RFID SPECIAL REPORTS
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Part 2: RFID in Healthcare
Inventory on Hand
Costs incurred due to reduction of inventory on hand go up to 3 percent (see 9) of the device cost. To reduce these, one would like to have:
RFID can be deployed for tracking the maximum number of times each device can be used before it’s disposed. This improves safety and also charts the usage demand for each device for smoother inventory control and further supply chain management.
Charge Capturing
Costs incurred due to loss in capturing the expense costs average from 4 to 20 percent. To reduce this, one would like to have:
Resource Standardization
The costs incurred due to nonstandardization of the delivery, selection and usage of resources average from 5 to 15 percent. To reduce this, one would like to have:
Increased threat and hazard detection
The costs incurred due to threats from various surgical instruments are .05 percent of the surgical instruments’ original cost. To reduce this, one would like to have:
Taxes
There are various state technology development tax credits available to the healthcare industry for upgrading their information infrastructure. These incentives could reduce your tax rate. However, since the taxes are calculated at a regional level, and all facilities may not benefit from these tax credits, we have not included it as a parameter in our calculations.
Regulatory Compliance
RFID when integrated with the back end systems that do the business processing, automates the process of auditing and report filing. This will reduce costs by reducing errors and time spent on labor. However, since this factor depends on the existing infrastructure at the provider level and not all facilities may have the required infrastructure, we have not included this parameter in our calculations.
Costs incurred due to reduction of inventory on hand go up to 3 percent (see 9) of the device cost. To reduce these, one would like to have:
- Faster inventory turns: lower financial cost of inventory on hand
- Higher productivity
- Optimized supply levels
- Reduce rental equipment vendors charges that result from holding equipment past due date (see 10)
- Reduce inventory by 10 percent: Calculate the reduction’s value based on the cost of money
RFID can be deployed for tracking the maximum number of times each device can be used before it’s disposed. This improves safety and also charts the usage demand for each device for smoother inventory control and further supply chain management.
Charge Capturing
Costs incurred due to loss in capturing the expense costs average from 4 to 20 percent. To reduce this, one would like to have:
- Increased reimbursements
- Reuse devices: Calculate on a device being reused 260 times a year
- Depending on coding procedures, apply reimbursement again for another procedure on the same instrument once it has been sterilized, yielding additional revenue from the same device
- Increased order management
- Accurate and Itemized billing accountability
- The ability to integrate automated captured data into the organizations financial ledger
Resource Standardization
The costs incurred due to nonstandardization of the delivery, selection and usage of resources average from 5 to 15 percent. To reduce this, one would like to have:
- Volume savings in purchasing only one type of frequently used supply
- Reduced spending on inventory, which will allow increased spending to Improve supply quality
- Lower costs through the purchase of recycled devices: Recycled devices save
Increased threat and hazard detection
The costs incurred due to threats from various surgical instruments are .05 percent of the surgical instruments’ original cost. To reduce this, one would like to have:
- Hazardous waste reduction
- Elimination of patient-retained instruments (in .0015% of all surgeries, instruments are accidentally left inside patients)
- Improved inventory count - only 88 percent of the procedures have accurate counts
- Verified sterilization process
- Reduced insurance premiums
Taxes
There are various state technology development tax credits available to the healthcare industry for upgrading their information infrastructure. These incentives could reduce your tax rate. However, since the taxes are calculated at a regional level, and all facilities may not benefit from these tax credits, we have not included it as a parameter in our calculations.
Regulatory Compliance
RFID when integrated with the back end systems that do the business processing, automates the process of auditing and report filing. This will reduce costs by reducing errors and time spent on labor. However, since this factor depends on the existing infrastructure at the provider level and not all facilities may have the required infrastructure, we have not included this parameter in our calculations.
