Automate Your Implant Supply Chain for Reduced Spend and Significant ROI
Originally Broadcast: February 25 at 1 PM EST
If an investment could yield your hospital a 240% return, would you make the investment? While the numbers are illustrative, the gains to be made through optimizing your hospital’s implant supply can be that significant. Attend this webinar to learn the keys to making supply chain optimization easy so it can drive the biggest results for your bottom line. Gain insight into the right mix of software, accurate demand data, and chain of custody tracking.
We’ll discuss the latest advancements in technology, like barcode scanning technology, which establishes a two-way data integration with your Electronic Hospital Record (EHR) and InVita’s Bill-Only solution, and RFID-enabled security to protect your valuable inventory. Every step along the product lifecycle, from procurement to warranty claims, is digital (paper-free) and accurate. Beyond implants, we’ll share best practices in managing explants, aka implant devices that have been removed for expiration, failure, or other reasons. Implant spend represents about 30% of a hospital’s budget but with full lifecycle management, we’ve seen that reduced significantly. This is a webinar hospital leaders, clinicians and supply chain managers won’t want to miss.
Steve Coloia VP of Sales, Central
Paul Cicciarelli Senior Product Specialist good afternoon and thank you for joining us for today's webinar on automating your implant supply chain. Before we begin, I'd like to invite you to submit questions for the presenters at any time during the presentation by using the chat feature at the bottom of the screen. Your questions will be addressed at the end of the presentation to ensure that we get through the material. With that, let's begin. Our presenters today will be Steve Coll Oia and Paul Cinderelly. Steve Coll lawyer is indeed as vice president of sales for the South region. Steve has over 20 years of sales and sales leadership experience in the Web based software and software. As a service sector, he has launched and led several sales teams in the Health Care I t software vertical for the past 10 plus years, Paul Ciccarelli is a senior product specialist at Indy to health care, and he has over 20 years of sales and product leadership experience in the health care device and software industries. I'm pleased to now hand things over to Steve Koya to begin our discussion. Steve, Take it away. Thank you, Peter and behalf on behalf of the health care team. We want to thank you for being with us today and thank you for all you do for healthcare, especially during this pandemic. As a foundation for our discussion and to provide insight into India's expertise in the space, I'd like to give you a brief overview of our company. For more information. Please check out our website in vita health dot com as we've expanded our software solutions and resources for tissue implants, X plants and warranty claims, as many of you know. And indeed it delivers health care technologies to complex medical environments to make processes safer, more compliant and cost effective with over 800 product installations are cutting edge software manages the full life cycle of blood, plasma tissue and implants. Our products are used by more than 600 customers, including blood and plasma centers, hospitals and health systems. They stand multiple hospital departments, including supply chain O R. Cath labs, surgery centers and wound care centers. Our diverse customer base provides us with insight into the unique operational challenges, so we can continue to roll out the new innovations they expect and need. Now let's dive into today's topic on automating the implant supply chain. We'll start with the question that we've asked before. If an investment could yield your hospital a 240% return, would you make that investment? On the surface? The answer to this question seems obvious. But when it's considered with the purview of supply chain management, automated processes, integrated data and other factors, the answer can quickly become a bit less clear. Today we'll add back some clarity, Phil. First, we'll cover the implant component of supply chain optimization and the software and technologies that are available today. To make it easy, we'll discuss the automation of processes and workflows that enable optimization and drive. The biggest results for hospitals didn't deeper. We'll look at the factors that make automation possible by assembling the right mix of software integrations, accurate demand data and chain of custody tracking. With the elements in place, getting a significant return on the hospital's investment is very achievable. We'll be getting at the top implant supply chain optimization it dependent upon the fluid movement of information data, moving freely within a single platform and providing all stakeholders with the real time status of inventory relative to the day's procedures. transfers and receipts of new products within this paper free environment, product monitoring, workflows and chain of custody. Tracking our automated for greater cost control the right mix of software, data and tracking are not new concepts, but they have evolved largely, largely because of the ability to connect data through integrations, in short, connecting information between disparate databases at a level that has not been done before. For Evita, that means connecting the entire implant lifecycle. So supply Chain and other stakeholders have a complete view of the factors that can negatively or positively impact cost compliance or patient care. We'll get back to this, but it's important to recognize the value of having visibility across the entire inter plant lifestyle. One innovation that has evolved in recent years is barcode scanning technology. One new benefit is that barcode scanning establishes a two way integration between multiple data points and then he does built only solution. This integration enables the automated automation of documenting, submitting and reconciling supplier direct sales order forms and purchase order requests. This integration saves time by sharing data with electronic health records each ours materials management systems, MM