Hospital Implantable Device Supply Chain Fraught with Deficiencies

These are the latest findings of Global Healthcare Exchange (GHX, Louisville, CO, USA), an international healthcare technology company.

The GHX survey of hospital senior executives shows that too many US hospitals find themselves stalled at a crossroads, struggling to embrace business-focused technologies and best practices. Key findings of the survey show 79% of respondents say keeping supply chain costs down is important to addressing key financial challenges, such as a decline in profit margins and shrinking reimbursements from government and private payers. But 78% reported hospitals are playing catch-up in terms of implementing effective supply chain technology solutions; in fact, 18% say they’re still stuck in the “Stone Age”—dramatically lagging behind where they could and should be.

Nearly two in three executives “strongly agree/agree” that their hospital lacks real-time reports (62%) and advanced modeling techniques for informed decision-making (65%) when it comes to the implantable medical device supply chain, making the streamlining of delivery of care in their hospital an even more significant hurdle. Additionally, 70% of respondents say excess clinical time spent on inventory replenishment is a “very” or “somewhat significant” challenge to their hospital’s operating room. Almost half of respondents (45%) agreed there is a lack of accurate implantable medical device supply-chain reports.

Especially alarming is the role the supply chain plays in adverse impacts on efficiency and cost savings in the OR; 55% of respondents said that surgical procedure delays due to sales reps ordering medical-surgical devices are a significant challenge. Moreover, 53% said staff ability to locate medical-surgical supplies when needed is challenging. Most concerning is that despite the fact that 74% of respondents reported that their hospital has a system that allows them to track devices that are implanted in specific patients, nearly half admitted it would be difficult to track patients with implantable devices if there was a recall on a particular device.

“Implantable devices are estimated to account for approximately USD 50 billion as a market segment. Lack of visibility and control over these devices cost the healthcare industry an estimated USD 5 billion per year from inefficient manual processes, and lost, expired, and wasted product,” said Bruce Johnson, president and CEO of GHX. “Until suppliers and providers fully embrace technology to streamline processes and reduce waste, our nation’s healthcare system will never be able to lower costs for consumers in any meaningful way.”

The online survey was conducted in December 2013 by KRC Research (Washington DC, USA), which polled 75 senior executives within hospitals larger than 125 licensed beds who have decision-making authority or influence related to the purchase and management of implantable medical devices in the OR. 

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