Reducing Costs of Managing Medication Inventory in Automated Dispensing System in Hospital Units

Hospital pharmacies utilize automated dispensing systems (ADS) to store and dispense medication in hospital wards. We propose an algorithm to minimize the inventory management costs incurred in holding and refilling the medications stored in an ADS. The algorithm is a linear integer programming formulation to compute how to configure an ADS, and how to allocate medications into capacity-constrained containers. Using a numerical example with real hospital data we demonstrate significant percentage savings relative to the status quo

Impact assessment of an automated drug-dispensing system in a tertiary hospital

OBJECTIVE: To evaluate the costs and patient safety of a pilot implementation of an automated dispensing cabinet in a critical care unit of a private tertiary hospital in São Paulo/Brazil. METHODS: This study considered pre- (January-August 2013) and post- (October 2013-October 2014) intervention periods. We considered the time and cost of personnel, number of adverse events, audit adjustments to patient bills, and urgent requests and returns of medications to the central pharmacy. Costs were evaluated based on a 5-year analytical horizon and are reported in Brazilian Reals (R$) and US dollars (USD). RESULTS: The observed decrease in the mean number of events reported with regard to the automated drug-dispensing system between pre- and post-implementation periods was not significant. Importantly, the numbers are small, which limits the power of the mean comparative analysis between the two periods. A reduction in work time was observed among the nurses and administrative assistants, whereas pharmacist assistants showed an increased work load that resulted in an overall 6.5 hours of work saved/day and a reduction of R$ 33,598 (USD 14,444) during the first year. The initial investment (R$ 206,065; USD 88,592) would have been paid off in 5 years considering only personnel savings. Other findings included significant reductions of audit adjustments to patient hospital bills and urgent requests and returns of medications to the central pharmacy. CONCLUSIONS: Evidence of the positive impact of this technology on personnel time and costs and on other outcomes of interest is important for decision making by health managers

The drug logistics process: an innovation experience

Purpose - The purpose of this paper is to present the latest innovations in the drug distribution processes of hospital companies, which are currently dealing with high inventory and storage costs and fragmented organizational responsibilities. Design/methodology/approach - The literature review and the in-depth analysis of a case study support the understanding of the unit dose drug distribution system and the subsequent definition of the practical implications for hospital companies. Findings - Starting from the insights offered by the case study, the analysis shows that the unit dose system allows hospitals to improve the patient care quality and reduce costs. Research limitations/implications - The limitations of the research are those related to the theoretical and exploratory nature of the study, but from a practical point of view, the work provides important indications to the management of healthcare companies, which have to innovate their drug distribution systems. Originality/value - This paper analyzes a new and highly topical issue and provides several insights for the competitive development of a fundamental sector

RFID-based Drug Management and Monitoring System, Case of Public Hospitals in Tanzania, A Review Paper

Radio frequency Identification (RFID) is an automatic identification technology that enables tracking of people and objects. Recently, RFID technology has been deployed in hospital environment for patient and equipment tracking, surgical equipment monitoring, medication monitoring and improving health record access in emergency cases. The main advantages RFID technology are to provide resource optimization, quality customers’ care, enhanced accuracy, efficient and effective business processes and healthcare processes. The pharmacy department undergoes challenges such as complex manual work of record keeping and inventory management. The RFID technology can be deployed in pharmacy hospital unit to automate pharmacy process. In this work we present a review on current pharmacy management practices in the case study of public hospital in Tanzania, review on different research work to address the pharmacy challenges and finally proposed a system to overcome the limitation identified in the current systems

Lean Six Sigma in Healthcare: Combating the Military's Escalating Pharmacy Costs

Sponsored Report (for Acquisition Research Program)Healthcare costs throughout the United States are on the rise, drawing increased scrutiny from government officials and Congress. The cost of pharmacy operations and pharmaceuticals is growing at a rate that is alarmingly higher than that of the total cost of military healthcare itself. Recent congressional legislation has essentially given the Department of Defense the ultimatum to cut costs for beneficiaries wherever possible, or risk having benefits arbitrarily cut by Congress. In the face of this possibility, cutting costs through better business practices must be explored, particularly within the area of pharmacy operations. This project explores the potential cost savings that can be realized by implementing Lean Six Sigma (LSS) methodology in the pharmacy operations of the DoD Medical Treatment Facilities (MTF). This research proves that implementing Lean Six Sigma methodology will improve military pharmacy operations, often at little cost, while realizing significant savings and increased customer satisfaction.Naval Postgraduate School Acquisition Research ProgramApproved for public release; distribution is unlimited