s device manufacturer representatives and the global Good ID database, so orders are received, validated and approved quickly. Another integration is with R F I D enabled storage cabinets, which securely protect valuable inventory from tissue and implants to covid 19 vaccines integrated with Evita software. Every step along the product lifecycle from procurement to usage is monitored and tracked digitally to eliminate manual air and the need for repetitive data entry. Both barcode scanning and R F. I D technologies capture information that is vital to optimizing the implant supply chain, workflow, efficiency, compliance and, ultimately, patient safety. Considering that implants represent, on average, 30% of the hospital total supply chain spend, adopting an automated citizen that manages the full implant life cycle is where the largest gains can be realized. Regardless of the goal and size of a hospital or health system. Implementing software that automates process processes and workflows can bring notable changes to hospitals. Bottom line. We'll discuss this more in a few minutes before we do. Let's quickly interview the project scope that makes managing the implant life cycle so challenging. According to data from the Centers for Disease Control and Prevention and Mayo Clinic, Americans receive about 370,000 cardiac pacemakers and about a million total hip and knee replacements a year. Experts estimate that 7.2 Americans are living with joint implants, a number that will continue to grow as the population ages. Medical implants include a tissue or medical device that is inserted into the body to replace the missing body part, support a damaged part or modify a body function. However, the potentially lifesaving benefits of implants comes at a hefty price in the US to spend. An implantable devices exceeded 36 billion in 2020 accounting for nearly 6% of the nation's total health care expenditure. Although implants comprise just one segment of the supply chain is expensive, products can account for more than 50% of the cost of the procedure and become a major financial dream if not closely managed. Nationwide, hospitals and suppliers lose up to $5 billion annually on implantable devices due to waste and ineffective supply chain processes, according to the Global Health care exchange. Another costly issue is managing and processing implants that have been recalled due to a malfunction or a low battery indicator. One independent investigation found more than 1.7 million injuries. Nearly 83,000 deaths are suspected of being linked to medical devices over the past 10 years. In the US alone during the same 10 year period, there are more than 26,700 devices we call in the U. S. According to the findings. When recalls happen, hospitals must comply with a host of reporting requirements. Often these include the pursuit of a A device warranty credit to cover the cost of a new device, as well as the surgery required to replace the defective one. Adding confusion and complication our federal regulations required by Medicare to reduce payment to a hospital for its replacement of an implanted device. These building reductions are required by the Centers for Medicare and Medicaid Services, regardless of whether the warranty credits were actually received or pursued by the hospital. And Venus Platform has functionality to connect the hospitals HR with the warranty terms of the patients device, For example, the software receives an explained case from the hospital Thr patient records system then calculates eligibility and remaining warranty based on the warranty terms for that device and the original implant date. That information is then reported by our system to a hospital administrator in the system to notify whether the hospital can keep those funds or if the credit needs to be returned to Medicare. This platform is a direct feeds from the FDA to provide immediate notification of recalls, including automatic mansion leveraging real time visibility of inventory in the supply chain. The software scans hospital inventory both current and historical for a match and will do so moving forward as the products are received and used in surgery. Since the data is automatically integrated into a patient's thr record, it's easy to identify individual patients affected by a recall. The fast efficient response to device recalls can help increase patient safety and decrease liability. Our platform makes it easy for hospitals to support their patient safety measures, recoup any warranty, credits their road and ensure compliance with federal guidelines, which will present prevent costly fines to keep. To continue this discussion, I'll now have things off the Paul and Venus resident expert on implant warranty claims and compliance. Take it away ball. Thanks, Steve. The most common reason for noncompliance is a breakdown in communication among the hospital departments handling the credits, which can include building compliance revenue cycle supply chain accounts payable and clinical departments processes that are all made harder with manual implant management and cumbersome workflows. Manually entering product codes into systems. And removing UD stickers from implants and affixing them to physical files can consume vast amounts of time. However, this lack of communication and disorganization associated with non compliance can come with a huge fine for health care systems, errors and device warranty, credit tracking and or failure to report them to Medicare can expose hospitals. Two audits by the Office of Inspector General or, more commonly referred to as the Big in November 16 2020 report by the Big found that 49% of the 6558 medical claims reviewed show that hospitals likely did not comply with Medicare requirements and the reporting manufacturer credits for recalled or prematurely failed cardiac medical devices. Other OIG audit reports found that there were significant penalties against hospitals and costs associated with warranty device claim noncompliance on average, $400,000. Because of the high cost of implantable medical devices and increasing scrutiny from CMS and the OIG, hospitals need to optimize their implant management processes for greater compliance, reduced waste and lower hospital