MHS

OPTIMIZE | Clinical Inventory Management

The third step of the OPTIC^SM solution focuses on establishing optimal inventory levels. MHS expert consulting helps hospitals take a closer look at their clinical supply process to further reduce inventory expense (10 – 30 percent). With laser focus on the clinical supply chain, MHS can unlock significant savings while improving operational efficiency enabling you to:

• Leverage existing information technology
• Analyze data and develop process adjustments        
• Maintain inputs and controls Identification of expired items
• Build a data feedback loop for continual optimization

Leverage Technology

Utilizing the latest mobile technology by @Par, MHS is able to help healthcare organizations gain control of their inventory by automating their supply chain operations, reducing inventory costs and improving workflow efficiency.

Leveraging “Approximate Perpetual Inventory” and Improve Process Flow

• Handheld devices collect discreet inventory demand by item, by PAR location
• Downloads generate storeroom pick tickets and consolidated vendor purchase requisitions
• Replenishments picked and delivered directly to PAR location
• Point-of-use demand history provides “discreet” usage detail by SKU and location
• Data driven SKU velocity analysis driving PAR level adjustments, valuation, and spend by location    
• Feedback is fast, reliable and systemic

Achieve Advanced Inventory Tracking and More Accurate Patient Chargeback

• Procedure-driven “bill of material” for key consumables
• Use OR schedule as Master Production Schedule to generate future demand
• Match future SKU demand with PAR levels and inventory to identify needs
• Expedite projected supply shortages prior to demand
• Use actual history to “back-flush” demand

Focus Areas

With years of hospital and IT management experience, MHS also offers process mapping, analysis and consulting, helping hospitals enhance how they manage their storage space, vendors and consignment items. Expert clinical supply chain consulting and tailored process-improvement support are available across focus areas, including:

• High level strategic planning
• Clinical Supply Chain modeling and mapping
• Information Technology capabilities assessments
• Savings opportunity assessments
• Inventory right-sizing
• Vendor Base management
• System implementation strategy and planning
• Turn-key outsourcing

The frequent occurrence of inventory mistakes in clinical areas equals extra expense for hospitals. Below is a list of the most common inventory pitfalls:

• Storing items in multiple locations (over-ordering)
• Expired items on shelves (patient risk)
• Untracked vendor returns (missed rebates and credits)
• Unmanaged consigned items (increased liability)
• Unreliable utilization reporting (excess inventory)
• Clinicians managing inventory (distraction from clinical duties)

Maximize ROI

MHS experts leverage best practices to provide customized solutions that maximize your ROI.

ROI	ONE TIME	ON-GOING
Inventory Reduction - Typically 15% - 25%	X
Expired Product Identification & Tracking		X
Reducing Inbound (Expedited) Freight Costs		X
Staffing Re-Allocations		X
Procurement
Contract compliance (price)		X
Rebate Tracking		X
Product Standardization		X
Conversion to VMI / Consignment Inventory management	X
Supplier Base Management		X
Prompt Payment Discount		X

MHS now provides its clients with high-level inventory reports quickly through one secure, web-based application to deliver information to decision-makers who rely on accurate, current data. The portal's interactive analytics feature makes it possible to find any individual item or group of items from a manufacturer, area or based on a description with multiple search criteria to search and sort across any attribute in the clinical inventory data.

By utilizing MHS Inventory Reports, healthcare organizations are able to indentify numerous savings opportunities, including “High Dollar” inventory, expired product valuation, items stocked in multiple locations, pricing history (year-over-year change), as well as consolidation inventory reconciliation, items with no recent purchase history and items on shelves but not in Item Master. MHS Data provides insight into stockpiling trends, number of turns, overall inventory value by clinical area (benchmark to industry), supplier dependencies, consolidation opportunities (greater volume discounts), standardization opportunities (error-free purchasing/billing), and comparison across facilities.

The MHS Online Portal for accessing and generating analytics takes the guess work out of clinical supply ordering and managing, and allows doctors and nurses to focus on their individual responsibilities. In addition, hospitals gain the opportunity to increase their efficiency and profits, and reduce unnecessary spending once and for all.