GUIDE TO LIFECYCLE MANAGEMENT

Managing a robust and effective lifecycle management and compliance program starts with quality data and incorporates long-term organizational planning. Here are some keys to effectively increasing margins while improving organizational efficiency as a part of your healthcare program.

CHALLENGES IN HEALTHCARE

The US Bureau of Labor Statistics reported price indexes for medical equipment and supplies manufacturing were significantly higher than in previous years. The latest price index was up to a record high of 4.2% compared to a year ago. The rising cost of materials such as metals, plastics and chemicals, is driving production costs. Prices of raw materials for medical devices have skyrocketed in the past two years. Many medical device companies are dealing with shortages of semiconductors and other critical components. The medical sector has been facing a significant rise in transport costs and longer and more unpredictable delivery times.

Medical companies have not yet passed the extra costs on to hospitals.

In addition to the inefficiency of the process, healthcare organizations often make purchasing and equipment lifecycle decisions that are reactive instead of proactive – resulting in unnecessary spending and lost revenue. Healthcare organizations often do not realize they may need an industry-specific medical equipment disposition and end-of-lifecycle revenue planning tool to reduce these costs and operate productively.

Other Articles and Resources from reLink Medical: Mitigating Risk, Liability & Improper Management of Used Medical Equipment To Dispose or Not to Dispose? That Is the Medical Equipment Question.

How can your healthcare organization effectively manage the lifecycle of your equipment? Consider these tips:

DEFINE ORGANIZATIONAL GOALS AND STANDARDS

Lifecycle compliance will most certainly mean different things to different departments of each hospital. In addition, lifecycle management is different between regional and national healthcare organizations, as well. Every organization is different, but one thing is standard: from a lifecycle management perspective, all users are concerned with the financial implications that medical equipment, disposition, and capital purchasing have on an organization.

Some of your organization’s specific challenges may include: ? Inventory management ? Specification and manufacture dates ? Purchasing new vs. refurbished equipment ? Fleet size and logistics ? Replacement cost/phases

USE ACCURATE AND THOROUGH DATA MANAGEMENT

When managing actionable data points for hospitals, healthcare organizations, and health groups, data is often available in many areas. Your organization can carefully analyze each of these pieces of the lifecycle and the factors that affect it. How is your specific organization managing out-of-service and end-of-life equipment? Can you buy refurbished – or does new equipment save money throughout the life of the medical device? What is the 5, 7, or 10-year and “forever” plan for the logistics and lifecycle of equipment? Does your organization have multiple plans in place, or just one single plan? How much buy-in do you have from Finance and Administrative or other decision-makers within your organization?

GATHER INTEL AND DATA POINTS

The biggest part of the decision-making process is gathering good, actionable data. When gathering data, draw from various sources to make the best lifecycle decisions. Popular touchpoints include clinicians, clinical staff, biomedical engineering, IT, facilities, construction partners, vendors, and finance. Start with an analysis of your current medical equipment assets and inventory. Do you have a maintenance history of specific groups or pieces of older equipment? Carefully look at product specs, installation requirements and gather new and refurbished pricing data from a wide range of suppliers and vendors, as well. When talking with our partners and biomedical engineering contacts, the team at reLink Medical has found that the perspective on compliance, lifecycle management and disposition is usually up to individual hospitals and healthcare groups.

HOLISTIC LIFECYCLE MANAGEMENT

Compliance and Lifecycle Management is an intensive, never-ending process – and involves setting priorities by analyzing tangible data, involving key decision makers and forming structured plans for cycling out older medical equipment. Educated purchasing decisions and planning for disposal or sale of used equipment can go a long way in helping the process – and the more standardized your organization is, the better off you will be from a holistic and compliance perspective. Contact reLink Medical today to start a conversation about how we might be able assist your organization with an updated solution set and a fresh look at your current compliance programs.