Solutions for Moving Beyond Traditional Inventory Management

The healthcare industry is increasingly turning to advanced digital inventory management systems, especially in critical areas like surgery and procedural departments. Traditional manual processes are becoming too costly and inefficient for today’s healthcare demands. While automation promises a future of seamless, end-to-end inventory management, implementing a comprehensive solution is complex. The unique challenges of managing inventory in procedural areas require more than standard supply chain methods; they demand a dynamic, tailored approach.

The Limitations of Traditional Healthcare Inventory Systems

Many large hospitals have adopted inventory management systems and are gradually integrating enterprise resource planning (ERP) platforms to unify their healthcare operations. These systems are essential for ensuring that hospitals have the necessary supplies based on usage, demand, and cost. However, despite their importance, these systems often fall short, leading to gaps that can result in financial waste and patient safety risks.

Common Challenges in Healthcare Inventory Management

1. Inadequate Monitoring: Traditional inventory management systems track products being checked in and out but often fail to identify expired or recalled products still on shelves, posing significant risks.
2. Hidden Supply Issues: These systems frequently overlook supplies that are misplaced in storage rooms or hidden in specialty carts—a common issue in hospital supply chains.
3. Critical Data Gaps: Many inventory systems do not capture essential information such as product expiration dates, lot numbers, and recall notifications, leaving hospitals exposed to financial losses and potential harm to patients.

These shortcomings can lead to substantial financial waste and increase the risk of using unsafe products in patient care. An audit often reveals that simply knowing what was logged in and out is not the same as knowing what is truly available and safe for use—a crucial distinction in healthcare inventory management.

Transitioning from Inventory Management to Inventory Control

To fully optimize healthcare supply chains and mitigate risks, hospitals need to enhance their inventory management systems with robust inventory control measures. Traditional methods like manual counts by clinical or materials staff are time-consuming, costly, and prone to errors. Moreover, these methods do not capture critical data, such as recalls and expiration dates, limiting their effectiveness in safeguarding patient safety and financial resources.

The Role of Unique Device Identification (UDI) in Modern Healthcare Inventory Control

Digital tools, like SxanPro, are now available to bridge these gaps. Implementing Unique Device Identifiers (UDIs) on medical devices enables hospitals to achieve significant advances in inventory control. UDIs provide critical information such as lot numbers and expiration dates, allowing for more accurate tracking and control of inventory.

For example, a recent inventory control audit using SxanPro at a healthcare system in the Southwest U.S. demonstrated the power of UDI scanning. Hospital staff registered 60,000 items across three sites in just six days, uncovering:

• 1,112 expired items, which were promptly removed.
• 369 recalled items, linked to 17 different recalls, that were extracted from supply rooms.
• $107,000 in credits secured from manufacturers for recalled products.
• $413,768 worth of short-shelf-life devices transferred to other facilities with higher demand.
• $401,000 worth of unused items identified and removed from storage locations.

These figures highlight the significant waste and risk present in even the most efficiently run hospital systems. Without regular inventory control measures to identify expired and recalled items, these products could be mistakenly used in patient care, posing severe risks.

Enhancing Healthcare Inventory Systems with Comprehensive Controls

The findings from hospitals using traditional inventory management systems underscore the need for supplementary controls to address these gaps. An effective inventory control system should:

• Identify expired and recalled products and direct staff to their exact locations.
• Provide actionable insights to adjust PAR levels and stop auto-replenishment of low-use products.
• Facilitate the return of products to manufacturers or their transfer within the health system.
• Enhance inventory safety, reduce financial waste, and improve patient safety.

Conclusion: Optimizing Healthcare Inventory Management for Better Outcomes

While traditional inventory management systems are vital, they must be complemented by comprehensive inventory controls to reduce risk and free up financial resources. These resources can then be redirected to initiatives that directly enhance patient care, ultimately optimizing both operational efficiency and patient outcomes in healthcare.