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I. Executive Summary.............................................................................................................................. 3
II. About this White Paper.........................................................................................................................5
III. Definitions........................................................................................................................................... 6
IV. Public Hospital Expenditure in Australia............................................................................................. 7
V. The Cost of Inefficient Mobile Asset Management..............................................................................9
VI. Current Processes for Managing Mobile Assets................................................................................12
VII. Costs Associated with Mobile Asset Management.........................................................................15
VIII. Other Costs Associated with Inefficient Mobile Asset Management............................................. 23
IX. The patient experience is impacted................................................................................................. 29
X. Adoption of Mobile Asset Management Solutions............................................................................ 31
XI. Systems and Processes to Cut Through the Clutter........................................................................ 34
XII. Appendix......................................................................................................................................... 38
Contact.................................................................................................................................................. 38
Legal Disclaimer......................................................................................................................................39
CONTENTS
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I. EXECUTIVE SUMMARY
Inefficient use of mobile assets is a crucial
issue in the Australian hospital system,
resulting in higher costs, inefficiencies in
patient care, and poor patient experiences.
Mobile assets (such as infusion pumps,
oxygen cylinders, intra-venous (IV)
pumps, ventilators/breathing devices, and
pulse oximeters) are increasingly used in
Australian hospitals as an integral part of the
Impact
32,500 hours
Over-purchased
mobile assets
Inventory
replacement
costs from loss or
mishandling
Under-utilisation of
mobile assets
Other concerns
Delays in admissions,
treatment start times
or discharges
Source:
Frost & Sullivan research.
Based on data from 2013.
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their services.
of devices.
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technology development.
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II. DEFINITIONS
Hospital inventories include a wide range of medical
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2007 - 08
2008 - 09
2009 - 10
2010 - 11
2011 - 12
32,411
35,098
36,506
40,202
42,426
71,152
78,563
84,847
90,108
97,815
103,563
113,661
121,353
130,310
140,241
Bloomberg Visual Data, Bloomberg Best (and Worst): Most Efficient Health Care: Countries http://www.bloomberg.com/visual-data/
best-and-worst/most-efficient-health-care-countries
2
Australian Institute of Health and Welfare, Health Expenditure Australia 2011-12, http://www.aihw.gov.au/publicationdetail/?id=60129544658 (25 Sept 2013)
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Hospital expenditure can be categorised into capital expenditure and recurrent or operating expenditure.
In 2011-2012, capital expenditure was $7.9 billion while recurrent expenditure, which includes expenditure
on mobile devices, consumables and wages, contributed to around 94.4% or $132.3 billion of the total
healthcare expenditure. Approximately $3.8 billion of the recurrent expenditure was spent on aids and
appliances, with growth of around 10% annually.3
Public healthcare services in Australia are provided by 753 hospitals, with 535 facilities having less than 50
beds, 136 facilities having 50 to 200 beds, and 82 facilities with more than 200 beds.
