Why Should Hospitals Invest in Healthcare Supply Chain Management Technology?

The use of technology in hospitals has been increasing for the last decade and at present, it has reached an all-time high. However, it may be surprising to realize that the healthcare supply chain management (SCM) area of hospitals has not fully embraced technology. According to a survey conducted among 100 hospitals recently, nearly half of these hospitals use less sophisticated/outdated tools or manual processes, such as Excel spreadsheets, to manage supply expenses, inventory, and other supply chain activities.

According to the Association for Healthcare Resource & Materials Management (AHRMM), healthcare supply chain management costs will surpass labor costs shortly for the number one position. But there is good news; similar surveys show potential for significant healthcare supply chain management cost savings. For example, an analysis by Navigant consulting estimates that, by standardizing and streamlining the healthcare supply chain management processes, hospitals can save an average of US$11 million per hospital or 17.7% annually.

 

What is Healthcare Supply Chain Management

Procurement, distribution, and movement of products and services from the receiving deck to the patient encompass the process of healthcare supply chain management.

There are a lot of challenges in healthcare supply chain management processes. The major issues include demand for specific types of product in inventory, hoarding of supplies, out-of-stock issues that may lead to expensive delivery charges, product expirations, unwarranted increase in inventory dollars based on demand, and pilferage, among others. These issues may contribute to out-of-budget supply costs.

Healthcare supply chain management is an extremely complex process. Poor product standardization, inadequate data reporting, a lack of automation throughout the process, and increasing regulatory requirements only add to the difficulties. Thus, an easy way to get rid of all these complexities is to incorporate advanced technologies in the healthcare supply chain management process.

 

Healthcare Supply Chain Management Technology

Advanced healthcare supply chain management technologies are developed to transform the supply chain process to a more efficient one by automating repetitive manual tasks in hospitals and other healthcare organizations. Minimizing waste, enabling timely data-based decision-making, streamlining inventory, and reducing labour, supply, and operational costs are the major benefits of healthcare supply chain management software.

There are mainly two types of healthcare supply chain management technology solutions, enterprise resource planning systems and niche healthcare inventory and healthcare supply chain management solutions.

 

Enterprise Resource Planning (ERP) Systems

ERP systems are not the best for healthcare supply chain management specifically because these systems are used in many industries. Also, the concerned vendors often do not have the required healthcare expertise. As this is mainly implemented by larger and non-healthcare related businesses, it may take a longer time to implement. Also, it requires dedicated customization resources. This makes it inflexible for the healthcare industry supply chain management.

 

Niche Healthcare Inventory and Supply Chain Solutions

This type is known as the best-of-breed healthcare supply chain management solutions. They provide healthcare-directed and flexible solutions as they are affordable and incorporate deeper industry knowledge. These systems can also focus on specific areas such as interventional medicine, surgery, and other healthcare departments.

 

Why Should Hospitals Invest in Healthcare SCM Technology

Although hospitals and other healthcare organizations have demonstrated excellent performance in fighting COVID-19, the pandemic exposed vulnerabilities in the present healthcare supply chain management process. Supply shortages, especially lack of personal protective equipment (PPE), highlighted how poor healthcare supply chain management affected healthcare providers. The underlying concern behind the supply shortage is that hospitals’ supply chains are not well prepared for the future of healthcare.  Organizations are depending upon old models, which are not innovative, agile, or advanced enough to cater to the requirements of the modern data and technology-driven world.

Automating Healthcare supply chain management will be a major differentiator for hospitals at present and in future, impacting all aspects, including brand reputation, consumer trust, and quality of care. Healthcare leaders, such as organization heads and hospital administrators, require a new healthcare supply chain management system to deliver care at a lower cost. To realize this requirement, they have to make bold decisions and speed up the transformation of their healthcare supply chain.

Acceleration of healthcare supply chain management transformation will be grounded in many imperatives, which are related to process, people, and technology. The digital transformation focusing on these areas will fasten the long-term growth and sustainability of healthcare supply chain management.

 

Digital Transformation to Raise Healthcare Supply Chain to New Levels

The Healthcare industry has given importance, other than information systems and key enterprise technologies, to electronic health record platforms in the last decade. Currently, the healthcare industry is on the brink of a digital revolution. Several technologies, such as robotic process automation (RPA), artificial intelligence (AI), and machine learning (ML), are opening new doors for healthcare organizations to evolve to a level beyond anything previously imagined. It will surely affect healthcare supply chain management.

However, the healthcare supply chain has not yet kept pace with changing technologies. To create a fully developed supply chain, hospitals should find innovative ways to integrate their physical process with digital data. Hospitals should start using tools such as predictive analytics along with digital statistics and information to drive decisions.

