Lawson Healthcare Solutions Optimization of Key Resources Forms a Foundation for Excellent Patient Care

1. Lawson Healthcare SolutionsOptimization of Key Resources Forms a Foundation for Excellent Patient Care Lee Farabaugh, Eric Lott, Tom McLoughlin, AshwiniPatki

2. 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

3. 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

4. Data Flow

5. 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

6. 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

7. Process

8. 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

9. Requesting Items Challenges 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 • Disconnect between user of items and supply technicians

10. 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

11. Placing Orders Tasks 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 • Purchase orders faxed to suppliers

12. Shipping & Receiving Tasks Lawson solutions Electronic matching of orders and deliveries Maintains preset palate unloading by final destination MMIS interfaces with UAB Finance’s Oracle enterprise • Cross reference items with orders • Receipt of items from Cardinal, other distributors and delivery providers (Fed-Ex, UPS, USPS) • Update Accounts Receivable

13. Distribution Tasks Lawson Solutions MMIS includes final destination information on all items MMIS identifier specifies deliverey location Facilitates locating recalled and expired items • Deliver items • Track location of items • Respond to recalls • Monitor expirations

14. Lawson Materials Management

15. Visit to Supply Closet

16. 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

17. Handheld Form View

18. What happens to supplies?

19. Hi Tech Display 

20. Ease of operation • Accessibility • Flexibility • Timely delivery • UNSPSC codes: • No special degree/ certification required • Comparatively shorter training • Better reports

21. Scope of Improvement • RFID – potential • Visual effects • Ordering specialty items

22. Literature Review: Patient Safety Standard Products and Services Code® (UNSPSC®) – Product Classification Pelletier KD (2009). Mayo Clinic/Cardinal Health GLN Implementation. Mayo Clinic.

23. 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.

24. Literature Review: Case Studies Catholic Health Initiatives 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 • $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

25. 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.

26. 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.

27. Summary Lawson streamlined the UAB Hospital supply chain Integrated Lawson with UAB Oracle system Requires less space and capital “Just In Time” philosophy

28. Possible Improvements More “user friendly” technology RFID system Bundling of certain materials (i.e. gauze, bandages, latex gloves)

29. Questions???