spend. This is where device tracking becomes so important when hospitals are about to track medical devices across the health care system from point of receipt to point of care and beyond. Many of the previously mentioned challenges can be avoided, however. While implant tracking is key, it can also be a complicated one without the right tools. Over the years, barcode scanning technology has helped to alleviate many of the challenges hospitals face with implant and device management as they provide a way for staff to quickly scan inventory without the use of manual entry. Barcode scanning reads. A printed barcode decodes the data contained in the bar code and then sends the data electronically to a computer database in a desired location. As mentioned previously, These databases include critical information systems like an, E, H, R and M and MS, where hospitals can manage their inventory and create an important two way data integration within Vidas Bill only solution all to eliminate manual or redundant data entry, increase efficiency and ensure accuracy of information across the supply chain. One in Vita Hospital customer estimated savings of 5 to $10,000 each month on products that may have otherwise been expired. By using Vidas software to optimize its inventory, we have found that some databases have significantly reduced up to 90% the amount of time it takes to receive shipments and add implants to inventory while greatly improving data accuracy. Because the data is flowing directly from the supplier to the database, barcodes can be particularly valuable in managing HR systems to track patient information. A mobile point of care solution doesn't just lower costs. It also increases efficiency and patient safety. Nurses and staff can collect information from a patient's medical charts and confirm the right device is being used in procedure. Healthcare professionals can also update a patient's medical records, which will transfer to the hospital's database prior to becoming an invalid, a customer one hospital used to receive many implant errors from the HR. The hospital's tissue errors dropped to 1 to 2 tissue errors per week, if any, following the implementation of our software solution. Another key benefit, a barcode scanning technology, is its ability to streamline inventory management. Hospitals are often managing millions of dollars of assets at any given time, which makes inventory management a time consuming and tedious process. Additionally, healthcare environments are known for being fast paced and high stress, as clinicians and hospital staff are often responsible for caring for dozens of patients throughout the day and managing numerous procedures. In order to stay organized, health care providers must track their assets well and make sure they are in proper working condition at all times. Properly managed inventory ultimately means fewer medical airs, leading to better patient care and safety. By implementing a barcode system into inventory management, medical staff can keep track of materials, expedite the ordering process and, if needed, the recall process in terms of implants. As more and more health care practices convert to electronic medical records, barcode solutions can continue to eliminate manual data collection and allow all patient information to be easily and instantly collected and recorded electronically, further reducing a potential human air setting. The stage for barcode scanning to be used on an implantable medical devices came in 2000 and seven when the FDA established the unique device identification or you die system mandated by the U. S. Congress. UD is required to identify medical devices and to help hospitals and device manufacturers track their implants consistently, the unique numeric or alphanumeric identification code you t corresponds to key information about each medical device, including manufacturer, name and model number. The U D system has allowed health systems, hospitals, physicians, patients and manufacturers to clearly identify products that have been recalled, receive better data on implant performance and decrease the cost of procuring products and managing inventory. By standardizing the way implants are tracked and managed, hospitals have been able to better identify medical devices in their HR and other systems, create operational and clinical efficiencies and improvements and patient safety measures. However, while the FDA requires manufacturers to include you D barcodes on every device, label and package, the FDA doesn't require manufacturers to use a particular barcode carrier, which has led to a lack of UD standardization. This is probably the biggest challenge for hospitals, which is further compounded by a busy hospital environment, dispirit workflows, poor communication between departments and the use of air prone manual methods. While the technology has the ability to dramatically improve processes and patient safety systems are often conceived and implemented without an overall strategy and not all technology is created equal. I'll ask you to hold on to this thought for a moment. Because barcode scanning technology is just one part of our integrations towards supply chain optimization. Let's move on to our RFID enabled storage cabinets. Our feed, also known as radio frequency identification technology, uses electromagnetic fields to automatically identify and track tags attached to objects. It's technology that integrates with our software and automatically tracks inventory movement prior to point of use, providing real time visibility and improved inventory management. Key benefits of including our RFID enabled cabinets as part of the implant supply chain optimization strategy are implant retrieval. Time is significantly reduced from storage to the operating room. Product loss waste due to expiration and stock outs are minimized, inefficient reconciliation processes are eliminated and product security is maximized By integrating our feed enabled technology with our software, you can have a complete automation of chain of custody. One in Vida customer has realized immense annual savings while meeting strict compliance regulations and improving patient outcomes. This same customer, writing up two almost $200,000 per year and expired or missing tissue grafts prior to adopting our software, plus the feed storage solution over the years, and Vida has developed a number of software platforms that seamlessly integrate with manufacturers databases as well as E H R and Miss Systems to automate inventory receipt and chain of custody Tracking. Automating these processes help to reduce airs, optimize inventory, improve compliance and enhance supply chain performance software like invaders. Point of Care Barcode scanning can generate a simple barcode that can scan across to the hospitals. HR with a single scan. Healthcare staff can populate all the required implant inventory information, including product code, lot number, serial number, unique identifier and expiration date. Entire implant shipments can be added into inventory with one click, and it is automatically integrated into the HR, eliminating the need for multiple entries and saving valuable time for busy hospital staff. Our software also facilitates access to instructions for use or ifs, registrations, accreditation, temperature logs and expiration alerts. All changes that occur throughout the day. Update the inventory levels in real time and are visible across the supply chain. Mhm, indeed, a solution. Integrate with E H. R and major device manufacturers to automate the processes of identifying, submitting, tracking and applying warranty credits for explaining devices. This simplifies the warranty claims process by reducing confusion, streamlining workflows and increasing visibility, thus reducing the risk of an org audit. Heavy fines and damage to the organization's reputation on average in Vida solutions can help hospitals recapture 50,000 to 250,000 and potential warranty credits annually by automating the warranty claims process. The software can also reduce the time spent assessing and submitting warranty claims by up to 70%. Cut the time need to reconcile warranty credits by up to 80% and reduce the cost of waste due to expiration and loss by up to 70%. Customers interviewed also reported a 50% reduction in the risk of OI regulatory fines and a 100% reduction in the risk of multiplier fine. Additionally, warranty terms are already loaded into the customer database systems, immediately calculating the estimated warranty credits. The software can automatically identify credits that can be retained by the hospital via the 50% rule or from non Medicare claims, ensuring that the hospital and Medicare received all eligible credits. In addition, because the software is directly integrated with the manufacturers systems up to date claims, information is immediately accessible, a critical benefit in the event of an audit. Lastly, an automated receipt of approved credit information helps resolve patient accounts and ensure that there are no mystery credits to investigate before they can be applied. Awesome. Yes, yeah. Central to our discussion today and foundational to in Vidas innovations is the concept that data should be integrated and move freely, so stakeholders have current information at their fingertips in terms of implants. Data capture begins with the manufacturer supplier and has carried through in a single paper free environment through two delivery and receipt inventory. Point of views and beyond. Okay. Automated systems also provide unique visibility across the implant two x plant life cycle. With that full view comes an extraordinary amount of of knowledge for supply chain managers, in particular knowledge that can drive better purchasing and supplier contract negotiations, knowledge that can spot previously unseen opportunities for efficiency or cost reductions across the supply chain. We are also happy to share our latest white paper that expands on these points with all of you here, it will be emailed to you following the webinar. The white paper delves into enhanced software that provides implant. EXP PLANT LIFE CYCLE analytics, which help hospitals cut the cost of waste and supply chain inefficiencies to the greatest extent it covers how hospitals can realize cost savings across the full implant lifecycle with visibility. Connecting implants to explains, combined with the enterprise Usage and Analytics in Vida is excited to offer this new revolutionary look at the implant to explain life cycle so hospitals and health systems can reduce spend without sacrificing compliance or patient care quality. In fact, they'd be improving it. Our team is softly rolling these new capabilities out as our implementation calendar permits. If you'd like to learn more about the analytics made possible by our new platform, please reach out to steve dot ca loya at vida health dot com at any time. Okay, Now let's open the floor up for some of your questions. Well, thank you very much, gentlemen, for a very, very informative presentation. We have a handful of questions already in, and we encourage those of you who are watching the program today. If you've got other questions, please send them in as soon as you can, so we make sure we get your questions addressed. The first question. Paul is directed towards you, and it reads. How does your warranty tracker system? No. Which devices or dollars can be retained by our hospital rather than going back to Medicare. Okay, great. Um, there's actually two questions in there. Um, the first one. How do we determine which devices qualify? Um, well, we are able to receive a feed from your HR and all implanted ECs plant device procedures, um, and were able to match them against our database of known devices that carry manufacturer warranties and were able to identify them in that way and then bring them into the system. Um, once they're in the system, we're able to utilize the warranty terms that are associated with those identified devices. Um uh, that along with the date of original implant, um, we're able to make a determination of which of what is left on that warranty. And if it is a Medicare payer, if it would qualify for that 50% rule, and they would either be able to keep it or it would need to go back to Medicare. Well, thank you very much for that response, Paul. We appreciate it. There's another question. Actually, came in for you as well. It reads. We have challenges getting updates