Investing in this technology integrated healthcare supply chain management, hospitals, and other healthcare organizations will help achieve optimal benefits. However, it needs an efficient deployment of new technologies, such as the integration of ML and AI, and maintain a functioning healthcare system.

 

Collaboration Between People and Technology for Better Results

Years of operating in traditional systems has delayed the progress of healthcare supply chain management. As the consequences of running out of stock can be devastating in the healthcare system, leaders and clinical professionals have to look at supply chain differently. The COVID-19 pandemic has elevated and strengthened the necessity of better collaboration. Now leaders need to act timely to solidify these changes, brought out by the pandemic, to stop people reverting to behaviours that were problematic in the past.

Automation will make the future of the workforce and supply chain workflows more efficient. The greatness of the impact on future healthcare supply chain management performance depends upon the greatness of the automation of work. Hospitals should highly focus on technology to perform various repetitive tasks, including delivering patient food trays, gathering supplies and bringing them to caregivers, picking case carts, and transporting supply carts to storage rooms. Staff efficiency is increased, when repetitive tasks and predictable work are automated and performed by robots. This helps staff focus on more complex tasks that drive innovation and value.

Digital transformation occurs only when there is strong leadership and a conducive culture. Hospitals should realize the value of data in decision making and change their view about the supply chain leader. Modern healthcare supply chain management leaders are those who excel in education, governance, collaboration and communication, and change management. In hospitals, the supply chain management leader position should be elevated to executive level and they should be capable of using modern technologies for effectively handling the healthcare supply chain management process.

 

The Future of Supply Chain Operations

The sole aim of effective healthcare supply chain management has been finding the lowest cost products for the end-user without considering much about the profit of the manufacturer. The alarming product shortages and supply chain disruptions during the pandemic have changed that.  Now, leaders are much more focused on how to diversify manufacturer product origins.

Technological advancements and digital transformation will encourage the efforts to evolve vendor and inventory management, which is evident in procure-to-pay strategies. In case of procure-to-pay strategies, hospitals can reduce cost and increase efficiency by integrating technology assistance in areas such as accounts payable, including invoice discrepancies, match exceptions, and placing purchase orders electronically.

In hospitals, healthcare supply chain management should evolve quickly to forecast and adjust the changing flow of patient volumes and care sites. Increased acute care in the home, utilization of telehealth, and remote patient monitoring will surely change demand for care facilities and supply demands from consumers. Efficiently catering to these requirements with the assistance of the latest technologies will determine the future of hospitals and healthcare supply chain management. In the healthcare supply chain management, technologies will play a vibrant role in boosting competence and reducing cost from now. Get yourself updated to avoid getting outdated!

 

Frequently Asked Questions

 

What is the value of supply chain management in healthcare?

The healthcare supply chain management process ensures the right time availability of medicines, maximizing patient care, minimizing inventory wastage, and minimizing human errors. Healthcare supply chain management ensures timely availability of medicines for all patients at right time at lower cost possible.

 

What are the 5 basic components of supply chain management?

The five basic components of supply chain management are plan, source, manufacture, deliver, and return. Through these five components of supply chain management hospitals ensure the availability of all the medicines in hospitals. Shortage of essential medicines and other articles brings total chaos to the system.

 

Why is Supply Chain Management important for a hospital?

Supply chain management is essential for hospitals and other healthcare organizations as it ensures the availability of medicines and medical equipment so that patients get access to all facilities in time. In order to keep a consistent patient experience, an efficient supply chain management is necessary for all hospitals.

Spotlight

Cedar Park Regional Medical Center

Cedar Park Regional Medical Center was built in 2007 in Cedar Park, Texas. We offer a full-service emergency department, acute care services, women's services, cardiology and vascular services, neurology, orthopedics, spine surgery, imaging and diagnostic services, general medical/surgical services, intensive and critical care.

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Article | August 31, 2023

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Article | September 8, 2023

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Article | November 29, 2023

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Article | September 8, 2023

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Andor Health | November 07, 2023

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Emory Healthcare Teams Up with DrFirst to Enhance Medication Adherence

