an interest rate of 8%/year. RESULTS: Total annual material turnover was 353,000 euro. The value of all A-products determined by the inventory was 260,000 euro. Changes in the A-product procurement strategy tapped a cost reduction potential of 14,500/year euro. The resulting total saving was 17,200 euro. Improved stores management added another 37,500 euro. The total cost cut of 52,000 euro is equivalent to 14.7% of annual expenses. CONCLUSION: A flexible procurement strategy helps to reduce the storage and capital tie-up costs of A-products in interventional radiology without affecting the quality of service provided to patients.

Cost Control↗
PubMed1996

Testing prototype products in the operating room.

Historically, the discussion of which products to use in a hospital has centered around disposable versus reusable products; however, new technology has produced a line of products that are not only disposable but degradable. Perioperative staff members at Redmond Regional Medical Center, Rome, Ga, participated in the testing, evaluation, and use of these prototype products during their development.

Disposable Equipment↗
PubMedDate not supplied

Clinical engineering & equipment policy for Sao Paulo State, Brazil.

A comprehensive equipment policy was established for the health system of Sao Paulo State, Brazil. Research, development and regulation issues were integrated with all phases of the equipment life cycle, including: planning, procurement, acceptance testing, commissioning, maintenance, repair, refitting, and decommissioning. This policy was implemented by a multidisciplinary group, which advised and coordinated planning and procurement, created a technology management and maintenance network composed of clinical engineering teams and reference centers, and worked closely with manufacturers, universities and research institutes to improve the quality and increase the variety of domestic medical products in order to substitute for imported devices.

Brazil↗