In 2011-2012, public hospitals accounted for the largest component (31.5%) of the recurrent healthcare
expenditure. Between 2007-2008 and 2011-2012, the recurrent healthcare expenditure on public hospital
services grew by almost 35%.4
Capital Expenditure
$ 7.9 billion (5.6%)
Public Hospitals
$ 41.6 billion (31.5%)
Medical Services
$ 24.1 billion (18.2%)
Private Hospitals
$ 11.5 billion (8.7%)
Recurrent Expenditure
$ 132.3 billion (94.4%)
Medications
$ 19.7 billion (14.9%)
Dental Services
$ 8.5 billion (6.4%)
Others
$ 23.1 billion (17.4%)
Note: Others include patient transport services, research, community health, public health, administration, etc. Source: AIHW
3
Australian Institute of Health and Welfare , Health Expenditure Australia 2011-12, http://www.aihw.gov.au/publicationdetail/?id=60129544658 (25 Sep 2013)
4
Australian Institute of Health and Welfare, Health Expenditure Australia 2011-12, http://www.aihw.gov.au/publicationdetail/?id=60129544658 (25 Sep 2013)
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Figure 3: Cost Per Casemix-adjusted Separation in Public Hospitals in Australia, 2007-2008 to 2011-2012
Cost per
CasemixAdjusted
Separation
($)
5600
4,918
5,204
4,706
4,531
4400
4,215
3200
2000
2007 - 08
2008 - 09
2009 - 10
2010 - 11
2011 - 12
Source: AIHW
5
Australian Institute of Health and Welfare, Health Expenditure Australia 2011-12, http://www.aihw.gov.au/publicationdetail/?id=60129544658, http://www.aihw.gov.au/publication-detail/?id=6442467479 (25 Sep 2013)
6
Australian Institute of Health and Welfare, Hospital Performance: Cost per Casemix-adjusted Separation, http://www.aihw.gov.au/
haag11-12/hospital-performance-cost-per-separation (25 Sep 2013)
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Although Australia is ranked among the most efficient healthcare systems in the world,7 it can still reduce
its healthcare spending without compromising the quality of care. While factors such as medical errors,
hospital-acquired infections, treatment variations, ineffective use of information technology (IT), preventable
hospital admissions and readmissions can result in higher costs, under-utilisation of mobile assets also
contributes to hospital over-spending. It is estimated that $1 billion can be saved by having a better pricing
system for public hospital treatment in Australia.8 There is a huge gap between the treatment costs in highand low-cost hospitals with the funds being spent inefficiently in the hospitals that provide the same level
of care at a higher cost.
Bloomberg Visual Data, Bloomberg Best (and Worst): Most Efficient Health Care: Countries, http://www.bloomberg.com/visual-data/
best-and-worst/most-efficient-health-care-countries
8
Grattan Institute, Controlling Costly Care: A billion-dollar Hospital Opportunity, http://grattan.edu.au/
publications/reports/post/controlling-costly-care-a-billion-dollar-hospital-opportunity
9
Frost & Sullivan analysis based on data collected through interviews and published data. Average salary of nurses taken as
$29.45/hour based on nursing wage rates published by Queensland Heath.
10
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One of the more significant costs of inefficient mobile asset management is the amount of time spent by
nurses in locating mobile devices. With an estimated 65,000 nurses employed in public hospitals, and with
around 30 minutes on average lost each shift to find mobile assets, the daily loss is estimated at 32,500
hours in patient care, equivalent to around $957,000 per day in salaries.9
In 2011, all States and Territories agreed to a range of National Health Reforms by signing the National
Health Reform Agreement. One of the key provisions under the agreement was the adoption of activitybased funding (ABF) as the primary basis for funding the majority of public hospital services, with an aim
to improve timely access to quality care and maintain sustainability and efficiency of public health services.
With ABF, hospitals get paid for the number and mix of patients they treat. A facility receives more funding
if it treats more patients and complicated treatment cases. Thus, it is important for hospitals to be able to
accurately allocate costs and expenditure, including recurrent costs, based on the patient load.
9
Frost & Sullivan analysis based on data collected through interviews and published data. Average salary of nurses taken as
$29.45/hour based on nursing wage rates published by Queensland Heath.
11
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Ideal World
Real World
Point of Care
Point of Care
Dept. X
Dept. Y
Dept. X
- Timely
Return
- Delayed
Return
- Erroneous
Record
Equipment Keeping
Store
- Central or distributed
- Electronic Recording
Equipment of Entry and Exit
Store
- Timely
Return
- Timely
Maintenance
Maintenance
12
Dept. Y
Lost
Equipment
- Delayed
Return
- Reactive
Maintenance
Maintenance
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According to interviews with biomedical engineers, investments in new technologies and infrastructure
are evaluated based on their impact on both delivery of care and hospital costs. The return on investment
(ROI) in terms on improvements in the quality and efficiency of care is becoming an increasingly important
management discussion, even in public hospitals. One out of three nursing unit managers reveals
that investments directly associated with better care delivery are generally given priority over other
infrastructural improvements.
