Murphy McGraw, senior director of product management at TRIMEDX, recently contributed an article to 24x7 Magazine about how RTLS technology can be leveraged to drive down capital and operational costs. The full article, as it appeared Aug. 6, 2024, is below.
Healthcare technology management (HTM) teams and clinicians need medical devices readily available for maintenance and use in patient care, but many modern health systems have a massive number of medical devices with low inventory visibility. This makes keeping track of devices extremely difficult and time-consuming. Real-time location systems (RTLS) provide a digital solution for streamlining this inventory management. While this is a major advantage for clinicians and BMETs, the benefits of RTLS go far beyond making devices more accessible.
RTLS technology can be leveraged to drive down capital and operational costs through more efficient medical equipment management. Health systems that properly use RTLS can reduce preventable equipment loss, reduce rental expenses, optimize capital planning, and mitigate cybersecurity risks—all while simultaneously supporting improvements in device availability and overall patient care experiences.
Minimize preventable equipment loss
Equipment loss is a significant cost burden for health systems each year. Health systems often struggle with visibility into their own inventory, making it hard to keep track of medical devices and equipment—especially when those items can freely move around the hospital. Mobile devices, which make up a large part of a hospital’s equipment inventory, frequently go missing if they are not properly tracked. Research shows 10-20% of a hospital’s mobile assets are lost or stolen each year. Telemetry systems could accidentally get mixed up in hospital linens and destroyed in the laundry; infusion pumps or patient monitors could end up on an ambulance and be transported to another hospital; or someone could steal a device to sell online. This quickly adds up to an expensive problem when the average cost of replacing a mobile device is $3,000. Health systems are forced to deploy a large amount of capital each year to replace these items, at a time when they are already dealing with extremely slim operating margins.
An RTLS system can increase visibility and accountability within mobile equipment management. Health systems can use the technology to enable custom alerts when devices pass certain thresholds like entryways, ambulance bays, laundry rooms, or loading docks. Eliminating the need to replace 10-20% of mobile assets each year can be a major source of savings for health systems.
Reduce rental expenses
Health systems that properly utilize RTLS technology can also substantially reduce their rental expenses. Healthcare workers often rent devices because they can’t locate what they need in the hospital. Without a system in place to properly track and locate mobile devices, clinicians rent new equipment to quickly fill an urgent need. This already unnecessary rental enters the hospital without being tracked, and often ends up not being returned to the vendor. The vendor then continues to charge the hospital for each day the device sits in the hospital.
RTLS can reduce the number of unnecessary rentals by making hospital-owned equipment easy to locate. If a health system puts an RTLS tag on any rental equipment entering the building, health systems will also have a clear look into where rental equipment is, how it’s being used, and how long it’s been in the hospital. It becomes easy to distinguish rental and owned equipment, while ensuring the timely return of rentals through automated alerts.
Optimize capital planning
RTLS technology provides health systems with valuable insights, not just into rental equipment, but into owned equipment as well. For example, health system leaders will be able to see if there are certain devices that have been sitting in a closet unused for an extended period.
The data gathered by RTLS technology allows executives to make objective, data-driven capital planning decisions. By tracking medical device availability and usage, health systems can reallocate equipment to a location where it would be more useful or make other changes to ensure resources are optimized and capital is allocated efficiently. RTLS technologies are especially valuable for decision-making when combined with a comprehensive clinical asset management strategy.
Mitigate cybersecurity risks
The healthcare industry is a prime target for cyberattacks. Health systems need to guard against these expensive and dangerous attacks, which cost an average of nearly $11 million. RTLS can be a valuable element of a health system’s cybersecurity toolkit. The technology provides faster access to device location and behavior, allowing health systems to better safeguard patient data and better manage their risk of a damaging cyberattack.
The number of reported healthcare data breaches each year doubled between 2018 and 2023. Because of this, health systems are constantly aiming to reduce the risk of electronic patient health information (ePHI) exposure. With RTLS, hospitals can be immediately alerted if a device capable of storing electronic patient health information (ePHI) is entering or leaving the facilities.
In addition, if there is a new vulnerability or issue for specific devices, RTLS allows technicians to quickly locate those devices and pull them out of use. The proper teams can then work to install a patch or remediate the problem. Without RTLS technology, a health system may not realize how many affected devices it has or where they are located. Staff may continue to use the devices, providing more opportunity for a breach.
Recruit and retain clinicians and technicians
Nursing shortages and rising labor costs are one of health system executives’ top concerns. One report found the average cost of turnover for one staff registered nurse is more than $56,000. At a time when more than half of nurses report experiencing symptoms of burnout, health systems can recruit and retain nursing talent by utilizing RTLS technology.
McKinsey research found nurses spend about 20% of a typical shift on activities that could be optimized by technology, including searching for supplies and devices. By using RTLS to track equipment, health systems could free up valuable time for nurses and eliminate unnecessary stress, allowing them to focus on patient care. This improves quality of life for nurses and prevents delays in patient care delivery.
RTLS can improve BMET productivity and availability as well. TRIMEDX has found BMETs spend an hour looking for equipment each shift. When BMETs can quickly find devices, they will be able to service and repair devices faster. This leads to reduced equipment downtime and improved compliance for preventative maintenance & alerts or recalls.
Management and upkeep are essential
For a health system to fully realize all the benefits of RTLS technology, it must make ongoing management and upkeep a priority. A properly managed RTLS program can maximize the usage, availability, and visibility of medical device inventory. However, if an RTLS system is installed and then neglected, health systems will struggle to see the financial and operational rewards.
One of the leading ways to make the most of RTLS technology is to work with a partner that can provide comprehensive clinical asset management. This team will have an in-depth knowledge of a health system’s medical device inventory, data, & technology and can provide ongoing support. On-site clinical engineering teams can manage RTLS technology on a day-to-day basis to make sure it’s operating properly.
As with any advancement in healthcare, RTLS technology alone won’t solve every problem. It’s vital to have the right people and processes in place to drive sustainable results.