Efficiencies in Supply Management:

Electrophysiology LabAnn Burton, Conrad Kozak,Sabrina

Olsen, Michael Uribe, Roger Russell, John Shea, and Michael Zima

Opportunity Statement

Inventory management for the EP lab was a manual process. This resulted in excess supply inventory, multiple brands and types of catheters, outdated supplies, and missed patient charges. In May 2002, inventory reached $1.4 million.

Project Goals: Implement automated just in time inventory process

Achieve total inventory value of $400,000

Standardize physician practice for catheter selection

Streamline process for patient charges

Most Likely CausesManual inventory process

Bulk purchase of suppliesPotential for outdated suppliesPotential for staff errorTime consuming process for vendor purchase orders

Manual charge entry processDelayed LUCI entryPotential for staff error

Variation in physician practice Multiple catheter choices

Solutions Implemented

Inventory of suppliesWorked with Purchasing & Accounting

Reviewed mismatched revenue/expensesCreated unique chargemaster guides for each supply and assigned costs

Limited Vendors Piloted Omnicell to manage inventory in October 2002Implemented new processes for Inventory/Charge Management and Vendor Walk in Supplies using ScannersExpanded Omnicell use in January 2004 to create patient procedure charges immediately following the procedure

Inventory/Charge Management Process

P a tie n t C h arg e P os te d O n D TA R T HE N ex t D ay

P a tien t C ha rg ed fo r S u pp ly in S M S

P ro d uc t R es to cke d In O m n ice ll

R e c ieve R eo rd e re d Item s T he N ex t D ay

L a w so n O rd ers n ew item s to b e re p la ced

S u p p ly D eb ited from L aw son

Ite m R em oved a nd B u tto n P u sh ed

O m nice ll S to ck In E P L A B

Walk In Item Process

P a tien t C ha rg ed fo r D e vice In S M S P u rch a se O rde r C re a te d In L aw sonA n d A u to F axe d T O V en d or

Ite m S can n ed In to O m nice llU s in g B a r C o d es

Ite m is im p la n ted in P a tie n t

P a ce m a ke r O r D e fib rilla to rB ro ug h t in Fro m V en d or

Total Inventory Value: Goal is $400,000

$1,112,164 $1,412,164

$828,000

$595,000

$500,000Target: $400,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

January 02 May 02 June 02 June 03 January 04

Null Transactions: Goal is 2.5%

4.9%5.4%4.7%

6.0%

11.7%

12.9%

17.7%

20.4%

Target: 2.5%

0%

5%

10%

15%

20%

25%

Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04

Analysis

Reductions

Enhanced understanding of use of supplies

Allows for review of best practice by physicians for catheter selection

Improved budget process

Setting stage to implement process in other areas of hospital

Recommendations & Next Steps

Adjust par levels to achieve $400,000 inventory goal and reduce days of supply on hand

Ongoing analysis of supply use for recommended best practice