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Cover Story Managing critical care supply tensions |
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INSIDE THE CURRENT ISSUE |
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What Works |
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All sewn up Christiana Care Health System achieves measurable results with Wound Closure Management Services Wound closure products were in high demand at Christiana Care Health System, in Wilmington, DE. The two-hospital, one-surgery-center system was experiencing numerous product stockouts, particularly in the Operating Room. And their materials management was receiving too many STAT calls related to product unavailability. "We were experiencing significant staff frustration with wound closure product availability," said Mark McDermott Jr., director of Materials Management, Christiana Care Health System. "We looked to Cardinal Health to implement a solution that could increase our supply chain efficiency, provide financial savings and improve end-user satisfaction."
To mitigate the problem, Christiana Care Health System first partnered with healthcare products and services provider Cardinal Health in 2002 to find a solution that not only would ensure product availability but also would help increase the system’s cost-effectiveness. The team aimed to improve the ordering process for suture and endo-mechanical supplies in the Operating Room and Electrophysiology/Cardiac Catheter Lab, decrease the number of stocking locations and reduce supply expense. "We understand that clinicians don’t have time for errors," said Lisa Ashby, president of category management for the Cardinal Health Medical segment, "so we’ve developed a comprehensive solution to help them make sure that they’ve got the product they need, exactly where they need it, at the exact time they need it." The Cardinal Health Wound Care Management System was one that worked for Christiana Care Health System. After just one year, the team realized $500,000 in supply expenditure savings and reduced STAT calls from nearly 50 per month to only 4. Efficient and cost-effective At the onset, Christiana Care Health System lacked trending reports related to their product usage. Materials management was ordering product based on perceived need rather than actual usage, and, in many cases, that meant that the facilities were stocking too much of the wrong product in the wrong places. It was a frustrating scenario for everyone involved, especially given the facilities’ space constraints. To help right-size par levels and product purchases, Cardinal Health performed a product usage analysis and instituted monthly reports for everything from days of inventory on hand to turn rate by location. At any time, Christiana Care Health System’s three facilities can identify their inventory dollars on hand in total or by location. "Our team, that included both clinical and materials staff, was successful because of our team culture," said Cathy McCarthy, Cardinal Health field senior market manager for the Northeast. "It was one that embraced change, a collaborative spirit and trust. Working together, we were able to gain tighter control of the inventory." To date, the team has executed a suture buyback that has secured $368,000 in credit for returns for Christiana Care Health System. In 2007, the team also realized $34,000 in annualized spend reduction by eliminating redundant suture products. Now, clinical teams keep one or two boxes of each product on hand which are organized into "suture cubbies" on walls instead of stocked in supply rooms away from their point of use. But the team didn’t stop there. They also labeled and organized stocking locations to ensure that the suture products physicians needed were on hand. By mid-year 2010, they reduced par levels by $17,000, SKUs by $29,000 and inventory by $200,000. With that, they were able to increase inventory turns from 2.96 to 5.06. STAT calls were essentially eliminated, and stockouts became a thing of the past. "I would sum up this program by saying that the end users have benefited from highly organized par locations and improved stock availability," said Bob Martin, clinical supply chain manager, Christiana Care Health System. "Materials benefited by converting $500,000 in asset inventory to a just-in-time basis, and Christiana Care has benefited from a reduced supply spend." Continuous improvement Accounting for procedural changes, staff changes and the constant influx of new varieties of product, Christiana Care Health System and Cardinal Health work continuously to ensure that processes are streamlined and par levels are correct. They examine monthly reports and perform quarterly assessments to make sure that Christiana Care Health System always has the product its clinicians need. Together, Christiana Care Health System and Cardinal Health have established inventory management discipline and developed a supply solution to increase both cost-effectiveness and clinician satisfaction. 
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