Healthcare Tech Implementation and the Supply Chain

One of the biggest challenges in the healthcare industry is reducing operating costs, and one area of opportunity for cost savings is through the supply chain.

In part two of our interview with Jean-Claude Saghbini, Chief Technology Officer at Wolters Kluwer Health (and formerly of Cardinal Health), we focus on technology implementation in the healthcare supply chain. Be sure to check out part one of our interview with Saghbini.

Saghbini explains that although the push to utilize RFID and other inventory management technology initially came from early adopters, he is coming to find that the implementation of such resources is becoming necessary to manage all healthcare networks as they continue to grow.

He finds that one of the key benefits realized by hospitals investing in new technology is significant cost savings via inventory reduction.

Oftentimes, the reduction in inventory can be as high as 20-25%, which translates to millions of dollars. He also notes a decrease in expiration rates, better product tracking to patients, and an increase in patient safety resulting from enhanced technology utilization.

All of these factors can add up to a 150-300% return on investment annually, not just for hospitals, but for device manufacturers as well.

Saghbini also talks about the benefit of RFID’s ability to integrate data across an entire healthcare network (for example, electronic medical records and hospitals’ material management systems).

He is also exploring ways to leverage RFID in ways that allow communication with near-field communication in patients’ cell phones.

If the two similar technologies are effectively integrated, it would allow the healthcare supply chain to be tracked all the way to the consumer.

Read more or view a related video in the OLIN Business School blog.