Lawson Healthcare Solutions Optimization of Key Resources Forms a Foundation for Excellent Patient...
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Lawson Healthcare SolutionsOptimization of Key Resources Forms a Foundation for Excellent Patient
Care
Lee Farabaugh, Eric Lott, Tom McLoughlin, Ashwini Patki
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Enterprise Resource Management
• Offers solutions to the 3 critical areas of Resource Management:
• Workforce: Lawson Human Capital Management
• Supplies: Lawson Supply Chain Management
• Capital: Lawson Financials
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Lawson Supply Chain Management
• Provides the latest inventory management tools to the health care system
• Compatible with U.N. Standard Products and Services Code® (UNSPSC) and GS1
• Leader in industry– 60% of the top 50 Integrated Delivery Networks– 33% market share (hospitals with 250+ beds)– 4,000 customers in 40 countries, including 100 health care
providers• Competitors include IBM/Cognos, McKesson and Oracle
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Data Flow
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Materials Management is the branch of logistics that deals with the tangible components of a supply chain... this covers acquisition, quality control , purchasing and ordering…, and the standards involved in ordering, shipping, and warehousing. Wikipedia
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Traditional/ Legacy Model
• Large Inventory of Items maintained in hospital warehouse and storage areas in hospital.
• Large staff maintains inventory and searches for items as they are requested by units
• ESI/ NOVA software utilized to place orders, manage stock
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Process
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Users needs→→ Requesting Items
• Tasks– Catalog of items
– Purchase Orders
• Lawson Solution= Materials Management Inventory System (MMIS)– On-line, searchable database
of available items – Detailed descriptions of
products from supplier– Each item contains all
necessary fields to ensure order accuracy
– Every item has an associated vendor contract to ensure pricing accuracy
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Requesting Items
Challenges• Disconnect between user
of items and supply technicians
Lawson Solutions = Requisition Self-Service (RSS)• Orders placed directly by
users• Enhances accuracy and
cost control• UAB –
– over 2000 employees trained
– 500 are regular users
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Requesting Items- Par Inventory
• Tasks– Establish and adjust par
inventory goals for units and storage areas
– Determine items used on a routine basis
– Place orders to replenish items, i.e. maintain par levels
• Lawson Solution– Maintains electronic
database of par levels– Supports hand held
scanners– Scanners generate
automated orders
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Placing Orders
Tasks• Purchase orders faxed to
suppliers
Lawson Solutions• RSS and MMIS support
Electronic Data Interchange (EDI) through Global Health Exchange (GHX)– Enhances productivity – Creates an electronic trail of orders – Facilitates payment– Allows future use of GS1 standards
• Lawson Electronic Fax Integrator
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Shipping & Receiving
Tasks• Cross reference items with
orders• Receipt of items from
Cardinal, other distributors and delivery providers (Fed-Ex, UPS, USPS)
• Update Accounts Receivable
Lawson solutions• Electronic matching of
orders and deliveries• Maintains preset palate
unloading by final destination
• MMIS interfaces with UAB Finance’s Oracle enterprise
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Distribution
Tasks• Deliver items• Track location of items• Respond to recalls• Monitor expirations
Lawson Solutions• MMIS includes final
destination information on all items
• MMIS identifier specifies deliverey location
• Facilitates locating recalled and expired items
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Lawson Materials Management
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Visit to Supply Closet
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Data entry to Lawson
Handhelds synced with Lawson
Lawson system auto ordering:•Manual order by entering Lawson number• Shopping paradigm to search the product
catalog • Templates based on common product sets
to place standard orders
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Handheld Form View
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What happens to supplies?
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Hi Tech Display
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Ease of operation
• Accessibility• Flexibility• Timely delivery• UNSPSC codes: • No special degree/ certification required• Comparatively shorter training• Better reports
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Scope of Improvement
• RFID – potential• Visual effects • Ordering specialty items
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Literature Review: Patient Safety
Pelletier KD (2009). Mayo Clinic/Cardinal Health GLN Implementation. Mayo Clinic.
Standard Products and Services Code® (UNSPSC®) – Product Classification
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Literature Review: RFID
• Radio Frequency Identification (RFID) provides a way to improve patient care– Tracking patients, staff, and assets (equipment and
supplies)• Cost is prohibitive for items under $15 at this time• NY Presbyterian/Weill Cornell uses RFID to track
supplies in cardiac surgery department– $230,000 savings on unneeded heart valves
Kumar, S., Swanson, E., & Tran, T. (2009). RFID in the healthcare supply chain: usage and application. International Journal of Health Care Quality Assurance, 22(1), 67-81. Scheurenberg, B. K. (2008). RFID moves beyond assets: Provider organizations use tracking technologies to help improve workflow, quality of care and patient safety. Health Data Management, 16(1), 36-38.
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Literature Review: Case Studies
Catholic Health Initiatives • $125 million cost savings
– Utilization: 20% savings– Freight: 10% savings– Staffing: 4% savings– Supplies: $64% savings
• Reduced supply report data sources from 30 to 1
• Lawson Business Intelligence (BI) tools provide operational reports
Mountain States Health Alliance• Created single materials
management office to handle 7 facilities
• Electronic ordering increased 85% (95% with Lawson fax integrator)
• Lawson Requisition Self Service increased online orders by 49% with no staff increase
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Literature Review: Lessons from Mass Retail
• Supply chain streamlining in mass retail (Wal-Mart) translate to health care cost savings– Commoditizing currently customized items– Providing retail clinics as preferred providers of
routine treatments, tests, and vaccinations– Bundling services and products into an episode of
care
Agwunbi, J., London, A. (2009). Removing Costs from the Health Care Supply Chain: Lessons from Mass Retail. Health Affairs. 28(5), 1336-1342.
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Literature Review: Metrics and Benchmarking
• Benchmarking supply chain for continuous performance improvement:– Setting the Foundation– Gathering Data– Interpreting the Benchmarks– Taking Action
Smith-Daniels,Vicki. (2008). Hitting the Benchmark: How To Get The Most From Your Metrics. Materials Management in Health Care, 17(9) ,18.
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Summary
• Lawson streamlined the UAB Hospital supply chain
• Integrated Lawson with UAB Oracle system• Requires less space and capital• “Just In Time” philosophy
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Possible Improvements
• More “user friendly” technology• RFID system• Bundling of certain materials (i.e. gauze,
bandages, latex gloves)
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Questions???