Emory Healthcare | November 06, 2023

Emory Healthcare aims to improve prescription affordability and medication outcomes by offering comprehensive, real-time data, including patient out-of-pocket drug costs. Emory is optimizing clinician workflows and enhancing patient medication adherence with Fuzion through DrFirst's three medication management services. UPMC Health System employs AI-driven virtual assistants to address medication nonadherence, engaging high-risk patients via SMS or robocall messages before and between prescription fills. Emory Healthcare and DrFirst have collaborated to address medication adherence by providing comprehensive data at the point of care, including options for patients to assess out-of-pocket drug costs. Emory aims to aid patients in achieving prescription affordability and enhancing their medication outcomes. Emory Healthcare has implemented three medication management services available within the Fuzion platform by DrFirst, which offer clinicians access to medication histories. This initiative aims to streamline clinician workflows and enhance medication adherence among patients. This development holds importance in its potential to decrease adverse drug events for Emory Healthcare patients and provide them with AI-driven information about prescription costs during medical visits, thereby fostering transparency and informed decision-making. DrFirst's advanced medication management platform can enhance electronic prescribing workflows by optimizing the usability of clinical data. This platform is capable of electronically completing prior authorizations and addressing claim rejections. Furthermore, it provides real-time prescription drug benefits and pricing information, enabling physicians to discuss medication costs with their patients and potentially transition to more cost-effective therapeutic alternatives. This can reduce prescription abandonment rates and, consequently, enhance overall health outcomes. G. Cameron Deemer, CEO of DrFirst, said. For many patients, especially those with chronic conditions, taking their medications as prescribed is vital to positive health outcomes and staying out of the hospital. [Source – Healthcare IT News] DrFirst believes that precise and comprehensive medication data contributes significantly to patient safety. Additionally, presenting an entire year's worth of patient medication history can expedite medication reconciliation procedures for healthcare providers. Furthermore, providing drug-allergy, dosing, and duplicate therapy alerts directly to clinicians at the point of care supplies them with valuable information. The integration of technology aids in rendering clinical data more user-friendly and facilitates smoother workflows, ultimately aiding clinicians and patients in achieving improved medication outcomes. Emory Healthcare is set to implement HIPAA-compliant automated patient messaging for electronic prescription alerts. This system will allow patients to review their prescriptions and receive relevant patient education materials, among other features. As for the broader trend, the adoption of AI for improving medication adherence has demonstrated its effectiveness, leading to positive outcomes in both clinical and financial aspects.

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Health Technology

Alameda Healthcare Group and Medtronic Unveil Neuroscience Center

Medtronic | November 08, 2023

Alameda Healthcare Group, in partnership with Medtronic, has launched a Neuroscience Center of Excellence to enhance patient care in Egypt and nearby areas. This initiative introduces the StealthStation S8 Surgical Navigation System to revolutionize surgical procedures and enhance clinical outcomes. The Alameda-Medtronic partnership is set to enhance patient care, aligning with Alameda's mission to improve healthcare and solidifying its pioneering role. Alameda Healthcare Group, a premier private healthcare service provider in Egypt, has announced the inauguration of its Neuroscience Center of Excellence, a collaborative effort with Medtronic, a renowned leader in healthcare technology solutions. At the inauguration of the Neuroscience Center of Excellence, esteemed speakers elaborated on the significant role anticipated for the StealthStation S8 Surgical Navigation System in advancing the field of neurosurgery. Meanwhile, Dr. Ramy Amin, Professor of Neurosurgery at Cairo University, led a panel discussion during the launch event. The panel also featured some of the renowned medical consultants, leading neurosurgeons, as well as neurologists. Additionally, Professor Hossam Salah, the Dean of the Faculty of Medicine at Cairo University, graced the event as the guest of honor. The panel discussion explored the pivotal role that this new center is poised to play in enhancing key aspects of neurosurgery. It also commended Alameda's dedication to elevating the quality of patient care through the integration of innovative technology. Neeraj Mishra, Group CEO of Alameda Healthcare, remarked. This partnership represents a substantial step forward in setting new standards for healthcare excellence in Egypt, and we look forward to the benefits it will bring to the patients Alameda continues to serve. [Source – Zawya] He also stated that establishing the Neuroscience Center of Excellence shows Alameda's commitment to advancing technology and raising healthcare standards in Egypt and the surrounding region. With this strategic partnership, Alameda Healthcare Group can incorporate Medtronic's advanced technology into its new center of excellence, thereby bringing about a substantial enhancement in surgical procedures and ultimately improving patient outcomes. Through real-time tracking and advanced imaging capabilities, this technology will enable neurosurgeons to steer complex surgical procedures with heightened precision, thereby enhancing patient results. It will also provide surgeons with various advanced features, including precise imaging, guidance, and different essential surgical tools. The partnership between Alameda Healthcare Group and Medtronic will provide patients with advanced, precise, and patient-focused surgical care. This perfectly aligns with Alameda's mission to improve healthcare for everyone, reinforcing its position as a pioneer in the healthcare industry.

