Editor's Note Medtronic has agreed to buy RF Surgical Systems for $235 million. The technology embeds radio frequency tags in surgical sponges, towels, and other products to help track and prevent them from being retained in the patient after surgical procedures.   Medtronic agreed to pay $235 million to buy…

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There are two ways to approach supply cost reduction. One is to minimize direct supply costs by optimizing product selection, controlling utilization, reducing waste, and negotiating more favorable prices. The other is to attack indirect supply costs driven by high inventories—the excess holding and labor costs associated with excessive supply…

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Hybrid ORs are proliferating in response to market, surgeon, and even patient demands, but building the business case for this technology can be challenging. “It’s a very expensive proposition,” says Lynne Ingle, MHA, BS, RN, CNOR, project manager for Gene Burton & Associates, a healthcare technology consulting company in Franklin,…

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Peak One Surgery Center in Frisco, Colorado, had a lucrative day this past October, when surgeons performed 14 procedures on local residents in the following specialties: orthopedics, general surgery, gynecology, pain management, and gastroenterology. Their pay? A mountain of gratitude.   Helping at home Frisco, population 2,683, is located in…

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Loopholes in supply contracts can wreak havoc with a supply budget, but attention to detail and proper terminology can help OR managers take charge instead of being charged unnecessary fees. “Not managing your agreement will cost you 12% to 25% of the spend or 100% of any savings achieved,” Girard…

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With decreasing Medicare reimbursements and increasing pressure to reduce costs, OR leaders everywhere are looking for creative solutions to balance their budgets. At Thomas Jefferson University Hospital (TJUH) in Philadelphia, standardizing surgical mesh looked like a way to save a bundle, and indeed a $1.5 million savings over a 3-year…

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Bristol Hospital had a supply problem. Instruments were often missing from case carts, so nurses had to scramble to find the items on the morning of a scheduled procedure. Staff wondered whether the problem was caused by shortages, but a Lean process revealed an entirely different scenario and forged a…

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OR Business Performance is a series intended to help OR managers and directors improve the success of their business.   Surgical supplies are a major cost category for hospital ORs. Depending on the specialty and the procedure, supplies may represent 50% or more of total costs per case. Unfortunately, new…

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Preparing patients for surgery at Cullman Regional Medical Center in Cullman, Alabama, used to take about 200 phone calls a day. Here’s a typical scenario: The OR is ready for the next patient. The OR calls the same-day surgery unit and asks if the patient is ready. Same-day surgery says…

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A kanban system seems like a logical method for managing surgical supplies. But it needs a strong foundation to be successful. Kanban, a Lean manufacturing method, relies on visual signals and standard work (related articles). The idea is to be able to tell at a glance that you have what…

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