Effects of Enterprise Digital Assistants in medication dispensing operations: Case hospital pharmacy

OBJECTIVES OF THE STUDY In this thesis, I study the effects of introducing automation in the form of barcode-reader enabled Enterprise Digital Assistants and their impact on work efficiency and medication safety in a hospital pharmacy setting. The goal is to determine whether the efficiency of the process can be improved without compromising medication safety. In addition to the quantitative objectives, employee perceptions on the likelihood of success of the implementation are studied to include a more qualitative approach on the subject. DATA AND METHODOLOGY The data include information on different phases of the medication dispensing process taking place in the HUS Hospital Pharmacy in Helsinki, Finland. My sample consists of 80 341 orders processed on 143 days between July 2014 and April 2015. I use statistical analysis to calculate pre- and post-implementation process throughput times and error rates. Employee perceptions are measured with a questionnaire and interviews. FINDINGS OF THE STUDY It is possible to improve the efficiency of the order-picking process by automating the pharmaceutical inspection phase with the EDAs without increasing the dispensing error rate. Firstly, The efficiency of the order-picking process improved by 34% from 1.40 rows per minute to 1.87 rows per minute. Secondly, the EDA implementation bears potential for further process streamlining, as the pharmaceutical inspection could be performed without an additional hospital pharmacist, freeing resources to perform more knowledge-intensive work tasks. The questionnaire and employee interviews revealed that employee perceptions on the usefulness and the ease-of-use of the implementation would seem to affect positively on the perceived likelihood of success of the implementation. Even though the implementation project had faced several difficulties, the employees considered that the devices are useful and thus have faith in the success of the implementation

Patient safety : analysis of the impact of implementation of automated dispensing cabinets on drug return in an university hospital

Patient safety and medication errors have received great attention and interest from health institutions. Drug return is a reverse logistics process that requires further analysis, because the delay or failure to return medications can create an accumulation of drugs in nursing units, favoring deviations and medication errors. The automated dispensing cabinets are a technological innovation that aims to reduce drug-related errors. The present study made an analysis of the amount of returned medications before and after the implantation of automated dispensing cabinets in a university hospita

Patient safety: analysis of the impact of implementation of automated dispensing cabinets on drug return in an university hospital

 Introduction: Patient safety and medication errors have received great attention and interest from health institutions. Drug return is a reverse logistics process that requires further analysis, because the delay or failure to return medications can create an accumulation of drugs in nursing units, favoring deviations and medication errors. The automated dispensing cabinets are a technological innovation that aims to reduce drug-related errors. The present study made an analysis of the amount of returned medications before and after the implantation of automated dispensing cabinets in a university hospitalMethods: This descriptive study presents a retrospective analysis of data on drug return collected from hospital reports published from 2013 to 2016.Results: Before the implantation of automated dispensing cabinets, the mean percentage of returned medications was 27%. In the first year after the implantation of automated dispensing cabinets, the mean percentage of returned medications was reduced to 4%.Conclusion: The implementation of the automated dispensing cabinets led to a reduction in drug return and in its associated risks, generating a positive impact on patient safety.Keywords: Pharmacy service; hospital, automation; patient safetyIntroduction: Patient safety and medication errors have received great attention and interest from health institutions. Drug return is a reverse logistics process that requires further analysis, because the delay or failure to return medications can create an accumulation of drugs in nursing units, favoring deviations and medication errors. The automated dispensing cabinets are a technological innovation that aims to reduce drug-related errors. The present study made an analysis of the amount of returned medications before and after the implantation of automated dispensing cabinets in a university hospitalMethods: This descriptive study presents a retrospective analysis of data on drug return collected from hospital reports published from 2013 to 2016.Results: Before the implantation of automated dispensing cabinets, the mean percentage of returned medications was 27%. In the first year after the implantation of automated dispensing cabinets, the mean percentage of returned medications was reduced to 4%.Conclusion: The implementation of the automated dispensing cabinets led to a reduction in drug return and in its associated risks, generating a positive impact on patient safety.Keywords: Pharmacy service; hospital, automation; patient safet