Health Systems Need More Insight Into Inventory, Supply Chain

In the wake of the Covid-19 pandemic, medical device supply chains are one of the top priorities for health system leaders. Amid supply chain disruptions during the pandemic, hospitals scrambled to find enough devices to keep up with unprecedented demand. The global crisis revealed gaps in standard operating procedures for how the healthcare industry manages supply chains to keep medical devices functioning. Now, while many supply chain issues linger, health systems also face surging costs at a time when operating margins are tighter than ever.

Working with a vendor that can closely manage a health system’s clinical assets and establish a centralized supply chain will also help mitigate inflationary pressures and supply chain issues. Established sourcing relationships, combined with a deep understanding of a health system’s inventory and its use, will make supplies and devices more accessible—despite disruptions in the global supply chain or increasing costs.

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Quality parts from a reputable vendor can also reduce equipment downtime. A faulty part might last only for a matter of weeks or months, while a properly vetted part may last years. A health system could find itself replacing a part repeatedly and disrupting patient care with unexpected equipment downtime. A comprehensive management system allows a health system to anticipate when a part will need to be replaced or serviced well in advance.

Many hospitals report they still struggle to find supplies they need, with devices and equipment on back order. Some hospitals have as much as eight times more medical devices and supplies on back order than in 2019, according to a Modern Healthcare report.

The first step in creating this process is to establish a comprehensive inventory of a health system’s equipment. Many hospitals don’t have an accurate account of what equipment they own; TRIMEDX has found inventory inaccuracies within health systems can be as high as 40%. A comprehensive clinical-asset management system will alleviate this and provide quality data, such as where a device is located, how often it’s used, and when it will need to be serviced or replaced.

Published: Wednesday, October 4, 2023 – 12:02

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Using quality, validated parts protects the huge capital investment a health system makes in its devices. If a health system isn’t using proper parts, it will likely have to replace its devices sooner.

Health systems with accurate data and analytics will be able to make better ordering and stocking decisions in advance, making them less reliant on disrupted supply chains and less exposed to rising costs.

A centralized supply chain ensures access to devices and parts

A comprehensive management plan also guards against hidden costs. Not only do health systems frequently lack visibility into their inventory, but they also are often unaware of how they’re being charged by suppliers and outside vendors. Sometimes hospitals will find they’re paying multiple vendors to service the same device. If clinical engineering and supply-chain management teams are working in lockstep, this type of unnecessary expense can be avoided. In addition, a reliable partner can monitor price increases from vendors and seek alternative sources if necessary.

Be prepared for whatever supply chain or pricing issues come next

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Quality Digest

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Without a centralized supply chain team, hospitals sometimes rely on technicians to source devices or parts themselves. This can be especially challenging when prices are rising or supply chains break down.

If a health system takes a holistic approach to managing assets, it will be better prepared for whatever supply chain or price challenges arise in the future. Relying on a dependable partner that has unique data and analytics, supply chain depth, and buying power will help protect a health system against the unexpected.