Almost all respondents state that their hospitals maintain electronic inventories of mobile assets, but only
one reports the current use of a tracking system which notifies equipment managers when a mobile device
is moved between designated areas. At all the other hospitals surveyed, asset tracking is conducted through
register entries by staff. There are conflicting opinions surrounding the management of electronic inventories
half of the respondents prefer centrally-managed stores, while the other half are likely to delegate the task
to the respective departments. In this context, existing processes for mobile asset management can be
summarised as follows:
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Only a small number of hospitals are considering investing in real-time location sensing (RTLS) technologies
that allow automated, real-time asset tracking (see Table 3).
30%
25%
0%
5%
No electronic system
25%
5%
There is an opportunity for improvement in the area of asset maintenance. Current asset management
systems do not support advanced analytics capabilities, or the ability to integrate with clinical information
systems and electronic health records (EHR).
Table 3: Proportion of Hospitals Considering an Electronic Asset Management and Tracking Solution
Proportion of Hospitals by Bed Size
<500 Beds
>500 Beds
Considering an electronic asset management
and tracking solution
15%
20%
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Mapping mobile device demand and trends within hospitals is a complex function as it varies considerably
across departments. Acute and emergency care departments are device-intensive with a higher average
cost of devices per bed compared to sub-acute, general wards, and aged care units. The cost of mobile
devices has risen significantly at public healthcare facilities in Australia. While currency fluctuations have
contributed to price increases, another primary driver is market perception, where prices for healthcarerelated assets, even on standard purchases such as mattresses for hospital use, tend to be marked at a
premium price by vendors. Maintenance and replacement costs of mobile devices have escalated as well,
especially for the acute and emergency care units.
This Frost & Sullivan study has gathered data and opinions on the following areas:
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Table 4: Average Number of Mobile Devices per Bed in Public Hospitals in Australia, 2013
Average number of
mobile devices per bed
<5
34%
38%
6-10
58%
38%
>10
8%
24%
As shown in Table 4, most public hospitals have less than 10 mobile devices per bed. Approximately 90%
of hospitals with less than 500 beds and 75% of hospitals with more than 500 beds have less than 10
mobile devices per bed. The average number of mobile devices per bed is slightly higher at larger hospitals
(more than 500 beds).
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Table 5: Average Cost of Mobile Devices per Bed11 in Public Hospitals in Australia, 2013
Average cost of
mobile devices per bed ($)
<2,000
25%
12%
2,000-4,000
67%
50%
>4,000
8%
38%
As shown in Table 5, the average cost of mobile devices is around $3,080 per bed in public hospitals, but
the cost is higher in hospitals with more than 500 beds ($3,500 per bed) compared to hospitals with fewer
than 500 beds ($2,670).
Respondents were provided a list of mobile assets that could be used in their facility. We obtained an estimate of the number of
devices attached to an occupied patient bed in a general ward followed by the respondents estimate on the average cost of these
devices attached to the bed. The average cost does not include cost of maintenance or loss of mobile assets.
11
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<40%
18%
0%
40%-60%
40%
50%
>60%
42%
50%
In an ideal scenario, utilisation of mobile assets should be more than 80%, with units like emergency care
running at over 90% utilisation.12 However, as shown in Table 6, our research indicates that in 50% of
hospitals with up to 500 beds, the utilisation of mobile devices is less than 60%. Although, the utilisation of
mobile devices is slightly higher for larger hospitals (more than 500 beds), it is nowhere near the optimum
level. Under-utilisation has significant cost implications as it leads to over-purchasing of assets, increased
asset loss, and reduced staff productivity due to misplaced devices.
Based on Frost & Sullivan research, the total value of mobile devices
at a typical 500-bed public hospital is estimated at $1.8 million. In a
best-case scenario the hospital is using devices at 60% utilisation,
whereas the latest Real-time Location System (RTLS) systems
have shown that utilisation of up to 80% can be achieved. Thus, a
500-bed hospital that carries mobile assets worth $1.8 million
can expect to reduce just its purchasing cost of inventory by
$360,000 annually through advanced asset management and
tracking solutions. This does not include the benefits provided in
reducing maintenance and staffing costs.
