Implementing a Point of Use (POU) inventory management system in the Parkview Health medical surgical areas resulted in scanning compliance of approximately 70%. According to POU vendors, 70% is considered a benchmark, however, with $25 million of chargeable supplies passing through the POU system on an annual basis, settling for the industry standard of 70% compliance would mean leaving $7.5 million in potential charges on the table.
With support of senior leadership, Parkview Health developed a project team whose goal was to enhance the POU system to ultimately reach 90% compliance. The team collaborated with subject matter experts from supply chain, information services, revenue integrity and finance. The team identified multiple changes that could be implemented including building a custom database table, creating daily scanning reports detailing missed scans and charges, and building a dashboard so senior leadership could monitor performance monthly.
Parkview Health reached its compliance goal of 90% and exceeded $22 million in overall patient charges; $5.5 million of which would not have been possible without the efforts of this project. Process improvements included the development of a custom field in the software’s movement table to track recovered charges, as well as the creation of two daily automated reports to provide to nurse leaders (one to capture supplies that left the room without being scanned and the second to capture chargeable supplies that were scanned as general supplies instead of being attributed to a patient). In addition, a dashboard was built that would indicate compliance and charge capture by hospital for senior leaders to monitor and report on during their monthly organizational huddle meetings.
About Parkview Health
Parkview Health is northeast Indiana’s largest healthcare provider, consisting of eight hospitals and a physicians group with more than 500 providers. With more than 10,000 employees serving a population of 820,000, the not-for-profit health system’s mission is to improve the health and well-being of the communities it serves.