The ROI of Asset Intelligence vs. Asset Tracking in Hospitals

May 22, 2019 8:00:00 AM / by Jag Padala, Chief Technology Officer

Asset tracking is not a new concept in health care. Hospital systems have implemented variations of real-time location systems (RTLS) for mobile medical equipment using a variety of technologies including Wi-Fi, BLE, UWB, RFID, UHF. Partnering asset tracking technology with asset intelligence software provides actionable information to improve both clinical and financial outcomes.

This post focuses on key areas where the return on investment is proven.

Utilization and Equipment Spend 

Asset utilization is the amount of time a particular medical equipment asset is in use delivering patient care and generating revenue.

Without the benefit of automated location tracking, measuring the actual utilization of equipment is extremely difficult. However, when assets are monitored as they move through the hospital system, staff have visibility into patterns that may indicate inefficient processes or opportunities to right-size equipment purchases.

Analyzing the amount of time assets spend in areas like sterilization rooms, dirty storage, clean storage, hallways and patient rooms allows management to make fact-based decisions on how well assets are being utilized. For example, if a large quantity of assets is detected in dirty storage for extended periods of time, a process improvement initiative may be indicated around the workflow to collect, clean and redistribute assets. If clinical staff is indicating they need more of a particular type of equipment, using this data may facilitate the opportunity to reallocate existing assets into areas where they are productive more often vs. buying more.

Search Efficiency 

The second value add is saving nurse and technician footsteps, reducing the time they spend looking for equipment throughout the day.

Although this is a bit more difficult to quantifiably measure, it has specific impact on staff productivity, patient safety and job satisfaction. Offering an app for nurses to immediately locate what they need improves asset utilization and again, can reduce excess inventory purchases that may be initiated simply because staff cannot readily find otherwise available equipment. Providing technicians an app to find assets for recalls improves response times and ensures all affected assets are accounted for, with obvious benefits to patient safety.

Shrinkage 

There are other quantifiable benefits associated with true asset intelligence in hospitals like prevention of hoarding, tracking equipment belonging to different departments and preventing shrinkage (lost, misplaced, stolen) that can contribute significantly to the return on investment.

When reviewing shrinkage, it’s important to note that although these losses can be deliberate (high value items being stolen), it also can occur inadvertently. Equipment can simply be misplaced, moved to the wrong department, or patients are unintentionally discharged to alternate care facilities with your hospital-owned equipment. By providing exit alerting and missing asset reports, staff has a proactive tool to reduce shrinkage significantly whether deliberate or unintentional.

Asset Intelligence in the Real-Time Hospital

The ROI of Asset Intelligence vs. Asset Tracking in HospitalsWith the advent of machine learning and artificial intelligence and a capability to store and process more data, there are myriad new ways hospitals use the data that is collected from its assets that take move beyond asset tracking to true asset intelligence. Here are several examples:

  1. Automated par level recommendations
  2. Machine analysis of process flow to provide recommendations
  3. Usage of smart assets like pumps to provide intelligence that can be over laid on the location information

Let's explore each in more detail.

Automated Par Level Recommendations

It’s possible to estimate the census in ED and OR using AI and ML by looking at past trends and quantifying various factors that contribute to the load on the hospital.

These data can then be used to predict the level and types of equipment needed. Take, for example, wheelchairs, gurneys, IV pumps or any other mobile equipment.

The par level recommendations can vary by day of week and time of day vs. a static par level throughout the day. When par levels are recommended and measured in real time, the system can alert staff about shortages in key equipment and also let them know where the needed assets are currently located and where they are needed.

Machine Analysis of Process Flow to Provide Recommendations

The process flow of asset movement is critical to optimizing usage. How quickly equipment moves from patient care use, to dirty storage, through cleaning / sterilization and back into clean storage for patient care provides insight into how assets are being orchestrated.

With machine learning, asset movements are continuously analyzed and classified. When done manually by humans, this kind of analysis is usually painstaking, often needs expensive consultants and is only done periodically. Having a machine learning algorithm provides for a more continuous monitoring of asset movements and offers actionable insight and recommendations to ensure the flow of the assets is optimal. For example, there could be more pickups scheduled through the day to move assets through cleaning / sterilization and back into circulation faster.

Usage of Smart Assets Like Pumps to Provide Intelligence That Can Be Overlaid on The Location Information

IV pumps are one of the most frequently tracked mobile assets, and smart pumps have the ability to transmit infusion information in real time. This provides a wealth of information to the asset intelligence system.

When staff needs an IV pump, they not only need to know where it’s located, but whether it’s currently available. When location data is paired with data on the current status of the smart pump, wasted time is eliminated by finding only pumps that are not currently in use.

Smart pump asset usage can also be analyzed when real time infusion information is available. In addition to monitoring the time assets spend in the patient rooms, the asset intelligence system can now track when they are actively being used.

Calculating the ROI

With the advent of sophisticated software that includes artificial intelligence and machine learning, hospitals today can easily quantify a return on investment with RTLS.

If you’re interested in exploring a specific ROI value analysis for your facility, TAGNOS can help to identify assets within your facility for which a real-time location solution will drive positive financial and/or clinical outcomes. 

Get in touch here: CONTACT US and we’ll help you calculate the savings that can be achieved.

 

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