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Moving from Asset Tracking to Asset Management Why RTLS Accuracy Matters

Introduction Use of Real-Time Location Systems (RTLS) for locating assets in healthcare facilities has enjoyed a steady growth in popularity over the past decade. RTLS systems that can achieve greater accuracy, speed and performance are becoming new requirements among healthcare decision makers. That’s because 100% certainty-based accuracy is what unlocks the true value of RTLS. This eBook will explore the distinction between asset tracking and asset management -- and how RTLS accuracy can help hospitals achieve greater value and return on investment.

Also included is a real-world case study from Mike Kohler, Director of Materiel Management at Mission Hospital Regional Medical Center in Orange County, CA. Mr. Kohler successfully installed a certainty-based RTLS system (CenTrak) to enable Asset Management use cases.

Asset Tracking Asset Tracking simply delivers just basic “asset visibility”. Often this is achieved using estimated location technologies like Wi-Fi and ZigBee. It’s great to have a general idea of where things are, but just “knowing where things are” only delivers a fraction of the potential benefits.

Asset Management Asset Management on the other hand requires much greater location certainty. Facilities can achieve substantial value by implementing enterprise-wide asset management solutions. Such as: • PAR-level management • Movement/interaction rules • Alerts/alarms • Process-improvement expertise

ASSET TRACKING vs. ASSET MANAGEMENT What’s the difference?

Asset Management: Healthcare Applications

PAR-Level Management This is the ability to set accurate PAR levels based on RTLS data. PAR-Level management includes automating equipment replenishment before departments run out. Also, staff members will never need to look for equipment, which reduces equipment hoarding and increases staff satisfaction.

Movement/Interaction Rules Asset management RTLS deployments enable the development and ongoing use of movement/interaction rules. These rules may be driven by each facility to enhance efficiency and safety.

Alerts and Alarms Asset Management applications should be able to leverage accurate location data to trigger alerts and alarms such as: • Cross-contamination alerts to reduce

infections • Exit alarms to prevent theft and loss • Alerts can be device- and/or department-

specific

Process-Improvement Expertise Collection of 100% reliable asset utilization and asset interaction data may be used to improve business processes. RTLS data which is 100% accurate can support process improvement and effective change management to alter work habits.

ASSET TRACKING vs. ASSET MANAGEMENT What’s the difference?

Gen2IR™ = Precise Location (Room 101) Second Generation Infrared (Gen2IR) will not pass through walls and does not suffer from traditional line-of-sight limitations. Therefore when a tag reads a room number, there are no errors.

Clean Utility Room

Hallway

Room 102 Room 101

RF-only “error” At 20’ to 30’ radius – Clean Utility Room, Hallway, Rm 101 or Rm 102 At 10’ radius – Room 101, Clean Utility Room or Hallway

Clean Utility Room

Hallway

Room 102 Room 101

PAR-level management Proximity of in-use, soiled and available assets present a challenge for PAR-level management; inaccurate location data = inaccurate PAR-level settings Available / In Use Status Asset availability can be determined with logical business rules, but only if the RTLS has location certain accuracy. Cross Contamination Alerts and Reporting Ensuring pumps and equipment went through the proper cleaning protocol requires accuracy.

10 feet 20 feet 30 feet

Fig 1: Estimated Location Accuracy Does not support Asset Management

Fig 2: Certainty-based Location Accuracy: Supports Asset Management applications

THE IMPORTANCE OF ACCURACY

RTLS applications beyond Asset Management require even greater location accuracy and location update speed. RTLS selection should strongly consider future use cases to maximize value and ROI of the deployment.

Pre and Post-Op Bed-level locating

Emergency Department Bed-level locating with rapid location update speeds

Operating Rooms Easy installation for non-disruptive full hospital deployment

Patient Transit/ Hallways Deploy RTLS in all areas

Staff Locating Deploy RTLS in all areas

Room-level, sub-room level Enable reliable nurse rounding compliance monitoring

ASSET TRACKING vs. ASSET MANAGEMENT What’s the difference?

