HIPAA, the Health Insurance Portability and Accountability Act, has come to mean one thing to the average consumer: healthcare privacy. Medical information is kept strictly private, far from the prying eyes of journalists, employers, and neighborhood gossips. Many healthcare providers have come close to eliminating paper documents in their practices. Even if they use paper forms, the forms are imaged into an electronic healthcare record (EHR) with advanced crypto-security.
Healthcare facilities managers are concerned with HIPAA only insofar as they need to ensure sufficient storage space for paper documents, and adequate operational resources for the organization’s IT needs. But facilities managers, like healthcare professionals, generate a sizeable number of paper documents even when a building’s design originated on computers. And those documents have risk management implications just like patients’ documents.
Unlike patient documents, FM documents are generally very public. Drawings, permits, project schedules, punch lists – all are public, and subject to a legal doctrine called the Statute of Repose. The statute of repose is similar to the statute of limitations; it sets a limit on the amount of time a design client can hold a design/construction professional liable for errors. If there are any complaints or legal actions, all the supporting documents will be needed.
As a facilities manager (i.e., the client), you’ll want to retain all construction-related documents for at least the duration of the statute of repose, if not for several years beyond, as required by risk management policies. That’s a lot of paper, and it takes up a lot of storage space for a number of years. Plus, the paper documents have all the usual vulnerabilities of paper: fire, floods, pests, and pilferage, as well as loss or misfiling.
Imaging a healthcare facility’s documents offers the same advantages that come with imaged patient documents: compact storage, security, and information accessibility including authorized search and sharing. If there is a need to refer to any of these documents, they can be retrieved with electronic speed, much faster than a laborious hunt through numerous flat files.
Healthcare facilities managers are focused on the needs of their healthcare organization and the patients it serves. But when they include their own document conversion needs along with those of the other departments, they will gain efficiency and effectiveness that makes them even better at their work. And they are managing risks during the period of the statute of repose.
Experimental paradigms and QC testing put subjects through extreme conditions. Heat and cold, solvents, exceptionally high pressure – some or all of these may be applied in research. But if specimens can’t be identified with absolute accuracy, test results are questionable.
Paper labels can fall off. Ink can fade or smear. When researchers at NIH (National Institutes of Health) considered using RFID to identify specimens, they needed to find out if RFID tags could withstand the harsh conditions in labs.
Being researchers, they subjected a batch of RFID tags to the same rigorous tests they used with their other scientific investigations. The tags were put through repeated test cycles, including:
- Wet and dry autoclave cycles with temperatures as high as 120 degrees centigrade (248 degrees Fahrenheit)
- Multiple exposures to tissue-staining chemicals hematoxylin and eosin
- High temperatures of 75 degrees centigrade (167 degrees Fahrenheit) for 7 days
- Cold temperatures as low as -196 degrees centigrade (-320 degrees Fahrenheit) for 12 months
- Freeze-thaw cycles fluctuating between -196 degrees and 22 degrees centigrade (-320 and 72 degrees Fahrenheit)
The results? RFID tags are plenty tough. The researchers found them to be especially cold tolerant: Even after being frozen solid for one year, the tags still functioned perfectly. And the tags subjected to freeze-thaw cycles also performed flawlessly even after 50 cycles. In fact, only two tags failed, one after 9 dry autoclave cycles and one after chemical exposure.
The researchers concluded that RFID tags were ideal for life-sciences specimen tracking, durable even in extreme test conditions. They suggested adding bar code labels as a back-up for dry-autoclave and chemical conditions, but emphasized the tags’ 100% tolerance for heat and cold – conditions that are common in many testing and bio-archiving processes, as well as pharmaceutical manufacturing and healthcare cryostorage.
What does this mean for other RFID applications? In more standard conditions – offices, warehouses, retail and manufacturing operations – RFID functions flawlessly. And for lab settings with extreme conditions, RFID is a valuable tool for maintaining data integrity.
Scientists value accuracy, but they’re not the only ones. Every business relies on accurate information, no matter the circumstances, the products, or the services. RFID delivers, every time.
A 600-bed hospital managed by the Mayo Clinic was among the first to calculate and publish the results of an ROI analysis of RFID in a healthcare setting. The final number was impressive: 327% ROI over the first three years, with break-even at less than a year.
But maybe your organization isn’t in the healthcare business. You manage a professional services company, a manufacturing business, a museum, or a retail store. How do you calculate RFID’s ROI when your operations are quite different from a hospital’s operations?
ROI calculations, at their most fundamental, start with questions.
- What items are vital to your operations? Answer very specifically (e.g. “33 laptop computers with 16 gb of storage,” rather than “computers”). These items can be operational elements, or manufactured products, or a combination.
- Visibility: How many times per day/week/month does an item go missing? How often are you short on supplies?
- Intrinsic value: What does the loss of an item cost – not just the hard cost, but the cost of intangible added value? Artwork or data are examples.
- Management costs: What is the cost of periodic inventories or audits to maintain operations?
- Ancillary costs: How much income is lost due to down time when an item is missing or lost, or supplies run low? Are there costs associated with regulatory fines for lost items? How do inaccurate inventories in one department impact other departments’ finances?
With these numbers in hand, calculate two cost scenarios. One scenario is for existing conditions. The other includes the potential improvement to visibility provided by RFID. Most RFID users see visibility (loss) improvements of 60% or better.
