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RFID and the Connected Hospital

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RFID and the Connected Hospital

  1. 1. Featuring: September 2013 RFID and the Connected Hospital
  2. 2. September 2013 Today’s Presenters & Agenda Tracy Hillstrom Sr. Product Marketing Manager Impinj, Inc. Joe Pleshek President & CEO Terso Solutions, Inc. Impinj • Healthcare Provider Woes • The Connected Hospital • RFID Technology • About Impinj Terso Solutions • Introduction to Terso Solutions • Key Challenges in Healthcare • How Can RFID Help? • What Is the ROI? Question & Answer Session
  3. 3. September 2013 Current levels of revenue and profit are not sustainable Health spending in the US has grown nearly 5 times that of GDP since 1960.1 Delivery of quality care is hindered by overloaded humans “We found that 25% of clinical staff’s time is spent looking for things, and 10-15% of their time in the OR is spent looking for instruments.”2 Inventories have grown out of control “…the healthcare industry has half a trillion dollars tied up in inventory.”2 “Product recalls, now occur about 15 times per week in medical devices and 20 times per week in pharmaceuticals in the U.S. alone”2 Healthcare Provider Woes 1. March 12, 2013, Time Magazine, “The Bitter Pill” 2. October, 2012, McKinsey & Company, “Strength in unity: The promise of global standards in healthcare.”
  4. 4. September 2013 The Connected Hospital • The Connected Hospital allows for automated data collection and real-time access to information at point-of-service – Asset Tracking, Surgical Instrument Tracking – Patient Workflow Optimization – Inventory Optimization – Pharmacy – Compliance (5 Rights, Hygiene) – Patient Safety (infants, eldercare) – Temperature Monitoring – Equipment Maintenance • Key requirements – Data collection without human intervention – Item identification
  5. 5. September 2013 RFID Technology
  6. 6. September 2013 About Impinj, Inc. Leading provider of UHF RFID solutions for identifying, locating, and authenticating items • Innovative product portfolio – Tag chips – Reader chips – Readers & antennas • Enabling numerous industries – Retail – Pharmaceutical – Food and beverage – Consumer electronics – Manufacturing – Logistics
  7. 7. September 2013 Terso Background Terso’s inventory management solution integrates RFID enabled cabinets, refrigerators, and freezers with a RFID data platform and 24/7 support services to effectively monitor product inventory any time of the day or night. • Formed in 2005 by Promega • Headquartered in Madison, Wisconsin • European facility in Mannheim, Germany Commercially-proven • Fifteen patents secured for Terso RFID solutions • 12 years of continuous use • Over 1,400 implementations worldwide • Over 12,000,000 operational hours
  8. 8. September 2013 RFID Solutions for Healthcare and Life Sciences RFID Storage RFID Store Rooms Platforms/Applications
  9. 9. September 2013 How the Solution Works Place Internet enabled RFID cabinet at the point of use Pre-authorized users access the cabinet with RFID cards Users add and/or remove RFID tagged inventory from the cabinet Access the web-based, system for global visibility, 24/7 operation, and remote access to individual units
  10. 10. September 2013 Over 1,400 RFID Implementations World-wide
  11. 11. September 2013 Key Drivers in Healthcare • Aging population • Expenditures increase significantly with age • Customization in treatment – innovation is driving costs up • Decreasing reimbursement • Hospital employed MD’s • Healthcare legislation • Regulatory requirements 11
  12. 12. September 2013 Key Drivers in Healthcare • Strong growth in emerging markets • Increasing supply chain complexity • Increased need for cold chain storage and transportation • Growing need to capture data tying patient, procedure and outcome together 12
  13. 13. September 2013 Supply Chain Challenges in Healthcare • Significant amount of high value inventory in the healthcare supply chain (stock rooms, trunk stock, etc.) • 7 – 10% inventory expiration/obsolescence rates/year • Hospital staff spend 10 – 30% of their time tracking inventory • Lost inventory / shrinkage – items are not property charged to the patient • Little “point of use” data is shared between hospitals and providers in real time • Regulator audits are increasing creating additional documentation and training 13 Source data: 2008 Gartner/AMR, primary market research with multiple MD&D companies and Medical Device Supply Chain Council
