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People, Places, Processes & Products that Influence the Supply Chain

 

INSIDE THE CURRENT ISSUE

June 2010

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Measuring barcoding’s future relevance by the numbers

Fundamental questions remain: Are we there yet? What’s taking so long?

by Rick Dana Barlow

Multidimensional viewing may be all the rage in Hollywood and in video games for entertainment purposes, and gaining a foothold among clinicians for diagnostic imaging and surgical applications.

But in healthcare supply chain operations, anything beyond traditional linear or 1-D barcoding is turning more than a few heads among providers – at least those actually using barcodes.

The emergence of radiofrequency identification (RFID) and real-time location system (RTLS) technologies adds another wrinkle in competing for attention.

So what does multidimensional barcoding offer supply chain managers and more importantly, how does barcoding in general remain relevant going forward?

Healthcare Purchasing News Senior Editor Rick Dana Barlow asked a few experts considered thought leaders in healthcare information technology for their insights.

HPN: What value does 2-D barcoding offer supply chain management in healthcare?

Gale White, vice president, infusion systems, B. Braun Medical Inc.,
Bethlehem, PA

2-D barcoding offers supply chain managers the ability to capture and extract significantly more data than the traditional linear barcode label and 2-D readers have been found to be durable and reliable.

 

 

Dennis Black, director, e-Business, BD,
Franklin Lakes, NJ

Linear barcodes have been proven in retail and other industries for identifying various items such as locations, cases and individual products. Healthcare can leverage the technology and economies of existing equipment and applications.

 

 

Donna Lee, Alliances Specialist, Healthcare, Honeywell Scanning & Mobility, Blackwood, NJ

The added data encoding capability offers the ability to track expired products, identify recalled products, record serial numbers, and any other pertinent information in a smaller label. This is a particularly compelling application for [direct part marking] on surgical instruments.

 

 

Vivian Funkhouser, principal, Global Healthcare Solutions, Motorola Enterprise Mobility Solutions, Holtsville, NY

2-D barcodes, in general, allow for significantly more data to be made available to caregivers when compared to the linear barcode. Depending on the situation, there could be advantages for 2-D information; for example, in tracking surgical implants and assets. A typical 1-D barcode can reasonably contain only 10 or so digits before the length of the code becomes unmanageable. However with 2-D, you can have dozens, hundreds or even thousands of characters in the physically larger codes. With the advent of greater data available, you can not only identify what something is, you can also have meaningful expiration date information, standard warnings, contraindications, etc. There may even be uses that we have not yet identified because of the early phases of adoption.

Lana Makhanik, vice president, business development, VUEMED Inc., Seattle

Linear barcodes are easy to read and are currently used on nearly 100 percent of products. There is also a trend towards combining different pieces of information, e.g., product reference, lot number and expiration date, from multiple barcodes into single barcodes, known as concatenated barcodes. They are slightly more complex to read because of the parsing of information, but they simplify workflow by reducing the number of scans needed and by eliminating the potential for human error.

Cristina DeMartini, market development leader, Zebra Technologies Corp., Lincolnshire, IL

2-D barcoding is actually becoming the standard in supply chain management within healthcare primarily because of the standardizations that are coming from GS1. These standards are enabling healthcare organizations to track more information within a barcode in a smaller space. This is significant because a lot of the items used in hospital settings are extremely small. For example, if a laboratory attempts to put a linear barcode on a very small vial or surgical instrument, putting more data into that linear barcode could make the barcode larger than the package. With a 2-D barcode, much more information can be captured in a very small space. And with some 2-D barcodes, the label can still be read even if portions of the barcode are missing.

In addition to space efficiencies, more data can be tracked using a 2-D barcode as opposed to a linear barcode. For example, in one 2-D barcode, we can track the manufacturer, the lot number, the expiration date, information about the product, and its location. Having more data allows for more flexibility and more visibility in a facility’s supply chain. For example, recalled or expired products can be identified and pulled from the shelves or utilized prior to their expiration dates.

What value does 3-D barcoding offer over 2-D and traditional linear barcoding?

WHITE: Because of the technically complex creation method, 3-D labels are virtually impossible to duplicate, greatly inhibiting the ability to produce counterfeit products. This helps materials managers ensure proper product pedigree.

BLACK: A 2-D or data matrix barcode enables more data to be compressed in a small footprint, allowing codes to be placed on smaller packages. While 2-D barcoding will allow some additional small packages to be barcoded, I am not certain that that we will see widespread usage in the near term. A linear barcode typically includes a human readable GTIN below the barcode. As hospitals transition to scanning, it would be advantageous to have human readable data right below the barcode. When hospitals begin transacting using GTINs, the human readable data available in a linear barcode becomes critical as a back up source of data.

LEE: Some people have used 3-D to describe a color barcode. There are multiple versions of color barcodes, but it is difficult to control colors among all printers and to calibrate those colors with readers. The financial woes of healthcare investment in technology are too great for hospitals to seriously consider further investment in 3-D applications. Healthcare has adopted 2-D symbologies and recognizes their value. [Five] years ago, a healthcare IT professional would not have recognized an Aztec code, but today its very common place for them to say ‘that’s an Aztec code.’ The value of 2-D barcoding over linear barcoding for specific use cases, e.g., wrist bands, labeling small vials in the pharmacy, etc., is now widely understood.

FUNKHOUSER: As in the case of 2-D codes being able to contain more data in the same physical space as a 1-D code, similarly might a 3-D code be able to contain more data than a 2-D code. It is not clear if 3-D is either necessary or easy to reliably implement due to the nature of how 3-D codes are presently designed – color is the 3rd dimension – today’s 2-D codes are robust and data-rich for their given physical sizes.