Interviews conducted by Frost &Sullivan, GE Healthcare, Out of Control: Little-used Clinical Assets are Draining Healthcare Budgets,
http://partners.gehealthcare.com/07_HFM_July_horblyuk.pdf (Jul 2012)
12
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Figure 5: Trends in the Volume, Cost, and Utilisation of Mobile Devices in Public Hospitals in Australia, 2010-2013
Proportion
of Respondents
100%
23%
8%
20%
6%
18%
54%
54%
50%
35%
18%
0%
Number of mobile
devices per bed
13%
38%
13%
Average cost of mobile
devices per bed
Increase (>20%)
Increase (10-20%)
Increase (<10%)
Decrease (>20%)
Decrease (10-20%)
Decrease (<10%)
Average utilisation
of mobile devices
No Change
Source: Frost & Sullivan analysis based on data collected through interviews.
As shown in Figure 5, around 50% of hospitals are seeing an increase of over 10% in the number of mobile
devices per bed and at around one-third of hospitals the cost of mobile devices per bed is increasing by
over 10%.
In 2009, NSW Health invested $70 million in 10,000 new state-of-the-art infusion
pumps to improve the safety of IV medication delivery in the States public healthcare
facilities. If the State health department had performed a thorough assessment
of metrics using an asset management and tracking solution to evaluate the actual
demand for pumps, pump utilisation, pump delivery time to understand the number of
pumps it had at hand, how the pumps were being used by staff, and actual purchase
need, it could have saved around $14 million in capital expenditure and additional
operating costs for maintenance and service per year by increasing pump utilisation by
only 20%.13
Source: NSW Health, NSW: Hospitals Get $70 Million Injection For IV Pumps, http://ehln.org/?p=382 (10 Sep 2009) and Frost &
Sullivan analysis
13
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Table 7: Average Annual Cost and Trend in Capital Expenditure, Rental Cost, Replacement Cost, and Maintenance Cost
of Mobile Devices for a Typical 200 Bed Public Hospital in Australia, 2010-2013
Average Cost $ (2013)
Rental cost of mobile devices
$35,000
$53,000
$280,000
1-4%
annual growth
5-8%
annual growth
Trend (2010-2013)
>8%
annual growth
Source: Frost & Sullivan analysis based on data collected through interviews.
Public hospitals have witnessed an increase in rental, replacement, and maintenance fees of mobile devices
over the past three years (see Table 7).
Most hospitals prefer to buy rather than rent mobile devices, excluding oxygen cylinders, specialty beds,
mattresses, and wheelchairs, to avoid potential delays that often occur when rental companies are unable to
deliver products on time. Additionally, a number of hospitals complain about the inconsistency in the quality
and condition of devices supplied. The higher emphasis on buying and storage leads to unpredictability in
the investment required for purchasing mobile devices each year.
Approximately 10% of the asset inventory needs to be replaced annually, due to either loss or mishandling
of devices. A typical 500-bed public hospital is estimated to spend an average of $175,000 per year on
replacing mobile devices and an average of $700,000 on maintenance of existing mobile devices every year.
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The cost associated with inefficient mobile asset management in hospitals is significant as it can lead to
devices being misplaced or lost, equipment requiring frequent repairs or replacement, and clinical staff
spending considerable amount of time locating equipment, which increases investment in assets, escalates
hospital expenditure, and affects the quality of healthcare services.
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Challenges in working with multiple vendors for renting mobile devices; and
Frequently
4
3
50%
25%
25%
0%
2
1
Never
10%
Inability to locate mobile
devices when needed
Note: Respondents were asked to rate the statement Inability to locate mobile devices when needed
on a scale of 1 to 5 where 1 stands for Never and 5 stands for Frequently.
Source: Frost & Sullivan analysis based on data collected through interviews.
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As shown in Figure 6, the hospitals surveyed agree that they are sometimes unable to find devices when
needed, with 65% of hospitals reporting that they face this challenge frequently at their facilities.
