Using Predictive Analytics to Reduce Costs and Improve Patient Outcomes in the Healthcare Supply Chain

Imagine knowing how your hospital's stock inventory changes according to the time of year. Imagine paring the injectable and implantable devices you stock down to those that show the best outcomes for the price. And imagine information from those devices flowing to the patient record as they are used.

Fortunately, healthcare procurement managers and supply chain leaders don’t have to imagine anymore, thanks to the Tribridge Health360 Materials Management.

Predictive analytics is transforming industries, and healthcare should be no exception. Better visibility into the supply chain means better decision-making at the point of care and tighter controls on inventory. And for patients, that can translate into better outcomes through fewer device failures.

Health 360 Materials Management is built on the Microsoft Dynamics 365 platform, which includes access to the Power BI visualization tool that presents data in standard dashboards or visuals that you customize. Seeing truly is believing.

Get a handle on supply costs

The supply category comprises about 17% of a hospital's total budget, more than the typical hospital allocates to bad debt expenses. This figure includes all supplies, including food, drugs and non-stock items such as gloves, bandages and sutures. But it also includes pricier stock items such as artificial hips, other implantable devices and injectables. These items are not only expensive, they also must be matched precisely to the right patient.

The FDA is in the midst of establishing a Unique Device Identification (UDI) system for medical devices, but the program began in 2015 "for implantable, life-supporting or life-sustaining devices of all classes." By integrating with the hospital EMR, information from the device flows through the Tribridge Materials Management directly to the patient record to meet the FDA mandate. Staff simply scan the device as part of the test or procedure and it will identify the patient.

In addition to meeting the FDA mandate, the solution can help hospitals get a better grasp on their supply chain since it can specify what items to track. In addition to required tracking, price point is a common metric, say anything over $200, $500 or whatever a hospital decides.

Saving money, improving outcomes

By tracking these items, hospitals can closely monitor the quantities in stock and, over time, and determine the failure rates. Because inventory is tracked and monitored, surgical assistants and nurses will no longer have to hoard the expensive items the surgeons they work with demand. These items don’t belong in a secret cupboard, where they can expire because someone forgot where they were. This will save the hospital money.

Tracking failure rates can have positive impacts on patients, physicians and the hospital. If physicians are using different products for the same type of surgery, for example, a hospital may lose out on volume discounts for that product. Consolidating stock to the best-performing items will reduce the number of patient complications that can hurt reimbursement rates and patient satisfaction scores. It should also result in greater job satisfaction by supporting good outcomes.

Health360 Materials Management is a powerful predictive analytics tool that allows hospitals to stay on top of supply costs while also improving patient outcomes.

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