Mike Kohler Mike Kohler is the Director of Materiel Management of Mission Hospital – a top performing hospital of St. Joseph Health System, and a 552-bed acute care hospital located in south Orange County, California.

Mike is a frequent presenter/speaker within St. Joseph Health System on Materiel Management. He is a Mission Hospital Continuing Education Faculty Member, holds a Bachelor of Science in Human Biology, and has over 22 years working in healthcare. Mr. Kohler is a lean black belt whose focus is the implementation of process improvements in supply chain and equipment management. Mission Viejo & Laguna

Beach, CA

Mike Kohler Director of Materiel

Management, Mission Hospital Regional

Medical Center

ASSET MANAGEMENT CASE STUDY Mission Hospital

Background Mission Hospital, a 552-bed facility with two campuses located in Mission Viejo and Laguna Beach, California, was experiencing significant costs relating to moveable medical equipment and its management. Shrinkage exceeded $150,000 annually, and rental costs were excessive. There was also a significant burden on staff members. Nursing, Biomed and Equipment management staff spent a great deal of time searching for equipment; they were using a manual “seek and find” method. Equipment shrinkage along with an inability to find equipment caused clinical staff to hoard equipment. This habit caused less equipment to be available. Finally, there was no reliable way to determine equipment utilization and purchasing needs.

RTLS Solution Mission Hospital deployed asset management software to solve these equipment distribution and maintenance problems. The software provider selected CenTrak’s Clinical-Grade RTLS™ which uses Second Generation Infrared (Gen2IR™) to track the location, cleaning and maintenance of

its moveable medical equipment, resulting in tremendous savings for the hospital. The asset management software provider deployed CenTrak in tandem with its own software to deliver an end-to-end asset management solution. CenTrak was selected because of its certainty-based accuracy (room and bay-level), performance (near immediate update speeds) and ease of installation (almost entirely battery-powered). In addition, the software provider took advantage of CenTrak’s Clinical-Grade Locating™ technology to create advanced rules and alerts that no other RTLS is capable of delivering.

Using CenTrak’s Clinical-Grade Locating™ technology, Mission Hospital is now able to track the location, cleaning and maintenance of its mobile medical equipment.

ASSET TRACKING vs. ASSET MANAGEMENT What’s the difference?

• Rate of lost or stolen devices dropped from 13.8% to 0%

• $150,000 to $200,000 annual savings due to the reduced rate of lost or stolen devices

• More than 50% increase in nursing satisfaction relative to equipment availability

• Significant increase in equipment utilization

Following the system’s installation, the equipment utilization rate for tagged items rose significantly. The rate of lost or stolen devices dropped from 13.8% to 0%, resulting in an annual savings of $150,000 to $200,000 worth of equipment that had been lost each year prior to installing the system. Equipment is proactively delivered with accurate par levels and replenishment. End-users are no longer hoarding and nursing satisfaction relative to equipment availability improved by more than 50% from pre-implementation levels.

RETURN ON INVESTMENT & RESULTS CenTrak Case Study

Many RTLS systems have proven to provide real benefits to healthcare by helping to locate assets, improve asset utilization and ultimately reduce asset expenses. However, to realize the maximum financial and clinical benefit with your RTLS deployment, accuracy, speed and reliability of the location data is essential.

Make sure to consider an RTLS infrastructure that can deliver 100% certainty-based accuracy. Anything less than 100% will not truly unlock the potential of your RTLS deployment. Accurate (certainty-based) location along with fast and frequent location updates are the key ingredients needed for RTLS-enabled workflow automation.

For more information about this eBook, please contact:

Adam Peck Director of Marketing CenTrak, Inc. o: (215) 860-2928 e: apeck@centrak.com

Learn more about CenTrak at www.centrak.com and see how much asset tracking or management can save your facility with the CenTrak RTLS calculator.

© 2014 CenTrak, Inc. All rights reserved

ASSET TRACKING vs. ASSET MANAGEMENT In Summary