from manufacturers. How would your system help with that? Um well, this is something we commonly hear when we start working with customers. Um, one thing that we have a great benefit. Um, we partner with the major manufacturers. So we're getting information directly from them into our, uh, database. So the customer doesn't really need to reach out to the vendor. We're doing that for them through warranty tracker. Um, so that information that was hard to get where they would have to actually probably reach out, email or phone. Call the vendor for an update. We're getting those updates automatically into warranty tracker. Uh, there's also a very easy way to contact the vendor directly through the program. So if there was a question, um, it's sort of a one stop shop. They just could go into our application and, uh, be able to contact the vendor if if they didn't see the information that they were expecting. Thank you very much, sir. Um, Steve, the next question comes to you, and it reads. Reconciling our consignment inventory with our reps and suppliers is difficult Does your system make it easier to figure out how many consignment implants by manufacturer name are used? Yeah. Great question. Absolutely. So are you the eye tracker Solution Management tracks all implants, whether biologic or non biologic. Also all ownership types, whether those items are owned by the hospital consigned or even ones brought in by Rex Day of surgery. So, at any point through integrations with the hostels HR, a customer can pull report of any ownership type. If they want to see everything they used that was owned, they can pull that. They want to see items that were used that were consigned. They can pull that automatically as well. Also, if we integrate with the with the M M. I s, we can even tell you the cost of those consigned implants that were used So you can pull a report on a specific manufacturer, maybe have a specific threat coming into reconciliation. You can see all the items that were used, and you could actually see the cost. Meaning you should know what you owe that rep for those used items. As I mentioned earlier, we also tried building so that really difficult manual process of reconciling items used in a case that were brought in by rep. We automate that process as well. Make it very easy to reconcile with that sales order form and actually requisition of P o. So answer is yes. Yes. I don't believe wonderful. All right. Thank you for that. Paul. We're coming back to you real quick. The question is, we occasionally get checks in the mail with limited information. Do you think your system could help us apply the funds appropriately? Yeah, that's a great question. And and the answer is yes. Um, this is a common theme that we also hear that, um, when When the hospital does actually do a good job of, uh, sending out a warranty claim, um, and they receive a warranty credit, whether it's in a credit memo or a check. Um, there's typically there's very little information on that, that document on the check or credit memo. But the thing in warranty tractor that we're able to do because we have that integration with the manufacturer, they provide us, um, that credit memo and check information. Uh, and it's actually attached to that patient account information in warranty tracker. So if they were to receive a check, it would be very easy for them to say to match it up with that patient in warranty tracker because that information is tied directly to that patient account. Fantastic. Thank you for that. And Steve. Question back to you. We don't have a documented process in the o. R. Does envy to offer a workflow slash process assessment? Yeah. Yeah, absolutely. So we as we mentioned the beginning, we've worked with over 600 hospitals across the country, So we've gathered up a lot of best practices. Learned a lot about process. Um, so we're very happy to take a look at your process Now on the issue would implant the management side. We can certainly help. And often do we see this question a lot on the warranty credit side, where there may be a process in the cath lab for pacemakers and defibrillators, but not much of a process for identifying, submitting, tracking warranty credits on O R devices. So in that situation, especially, we can dive in. We can help analyze your process, I should say. Also, the software itself provides a nice blueprint to development process. You can show. You see the steps in the software and then sort of apply. Okay, who's going to do this step in the process? But absolutely. We can come in and do an evaluation and share best practices that we wanted with you over the course of implementing over 600 hospitals. Fantastic. Thank you for that. And we have another question. I'll direct this. Either of you. Whoever feels most comfortable answering it of the question reads. You said You get direct data from manufacturers. How do you handle contract prices and conditions that could be different for each medical system? I'll take that, Steve. Um, that's that's a really good question. Um, so the pricing, um, that we have in in the database, um, is unique to each of the health care systems. Um, the the information that the manufacturers would provide us would be based on their pricing they have with that particular healthcare system. Um, so we we wouldn't there wouldn't be any cross colonization. It would just basically be whatever experience or whatever pricing that vendor has with that particular healthcare system. That's the warranties are based off of off of those prices. So any of that calculation. Any of that information coming from the manufacturer is going to be based on those pos that are created between the health care system and that manufacturer. Thank you, Paul and Steve, for your informative answers to the questions that were posed by our viewers and thank you to our viewers for sending in those questions. We're now at the conclusion of our program. We'd like to take the time to thank you for your time and being here with us and for all that you do to support quality patient care. We wish all of you a happy and safe day. Good afternoon. Yeah, yeah, yeah, yeah Mhm. Mhm. Mm, yeah. Mhm, Mhm, Mhm Yeah, yeah, yeah Mhm. Mhm. Mm. Yeah, yeah, yeah No. Three, Yeah.