Armed with new storage tech, one hospital simplified its space

by Rick Dana Barlow

Healthcare Purchasing News Senior Editor Rick Dana Barlow learned that one hospital gained considerable control over its space by installing some new storage system technology.

So Meg Trimby, system director, contracts/capital acquisition, Provena Health, Bolingbrook, IL, spent some time fielding a few questions about what she did and why, as well as what trends her professional colleagues and peers may be seeing in the future.

HPN: Will you highlight some of the noteworthy improvements and innovations in storage systems you’ve seen within the last year or so and explain why you think they’re needed?

Meg Trimby

TRIMBY: Healthcare is so strapped for resources that any technology that improves efficiencies, reduces errors and adds to the satisfaction of staff that is overwhelmed with the demands placed on them, requires serious consideration. Reimbursement is lessening, the general public is becoming less able to pay for the care they require and labor continues to increase in cost.

With financial resources being very limited the PAR Excellence system offers a reasonable alternative to some of the other more costly supply storage and replenishment systems. The greatest feature that sold me on their system was that it combined the controls and efficiencies of the closed systems with the advantages of an open system that is far more flexible and maximizes the use of the available space.

Everyone knows how storage space for supplies is at a premium and the PAR Excellence system essentially eliminates wasted space. The way the bins are placed on the louvered panels allows you to design the layout in a very tight and organized manner. The traditional closed systems are too deep, forcing you to place items behind other items, which makes it difficult to find things and keep it well organized. There is a lot of open space that cannot be used for storage simply due to the design of the closed cabinets and the shelving structure.

Closed structures still require a fair amount of manual intervention for the charging process as well as the restocking process. [But] the PAR Excellence system has removed the bulk of the manual intervention by incorporating the use of scales, which immediately transmit the activity to the system. The transmission adjusts the actual counts, whether it be an increase due to stock replenishment, an item being replaced because it wasn’t needed or an item was removed for patient use.

 The process for charging a patient for supplies is incorporated into the system with the use of a simple touch screen. This process is so simple – and intuitive – most individuals require no training. The organization of the supplies is much easier to maintain, everything is easily visible, the clinical staff are much more satisfied with the layout and ease of use which has improved the compliance rate for charging for the supplies.

Efficiencies for the replenishment process have improved dramatically. We doubled the number of unit-based PAR levels without increasing staff. In fact, we reduced our staff by 1.5 FTEs. The overall operations of the central supply department are much smoother, and stock is getting put away more timely because the staff is able to complete the PAR level replenishment process much faster.

As demands change on clinical units, incorporating those requests into the PAR levels is quick and easy. The PAR Excellence technology is very user-friendly and provides numerous reports that the department managers can access at any time. These reports provide concrete data that helps materials management staff work collaboratively with the clinical staff so the correct supplies are available when needed and the inventory levels are maintained to maximize the appropriate use of our financial resources.

Charging specific patients for every supply used has become less important over the years simply due to the impact of how hospitals are reimbursed. The days of receiving payment for every supply used are long gone. We need to scrutinize what the true value is of an item and how will it contribute to the care and recovery of the patient.

One difficult situation that healthcare faces is that the general public is constantly exposed to a multitude of advertisements for drugs, supplies and implants, each expounding on their respective attributes. Because of this intense marketing and the easy access to information on the Internet patients are demanding what they want used without regard for the cost. Additionally, there seems to be an expectation from patients and their family members that hospitals mimic hotel-like environments and amenities. Obviously, all of this comes at a cost and the resources are being consumed at a much faster rate than reimbursement is received.

Storage systems will need to provide clean, simple layouts for quick and efficient access. Labor costs associated with supply chain activities will have to be considered when the systems are designed – ultimately finding every avenue to reduce manual intervention.

As products become more complicated and varied the storage and subsequent retrieval needs to minimize the potential for grabbing the wrong item.

We will see facilities moving away from the ongoing capital lease arrangements for closed storage systems that can no longer be justified by improved capture of revenue because that revenue is no longer available with the changes in reimbursement practices.

1. As much as possible keep the supply storage areas on various units as similar as possible so like items are stored in the same location thereby making it easy to locate supplies regardless of what unit/department staff is assigned.

2. Work closely with the clinical staff when determining what items are stocked on the unit specific storage areas so you meet their routine needs and minimize the amount of calls for items that are not readily available.

3. Incorporate simple approaches that capitalize on technology and minimize manual intervention. The simpler the process the more compliant and supportive your staff will be. Make certain the technology you choose provides robust reporting capabilities so you can leverage the data available to manage your inventory investment and your service to the end-users.

4. Minimize the bulky shelving and cabinets that quickly consume premium space and rapidly add up in cost.