Around 95% of end users believe that the inability
to locate medical devices when needed affects
the quality of healthcare delivery, as it leads to
delayed patient treatment. Searching for missing
devices also places more pressure on the nurses
who are responsible for delivering timely patient
care. It significantly adds to their physical effort and
sneaker time during the course of the day.
Lost or misplaced devices are also a concern for equipment managers and biomedical engineers, because
timely delivery of appropriate devices is a key performance indicator for them. Some respondents describe
weekly search procedures which require a nurse to spend several hours in a week to collect devices that are
not in the correct location and return them to their appropriate stores. There is opportunity for automation
here that will allow biomedical engineers to capture 100% of performance quality and calibration checks
while eliminating the need for human resources and reducing the chance of error or oversight.
Table 8: Number of Minutes a Nurse Loses per Day in Locating Mobile Devices in Public Hospitals in Australia
Average number of minutes a nurse loses per day
in locating mobile devices
Proportion of nurses
17%
15-30 minutes
32%
31-45 minutes
9%
42%
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The Royal Adelaide Hospital campuses have over 2,000 nurses. Each nurse
spends an average of 30 minutes per day locating mobile devices. This
is equivalent to around 125 nurses in the campuses spending their entire
day on this activity and not being able to devote any time for patient care. 14
One respondent mentioned that they were able to overcome this issue of locating mobile equipment at their
facility after investing in an asset tracking and RFID system, which led to faster equipment turnaround time
and better utilisation of equipment.
Source: Royal Adelaide Hospital, http://www.rah.sa.gov.au/nurse/n_e_overview.php and Frost & Sullivan analysis based on data
gathered through the study.
14
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Figure 7: Challenges in Working with Multiple Vendors for Renting Mobile Devices
Proportion
of Respondents
100%
20%
Major Challenge
3
50%
40%
2
1
Not a Challenge
27%
0%
Challenges in Working
with Multiple Vendors for
Renting Mobile Devices
Note: Respondents were asked to rate the statement Working with multiple vendors for renting mobile devices
on a scale of 1 to 5 where 1 stands for Not a challenge and 5 stands for Major challenge.
Source: Frost & Sullivan analysis based on data collected through interviews.
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Frequently
4
25%
50%
3
2
31%
Never
19%
0%
Occurrence of
mishandling or loss of
mobile devices
Note: Respondents were asked to rate the statement Mishandling or loss of mobile devices
on a scale of 1 to 5 where 1 stands for Never occurs and 5 stands for Frequently occurs.
Source: Frost & Sullivan analysis based on data collected through interviews.
Six
years
ago, I had 80
wheelchairs. I am
down to about
15 simply due to
the loss of these
wheelchairs.
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Device maintenance is conducted based on defined timelines and procedures. Current systems are neither
predictive in terms of required maintenance schedules or costs, nor are they able to detect or diagnose
ad-hoc maintenance and repair needs. A few respondents describe incidents where mobile devices were
found left at inappropriate locations. It is difficult for biomedical engineers to locate abandoned devices and
spend additional time and money to repair them. Repairs can take up to six months and the hospital has
to bear the opportunity cost of not having the device readily available.
Public hospitals have severe space constraints which can make device storage difficult. Many hospitals cite
this as a major reason for being unable to create a central store for all equipment. Creating a central storage
location requires significant space, and adds to the staffs time and effort to retrieve the devices. Hospitals
generally maintain their own inventories each department is responsible for the maintenance, safety, and
storage of its pool of devices. However, this does not prevent devices from moving around departments
without the original owner being informed, leading to conditions that further increase device search times
as well as create an atmosphere where co-workers compete for resources.
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Some respondents have provided specific examples of how inefficient asset management can affect the
quality of patient care:
Slow to start IV therapy for a patient as staff unable to find the necessary equipment;
Inability to shift patients from accident & emergency (A&E) department to the general ward due to
unavailability of a telemetry system; and
Constant calls from the recovery ward as they are short of patient-controlled analgesia
(PCA) pumps.