  14. 14. September 2013 Key Needs Providers • Visibility and control of product purchases • Improved charge capture of products used in procedures • Reduced labor managing inventory • Consignment inventory • Robust compliance practices Suppliers • Demand visibility as “real time” as possible • Lower inventory levels leading to less obsolescence • Reduced labor managing inventory • New supply chain and service models • Robust compliance practices
  15. 15. September 2013 Case Study - 15 Business Challenge A large teaching hospital and primary care center needed a system to store, track, and manage the use of high cost items, such as heart valves. Their goal was to improve workflow by eliminating manual transactions for heart valve inventory, reduce operating costs, and improve patient safety. Solution Implemented Terso's RFID enabled inventory management solution to: • Provide complete visibility to the heart valves at any time • Ensure patient safety by sending proactive alerts for products close to expiration • Acknowledge and monitor all products without requiring a direct line of sight Results • Increased time spent on patient care • Reduced amount of time nurses spent tracking movement of heart valves • Doctors and nurses more prepared for scheduled cases • Reduced number of lost heart valves • Ensured patients are properly charged for products consumed
  16. 16. September 2013 Case Study - 16 Business Challenge A leading medical device company needs a solution to automate the inventory reconciliation process for human tissue implants. To meet regulatory compliance the company would manually record inventory at hospitals and distributors each month consuming valuable time. Solution • Implemented RFID enabled inventory management solution • Automatically record the activity of each tissue implant and temperature • Provide real-time visibility of current inventory levels • Send proactive alerts for products close to expiration Results • Eliminated 15,000 hours reconciliation time per year • Improved regulatory compliance with automated temperatures • Increased revenue from accounts with this value added service • RFID cabinets enabled on-line replenishment processing
  17. 17. September 2013 Case Study - 17 Business Challenge A leading provider of software to hospitals use to track valuable inventory including all implantable devices and tissue graphs • The software enables hospitals to optimize inventory levels and meet regulatory compliance requirements • To move inventory from one location to another (central supply to operating room) users have to manually transfer the item Solution Integrated Terso’s RFID enabled enclosures including -80 degree freezers into Champion software via Terso’s RFID data platform Results • Reduced manual inventory tracking by over 40% • Reduced data entry errors into the system • More timely point-of-use data for inventory is integrated with EMR systems
  18. 18. September 2013 Case Study – Stowers Institute for Medical Research • Eliminated the need for data entry and reduced the checkout time to mere seconds rather than minutes. Average total checkout time for a researcher is 15 seconds. • 70% reduction in shrinkage and expired product write offs. • Eliminated hundreds of hours of work in tracking down missing products and reconciling missing inventory. • Gave the researchers more hands-on opportunities to consider new products Business Problem • Lack of customer service from solution provider. Current system lacked functionality they require • System able to be ‘tricked’ once opened; no item level tracking • Many manual processes to reconcile transactions • Significant shrinkage; more than 6 items per week Results Solution • RFID enabled Smart Stockroom with self check-out • Doorway RFID portals integrated with video cameras ensure all products are tracked entering and leaving the stockroom
  19. 19. September 2013 Jetstream Devices Device Management Inventory Applications Data Services ERP
  20. 20. September 2013 What Can We Conclude? RFID can help enable the connected hospital! • Bring “real time” visibility to high value inventory • Connect product usage to patient record via integrated systems • Reduce labor costs by automating inventory management • Enhance patient safety and regulatory compliance • Track consignment and better manage vendor trunk stock • Enable improved collaboration between providers and suppliers • Data analytics • Inventory optimization and control 20 RFID is delivering proven benefits in healthcare today and will be an enabling technology for healthcare transformation in the future.
  21. 21. September 2013 Questions & Answers Joe Pleshek President and CEO joe.pleshek@tersosolutions.com Tracy Hillstrom Sr. Product Marketing Manager tracy.hillstrom@impinj.com