MAKHANIK: Currently, 3-D barcodes on medical devices are by far the exception, accounting for an estimated less than half of 1 percent of all barcodes. They have the advantage of packing the same amount of information into a much smaller space, but reading them requires more sophisticated – and expensive – scanners. Their use only makes sense where labeling space is at a premium, such as on small vials, syringes, or some pharmaceutical products. Since the vast majority of medical products have packaging large enough to accommodate 2-D barcodes, there is not much incentive to move to 3-D barcodes at this time.

What economic and technological developments in barcode applications will keep it relevant for the future – and not render it prematurely obsolete – particularly in the face of RFID and RTLS?

WHITE: Three things will keep barcode applications relevant; the cost of the label, the cost of label-producing equipment and the availability of readers.

Labels are currently produced and affixed to virtually all products within the hospital. The additional cost of adding barcoding symbology is virtually zero. No new technology has that promise.

Barcode labels can be produced using the printers currently utilized throughout hospitals today. Therefore, the implementation of a barcoding solution would incur no additional label-producing equipment costs.

Barcode label readers have proven to be extremely durable and reliable. They can be embedded in a wide range of equipment and hand-held devices that can be attached to most any data entry interface. Most hospitals already have a vast supply of barcode readers that can be deployed for a wide range of applications.

BLACK: While I don’t question the usefulness of RFID for tracking some products today, I don’t expect RFID or RTLS to replace barcodes any time soon if ever. We’re comparing active to passive technologies. RFID is great for mass scanning, but it is challenged with selectivity. In some applications, the barcode is in fact the best way to identify a product or package being used for a specific transaction.

Cost may also play a factor. For some medical devices, the cost of the RFID tag would exceed the cost of the individual product. It does not seem likely that the market will bear the expense of putting RFID tags on these low-cost products. The industry also has to consider the data needs and infrastructure necessary to implement RFID on a large scale.

The key objective of barcoding is product identification. The relevancy of the barcoding system will be dependent on having an evolving database that can provide useful product information that can be accessed using barcode reference numbers. We need to collectively implement GDSN, synchronize our data and modify all or our systems before we even attempt widespread use of RFID.

LEE: Barcoding will remain the lower cost labeling and reading solution for most applications. RFID and RTLS are compelling solutions for some applications, but until the overall cost comes close to a barcode system, the threat of barcode obsolescence is not a great risk.

FUNKHOUSER: Because of their ease of use, global acceptance and inexpensive design, barcodes will remain prevalent in their current form for the foreseeable future. We do not anticipate RFID to replace barcodes. They are two separate technologies and have different applications that we believe will co-exist for a long time. Each technology can be deployed throughout the organization to track assets and people. It is important to assess the needs and goals in conjunction with budget to determine which workflow will provide the greatest benefit, ROI and lowest total-cost-of-ownership in the end to achieve the organization’s goals.

MAKHANIK: Concatenated barcodes and 3-D barcodes are two examples of technological developments, as is the emerging GS1 standard being pushed by hospitals to standardize barcodes for the healthcare industry. But the main selling point for barcodes over RFID and RTLS will continue to be economic, particularly when it comes to tracking perishable, consumable products. RTLS simply has not turned out to be as economically viable as predicted. Even Walmart and the Department of Defense have cut back on their expansion plans. The chips themselves are one factor. In the hospital environment, where only a handful of medical products come with embedded RFID tags, materials management or clinical staff have to code and affix them to each and every package themselves, creating a huge loss of productivity. RFID sensors are another problem area, since they can and do fail, and if not placed properly can leave ‘dead zones’ where products simply disappear from system view. The advantage with RFID and RTLS of knowing where items are is counter-weighted by the burden and expense of implementing and maintaining these systems. The ROI simply isn’t there. Barcode systems offer an ROI in the 400 percent-800 percent range and will be the dominant technology for years to come for this simple reason alone. Moreover, a more than sufficient level of granularity and integrity of the data is achieved with barcodes, without justifying the use of more advanced technology that is vastly more costly.

Where RFID and RTLS technologies make more sense is for tracking long-term/permanent assets, such as beds, wheelchairs, portable defibrillators, IV drips, even patients. These items and patients are continuously moved around within a hospital and locating them quickly and easily is essential. Although costly and time-consuming, it can be financially justifiable to invest in an RFID/RTLS infrastructure for tracking such permanent and valuable assets.

DE MARTINI: Barcoding and RFID will co-exist for a long time. There are some applications that are better suited for barcoding, such as [barcoded medication administration] and others that are better suited for RFID, such as RTLS.

RFID is more expensive and requires a more complex and costly implementation than barcoding, but there are some areas where RFID may be an advantage. In the pharmaceutical supply chain, RFID may actually replace barcodes and be beneficial in tracking where a medication has been from the time that it was manufactured all the way through its supply chain until the time it reaches the patient. By using an RFID chip to maintain an electronic pedigree, or e-pedigree, of the medication, information about the medication’s handling throughout the supply chain can be read and written. This enables easier product recalls and also helps to identify where it is and if it needs to be used first before it expires.

Other applications may be better suited for barcoding, however. Lower-cost goods, for example, may not be well-suited to track via RFID. Using a 10-cent RFID chip on a [bandage] that costs less than a cent, does not make sense from an economic perspective. Therefore, there will continue to be many places where it will make more sense to use a barcode than it would be to use an RFID chip.

However with RFID, without the need for true line-of-sight, a patient wristband can be under several blanket layers and still be read using an RFID chip. But in some applications, line-of-sight is beneficial such as administering medication to a patient and a visual check is desired to ensure that the patient you’re giving that medication to is the right one. In addition, RFID has lower read rates around liquids so in the laboratory, for example, if liquid biological products are being tracked, some types of RFID may not be the right technology.