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With the adoption of ABF as the primary basis for funding a majority of hospital services, public hospitals
are being encouraged to maximise the delivery of services with available funds and prevent delays in
providing clinical care. There is also a push to introduce pay-for-performance schemes payment models
that reward physicians, hospitals, medical groups, and other healthcare providers based on performance
measures for quality and efficiency. Queensland Health is the first to incorporate pay-for-performance
elements into hospital funding in Australia through their Clinical Practice Improvement Payment (CPIP) trial
program, where hospitals are paid to achieve targeted levels of patient safety and quality.15
The Commonwealth and State and Territory governments have agreed to improve patient access to elective
surgery, emergency department, and sub-acute services under the National Health Reform Agreement.
The National Emergency Access Target (NEAT) is a component of the agreement with an aim to ensure that
by 2015, 90% of all patients presented to a public hospital emergency department (ED) will either physically
leave the ED for admission to hospital, be referred to another hospital for treatment or be discharged
home within four hours. The National Elective Surgery Targets (NEST) is another component with the aim
to progressively increase the timeliness of elective surgeries performed so that by 2016, 100% of patients
receive their elective surgery within the clinically-recommended time.16
Healthcare facilities must commit to improving workflow efficiency, patient throughput, staff productivity as
well as patient and staff safety to implement these initiatives and programs. Improvements in management
of mobile assets will be a critical component in ensuring that patients receive appropriate medical care at
the right time, and that nursing staff spend their time on patient care, which is their principal responsibility,
rather than locating mobile assets.
15
16
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Figure 9: Current Usage of an Asset Management and Tracking Solution in Public Hospitals in Australia, 2013
Proportion
of Respondents
100%
Yes
No
60%
83%
50%
40%
17%
0%
200-500 beds
>500 beds
Source: Frost & Sullivan analysis based on data collected through interviews.
17
NSW Health, Annual Report 2012-2013, http://www.health.nsw.gov.au/publications/Publications/annualreport13/HealthAR-201213-ch06-Funding-and-Expenditure.pdf
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I don't know why the management has not thought about this.
Maybe it is the cost or just something that has never been
brought up either internally or externally.
In order to improve the adoption of mobile asset tracking and management solutions, there is an immediate
need to increase the awareness of the benefits of these solutions among hospital stakeholders and decisionmakers, in areas such as:
ROI achieved through cost savings (capital and operating expenditure) even if the initial outlay
is high;
Benefits such as improved patient care, staff productivity, and workflow efficiency; and
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Using the RTLS technology, AgileTrac enables the tracking of mobile medical assets via easy-to-use web
tools. Users get direct access to the information they need to:
Control distribution by using real-time inventory tracking to manage stock levels of critical assets;
Improve compliance and safety by tracking device lifecycles, generating reports on the percentage
of time in use, storage, cleaning, and repair;
Reduce rental expenses by calculating rental cost per day and tracking due dates for timely return
to avoid excess fees;
Decrease capital expenditures by right-sizing the equipment inventory and preventing impulse
buys; and
Prevent loss through customised loss prevention alerts that help keep vital equipment where it
belongs.
Here are examples of how hospitals are improving efficiency and reducing costs with the AgileTrac
Asset Manager.
One hospital had two pumps for every patient. With more efficient workflow processes, they
were able to take 250 pumps out of the mobile equipment inventory. Capital expenditure fell by
US$450,000 and operational expenses by US$30,000 per year.
By redesigning asset workflows and implementing AgileTrac, one hospital reduced its pump
inventory by one-third, resulting in maintenance savings of US$104,000 per year. It also eliminated
730,000 minutes of pump search time the equivalent of 7.5 FTEs.
A 350-bed hospital was able to cut pump inventory by 20% for lease/rental savings of US$1
million and virtually eliminate equipment-related delays in patient care with AgileTrac.
A health system uses AgileTrac to manage more than 11,000 assets from wheelchairs to IV pumps
in four hospitals. Within five years, the system has saved more than US$5 million by reducing
inventory and improving asset utilisation and staff productivity.