But to truly calculate ROI, we have to project the potential savings over an extended period, usually 3 to 5 years. The Net Present Value (NPV) formula gives the most realistic ROI projections for RFID. The NPV formula shows whether the benefits outweigh the costs.
If you manage finances for your organization, you’re familiar with NPV. If you work in a less math-intensive department, you might find an NPV calculator useful. Either way, the answer will give you a strong indication of the wisdom of an investment in RFID. We’re quite confident you’ll be pleasantly surprised by the outcome!
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Counterfeits are big business. A global analysis estimated lost sales of $1.82 trillion in 2020. And it’s not just the sales lost to counterfeits. Jobs are lost. Even lives are lost. And brand trust – intangible and invaluable – is damaged, perhaps forever.
Fake products aren’t confined to luxury goods like handbags and watches. They include:
- Pharmaceuticals – Whether they are ineffective sugar pills, or contain dangerous toxins, counterfeit medications have been estimated to kill as many as 1 million people annually.
- Art and Antiquities – Reputable museums and private collectors paid a grand total of $80 million for counterfeit works from one New York forger, as documented in the film “Made You Look.”
- Consumer goods – From consumer electronics to vintage wines, fake labels and fake contents cost the U.S. $600 billion per year.
- Manufacturing components – Falsely labeled components and materials were reported to cost the automotive industry alone $3 billion per year.
Adding insult to injury, counterfeits destroy brand trust. A Harris Poll of 2018 found that if Americans learned that they had purchased a fake product, 73% would stop buying from the company that sold it.
Technology comes to the rescue in the form of RFID. RFID assigns a unique identifier to every element of a product. It starts at the very beginning of the manufacturing process and continues through product completion, shipping, warehousing, and retail sale. The authenticity of each finished product can be certified. Its RFID-managed and controlled “history” is unimpeachable. Your brand’s reputation is enhanced though the use of anti-counterfeit technology, and customers trust your brand more than ever.
RFID has many benefits, from inventory management to operational security and more. But perhaps none is more valuable, in the long run, than protecting your brand.
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Healthcare has been very much on everyone’s mind during this past year and a half of pandemic health concerns. With hospital capacity stretched to the max, hospital managers are eager to find ways to minimize costly equipment and medication losses.
One hospital in Michigan discovered that small but valuable equipment items were being mixed with medical waste, and thrown out in the trash. Usable medical surplus – the result of over-ordering due to inventory uncertainties – is being dumped into landfills every day, according to a report by the National Institutes of Health.
On the pharmaceutical front, the Drug Supply Chain Security Act (DSCSA) requires tracking of certain drugs throughout the supply chain, from manufacturer to end user. Protenus reports 18.7 million prescription pills lost from hospitals in the first half of 2018.
Good inventory management is, of course, the way to avoid such equipment and medication losses, and the compliance risks that come with such losses. But hand-counting beds and pills is labor intensive. It takes medical personnel away from their primary mission of healthcare delivery.
RFID solves the inventory problem and the labor problem simultaneously.
The Michigan hospital instituted a multi-year program to add RFID tags to its 12,000 pieces of medical equipment. Now it tracks equipment from deployment for patient usage, to “soiled” rooms for used equipment, through cleaning, and back to readiness for the next patient. The hospital saved an estimated $4,300 almost immediately by retrieving equipment accidentally headed for the trash. And hospital staff is not wasting valuable time searching for missing equipment.
Hospital pharmacies, too, will benefit from RFID implementation. The FDA has instituted a pilot program, Kit Check, including several major medical centers and drug companies. Kit Check tests tracking and system interoperability through the supply chain, starting with the medication manufacturer. RFID readers monitor the movement of medications in and out of the pharmacy. Medication errors are reduced, and pharmacists can easily identify returns and recalls. And the time-consuming manual counts are completely eliminated.
Healthcare RFID is strongly recommended by the experts in Forbes Magazine. With improved equipment and pharmaceutical inventory management, hospitals can get a handle on their costs, pass the savings on to patients, and still improve their profits.
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Shortages and hoarding were two of the many unwelcome side effects of the pandemic. Remember the Great Toilet Paper Shortage of 2020? A similar effect was felt in many business sectors. Manufacturers experienced shortages of parts or materials. Hospitals ran short of PPE and other supplies. Out-of-stocks cost retailers billions in a year.
Businesses responded to shortages by overstocking inventory. But overstocking is costly. Buying excess inventory is expensive; storing the excess adds additional costs. And if demand suddenly drops, your business is left holding the bag.
The just in time (JIT) production and distribution chain has been the enterprise holy grail for more than 3 decades. It only works if every segment of the supply chain communicates with every other segment in a timely manner. Any lapse or slow-down of communication means potential or actual shortages, with a ripple effect that is felt all up and down the line. Time is indeed of the essence.
And timely communication is where RFID shines. Not only does it track your inventory coming in the door, it tracks it as it leaves. And it communicates that information to your ERP system, in real time. At any given moment, managers can know exactly what they have on hand, and they can re-order at the right time to avoid a shortage, or an excess.
Moreover, this close monitoring of inventory doesn’t add to labor costs. Door-mounted RFID readers collect information automatically as inventory moves in and out. There’s no need to wait for a manual check-out, or even slow down for a bar code reader. RFID wins the inventory race every time, as this video shows.
Fast, accurate tracking of inventory is the key to keeping the supply chain moving smoothly and profitably. The data collected from RFID lets businesses confidently predict supply and demand throughout the supply chain. RFID is your ally in the battle for profitability.
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