Healthcare networks often include a number of medical centers, hospitals, and other offices, each of which can go through a vast amount of inventory. In order to stay ahead, facilities may overestimate inventory needs in order to avoid stock-outs. Too much inventory can quickly tie up cash flow, preventing other improvements. Rethink healthcare inventory management by deploying better technology.
According to “Hospitals Adopting Supply-Chain Technology To Cut Inventory Costs,” posted on iHealthBeat.org, an increasing number of healthcare networks are facing a possible loss of revenue under the new Affordable Care Act (ACA) system. With increased regulations and budget cuts, hospitals are turning to technology to gain control over business operations, including complicated inventory management. Radio frequency identification (RFID) and barcodes can cut down the time needed to keep track of inventory as well as provide reliable inventory counts. Ascension Health has chosen a centralized solution that uses barcodes and notifies managers when a product has been used. Another network, BJC HealthCare, is using RFID to monitor medical devices as they are being used or expire. By centralizing this data, other facilities within the network can lend or transfer supplies, cutting down on the volume of inventory that may be maintained. BJC HealthCare reported that this new system has reduced the amount of stock by 23%, which can free up cash flow.
Today’s business solutions, such as enterprise resource planning (ERP) solutions, are tailored for the unique needs of the healthcare industry. A robust solution, such as Microsoft Dynamics GP, offers strong financial management features, supply chain and inventory management, user friendly dashboards, and business intelligence that can provide additional insight into business operations. In addition to tracking inventory at multiple locations, you can use Microsoft Dynamics GP to manage regulatory compliance data, reduce paper-based processes, and reduce other manual processes including duplicate data-entry. Improving productivity and gaining control over inventory and spending can reduce the pressure many healthcare networks are feeling today.
Save time, save money, and streamline compliance activities by replacing outdated systems with more modern solutions. Contact The Resource Group to learn more about using ERP to target inventory and other operations to control costs and protect thinning profit margins.
By The Resource Group, a Microsoft Dynamics GP Partner out of Washington