Please visit the following website for additional information on GE Healthcares asset
management solutions:
http://www3.gehealthcare.com.sg/en-GB/Services/Comprehensive_Services/Asset_Management
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Case Study 1
Client:
Ellis Medicine, a 438-bed community and teaching healthcare system serves as the principal healthcare
provider for more than 800,000 people in upstate New York.
Challenge:
In 2010, Ellis Medicine was considering upgrading its analog infusion pumps to newer-generation smart
pumps that improve the safety of IV medication delivery. At the time, Ellis had approximately 500 pumps
at its main hospital, but nurses continually complained that it was difficult to find one when needed. The
facility wanted to understand what it had on hand, how staff were using the pumps, and what it really
needed to purchase.
Solution:
Ellis Medicine engaged GE Healthcare to find the answers to its questions. Initial analysis revealed that the
hospital had more than enough pumps, but ineffective workflow and pump management processes were
hampering distribution and causing perceived shortages. Working with GE, Ellis staff determined a desired
future state of operations and developed a procedure to better manage IV pumps. Central to that solution
was the AgileTrac real-time location system, where an RFID tag is placed on a piece of equipment so its
location can be tracked in real-time on computers throughout the facility. Ellis has expanded its mobile
asset tracking to include other pieces of equipment such as telemetry units and wound vacs.
Benefits:
Improved mobile asset management has had a significant operational impact for Ellis Medicine:
Reduced inventory expenses: Although there were 500 IV pumps in circulation, Ellis Medicine
discovered it only required around 340 to meet patient needs efficiently, which helped in reducing
both capital and operating costs for maintenance and service.
Avoidance of capital expenditure: In purchasing next-generation IV pumps, Ellis was able to reduce
its projected capital outlay by 30%.
Lower rental costs: With more effective distribution and tracking of mobile assets, Ellis now leases
fewer pieces of equipment.
Improved biomed efficiency: One unforeseen benefit was the ability to quickly locate critical pieces of
equipment to fulfil regulatory inspections.
The reductions in capital and operating expenditures have generated more than US$1.1 million in savings
and cost avoidance for Ellis Medicine since 2010, more than twice the financial return guaranteed by GE
Healthcare.
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Case Study 2
Client:
Virtua, a healthcare system in New Jersey consists of four hospitals, 885 beds, and several additional
facilities including two urgent-care centers.
Challenge:
In 2010, Virtua was preparing to open a new replacement hospital in New Jersey. At the time, in order
to locate one of Virtuas 10,000 mobile medical devices, staffers often had to hunt through hallways and
make multiple phone calls.
Solution:
Virtua embarked on an initiative of deploying GE Healthcare's AgileTrac solution to better monitor and
assign beds, as well as the IV pumps, telemetry units, and other mobile medical equipment nurses and
doctors rely on to care for patients. Each piece of equipment was tagged with an RFID tag that enabled
managers to track assets throughout the hospital on the computer, making it easier and quicker to find
needed equipment.
Benefits:
Virtua cut equipment wait times saving an estimated US$1.2 million after installing the solution. Improved
mobile asset management has provided significant operational impact for Virtua:
Prior to implementing the system, the average wait time between asking for an urgently-required
piece of equipment and receiving it was 202 minutes. The average wait time is now 12 minutes an
improvement of 94%;
For routine equipment, which are not urgently needed, response time improved by 92%, or from an
average of 184 minutes to 14 minutes; and
In the case of frequently used, high-demand equipment, such as IV pumps, AgileTrac alerts the
equipment depot when inventories are low so that supply can be replenished before requests are
made.
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XII. APPENDIX
Contact:
David Dembo
David Venning
GM Solutions
GE Healthcare ANZ
GE Healthcare ANZ
03 9239 8493
03 9239 8482
0417 247713
david.dembo@ge.com
david.venning@ge.com
Rhenu Bhuller
Maz Khan
Natasha Gulati
Industry Director,
Industry Manager,
Healthcare
Healthcare
Connected Health
Asia-Pacific
Asia-Pacific
E: rbhuller@frost.com
E: maz.khan@frost.com
E: natasha.gulati@frost.com
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Quantitative market information is based primarily on interviews and therefore is subject to fluctuation.
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