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Health Technology, AI

Emory Healthcare and Andor Health Unite for Virtual AI Healthcare

Andor Health | November 07, 2023

Emory Healthcare has collaborated with Andor Health to mitigate the risks of patient falls and address other safety concerns within the hospital setting while implementing virtual patient observer technology within its healthcare facilities. Andor Health, the creator of ThinkAndor, will employ generative AI technology to access data from various systems, including ambient listening and real-time visualization, to identify common safety risks such as falls and self-harm. In addition, Emory Healthcare will commence a pilot program for the virtual sitter technology in November at two of its hospitals. This program will involve the remote monitoring of at-risk patients on medical and surgical floors, as well as in the emergency departments. Jason Atkins, RN, Vice President and Chief Clinical Informatics Officer for Emory Digital, a part of Emory Healthcare, says. Andor Health's virtual patient observer/virtual sitter technology expands our virtual health initiatives across Emory Healthcare while reducing the burden of nurses and other team members. [Source – Cision PR Newswire] Andor Health's virtual observers collaborate with registered nurses stationed in a control center to employ voice-activated technology to engage in remote conversations with at-risk patients. These interactions involve reminding patients to remain in their beds, prompting them to seek assistance, or offering relevant guidance. Raj Toleti, Chairman and CEO of Andor Health, emphasized that recent technological advancements, such as generative AI-based virtual sitting and ambient monitoring, offer promising opportunities to alleviate operational challenges, mitigate staff shortages, and reduce costs. These innovations enable healthcare systems to concentrate on providing high-quality patient care. Healthcare organizations like Emory Healthcare can efficiently monitor patients and optimize staff effectiveness through large-scale virtual sitting, harnessing the capabilities of virtual hospitals as supplementary support. About Andor Health Andor Health believes in transforming how healthcare teams establish connections and cooperate. Its cloud-based platform, using both machine and human intelligence, accesses information within electronic medical records and provides immediate, actionable insights to healthcare teams, whether they are within or outside the organization. By enhancing communication processes, its solutions expedite the time to treatment, reduce clinician fatigue, and improve patient outcomes. About Emory Healthcare Emory Healthcare is one of the prominent academic health systems in Georgia. At the systemic level, it maintains 2,796 licensed patient beds and hosts a cadre of over 3,450 physicians who practice across over 70 specialized fields. Moreover, it extends its reach by serving a broader population through a collaborative initiative at the St. Francis–Emory Healthcare Hospital in Columbus, ten regional affiliate hospitals, and a closely coordinated network of physicians.

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Health Technology

Emory Healthcare Teams Up with DrFirst to Enhance Medication Adherence

Emory Healthcare | November 06, 2023

Emory Healthcare aims to improve prescription affordability and medication outcomes by offering comprehensive, real-time data, including patient out-of-pocket drug costs. Emory is optimizing clinician workflows and enhancing patient medication adherence with Fuzion through DrFirst's three medication management services. UPMC Health System employs AI-driven virtual assistants to address medication nonadherence, engaging high-risk patients via SMS or robocall messages before and between prescription fills. Emory Healthcare and DrFirst have collaborated to address medication adherence by providing comprehensive data at the point of care, including options for patients to assess out-of-pocket drug costs. Emory aims to aid patients in achieving prescription affordability and enhancing their medication outcomes. Emory Healthcare has implemented three medication management services available within the Fuzion platform by DrFirst, which offer clinicians access to medication histories. This initiative aims to streamline clinician workflows and enhance medication adherence among patients. This development holds importance in its potential to decrease adverse drug events for Emory Healthcare patients and provide them with AI-driven information about prescription costs during medical visits, thereby fostering transparency and informed decision-making. DrFirst's advanced medication management platform can enhance electronic prescribing workflows by optimizing the usability of clinical data. This platform is capable of electronically completing prior authorizations and addressing claim rejections. Furthermore, it provides real-time prescription drug benefits and pricing information, enabling physicians to discuss medication costs with their patients and potentially transition to more cost-effective therapeutic alternatives. This can reduce prescription abandonment rates and, consequently, enhance overall health outcomes. G. Cameron Deemer, CEO of DrFirst, said. For many patients, especially those with chronic conditions, taking their medications as prescribed is vital to positive health outcomes and staying out of the hospital. [Source – Healthcare IT News] DrFirst believes that precise and comprehensive medication data contributes significantly to patient safety. Additionally, presenting an entire year's worth of patient medication history can expedite medication reconciliation procedures for healthcare providers. Furthermore, providing drug-allergy, dosing, and duplicate therapy alerts directly to clinicians at the point of care supplies them with valuable information. The integration of technology aids in rendering clinical data more user-friendly and facilitates smoother workflows, ultimately aiding clinicians and patients in achieving improved medication outcomes. Emory Healthcare is set to implement HIPAA-compliant automated patient messaging for electronic prescription alerts. This system will allow patients to review their prescriptions and receive relevant patient education materials, among other features. As for the broader trend, the adoption of AI for improving medication adherence has demonstrated its effectiveness, leading to positive outcomes in both clinical and financial aspects.

Read More

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