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Integrating Hospital Inventory Management Software with Ordering and Billing

Managing inventory efficiently is critical for healthcare organizations to provide quality patient care while controlling costs. However, the unique challenges of healthcare inventory management, including managing expensive medical supplies, dealing with variable usage patterns, and complying with regulations, require specialized solutions. Medical inventory management software provides the visibility and control needed but must integrate with other major healthcare IT systems for maximum impact. Connecting inventory management software with ordering and billing systems can reduce costs, fewer stockouts, more accurate spending data, and better patient outcomes.

Benefits of Integrated Systems

Integrating inventory management software for healthcare with the ordering and billing systems used by clinics offers significant benefits, including:

Cost Savings

Integrating inventory management provides much greater visibility into actual usage and spending on medical supplies. By connecting ordering data showing what’s been purchased with real-time inventory data on current stock levels and expiration dates, healthcare providers gain critical insight into what supplies are being used versus sitting unused on shelves. This allows for improved purchasing decisions, which reduce excess stock and waste, leading to substantial cost savings. There are also major cost savings by eliminating manual, error-prone processes for tracking inventory. Automation saves significant time for clinicians that can be reallocated to patient care.

Fewer Stockouts

The constant danger in healthcare inventory is running out of critical items, which can delay urgent patient care. Integrated systems that connect real-time inventory usage data across departments with smart reordering and procurement processes ensure that adequate supplies are always available. Adjustments can even be made dynamically based on patient schedules and upcoming procedures. By monitoring all transactions and inventory levels enterprise-wide, stockouts become much less likely, enhancing patient outcomes.

Insight into Spending

Without an integrated view of inventory, purchasing, and patient billing, healthcare providers struggle to track spending accurately. An integrated platform connects the supply chain with patient outcomes, revealing procedural costs and true usage spending across departments. This provides unprecedented visibility into how supplies are being consumed and what they are costing. Healthcare finance teams can use this data to identify waste, analyze spending trends, enhance budgeting, improve charge capture, and negotiate better vendor contracts.

Patient Health and Safety

Integrated systems also directly improve patient safety in multiple ways. Accurately tracking expiration dates for medications and medical devices helps prevent the use of expired items. Lot numbers can also be monitored closely to identify recalled items and remove them from inventory quickly. Additionally, patient care and procedures are not impacted or delayed by preventing shortages of crucial supplies due to a lack of needed medical devices, implants, or medications.

Regulatory Compliance

Maintaining compliance with various healthcare regulations becomes much easier with end-to-end visibility and tracking of high-value medical supplies. Usage can be accurately tied to patients to prevent billing errors and fraud. Full chain of custody visibility also improves recall response times and supervision of controlled substances. Automated reporting provides audit trails required by regulating agencies. In summary, integration leads to major operational efficiencies and better healthcare delivery.

Find more information about the benefits of integrated systems on Empeek.

Core Components of an Integrated System

These three core components must be integrated to achieve the benefits outlined above:

Inventory Management Software

This core system is the central source of truth for inventory and supplies across the healthcare facility. It tracks critical details about each item in inventory, including:

  • Current stock quantities by location (e.g., central warehouse, operating rooms, floors, etc.)

  • Reorder points and stock buffer targets

  • Costs and pricing

  • Expiration and lot numbers

  • Item descriptions and identifiers

  • Special handling needs (refrigeration, hazardous materials)

The medical supply inventory software handles all supply chain processes from purchasing and receiving through stocking, distribution, and consumption. Accurately tracking this data is essential for healthcare providers to control costs, prevent shortages, monitor transactions, and manage their valuable resources.

Ordering Systems

These systems handle the purchasing and procuring of regular supplies consumed by the healthcare facility. They manage relationships with distributors and other medical suppliers who provide everything from basic medical consumables to expensive implants and devices. The ordering systems typically interface with back-end financial and ERP software to issue purchase orders, receive invoices, and process payments.

Billing Systems

The systems responsible for patient billing and medical records, including electronic health record (EHR) software, are on the front-end. To bill usage appropriately, these systems must accurately capture patients’ consumption of supplies, medications, and devices during diagnoses and treatments. They interface with insurance companies and claims processing systems. Linking billing and ordering with inventory gives insights into profitability by procedure.

Approaches to Integration

Several technical approaches can be utilized to integrate these core systems, including:

Custom Interfaces

The traditional method is developing customized application program interfaces (APIs) to allow data to flow between standalone systems. APIs act as software brokers sitting in between systems and translating data so it can be passed seamlessly between them. The downside is the complexity of connecting every system into one cohesive data environment. Interfaces must be constantly updated and can break with any changes to the underlying systems.

Robotic Process Automation (RPA)

An emerging technical option is using software bots to emulate user behaviors. These bots can log into multiple systems and applications, scrape data from them, and then transfer it automatically. For example, a bot could pull inventory usage from the EHR software and inject it into the central inventory management platform. Bots run scheduled data migration jobs without needing human intervention. However, they have limited capabilities for complex processes or real-time integrations.

Unified Platforms

The most seamless integration option is implementing unified platforms with end-to-end inventory, ordering, medical records, and billing capabilities built into a single solution, sharing one database. A unified system has out-of-the-box connectivity between modules that facilitates real-time synchronization of all data the instant any changes occur. For example, when supplies are received or used for a patient procedure, the updates are reflected simultaneously in the inventory, medical records, and patient billing. This level of deep integration is only possible in purpose-built healthcare IT platforms.

Capabilities of Integrated Inventory Management

Sophisticated hospital inventory management systems go beyond just managing stock counts by providing additional capabilities when integrated with other systems, including:

  • Automated reordering based on stock levels, upcoming procedures, patient schedules, and smart forecasts of item usage.

  • Tracking the full chain of custody for medical items, including expiration dates, lot tracking, and locations down to the procedure tray level.

  • Integration with barcode scanning equipment for simplified receiving, put-away, cycle counts, picking, and distribution to departments.

  • Monitoring temperature-controlled storage environments and special handling instructions for medications.

  • Flag expired, damaged, recalled, or soon-to-expire items and triggering automatic replacements.

  • Post usage data to patient medical records and accurately update departmental budgets.

To Conclude

In closing, integrating healthcare inventory management systems should be a priority for healthcare organizations looking to improve operations. Bringing these core systems together provides enhanced visibility into supply consumption and spending, prevents dangerous stockouts, ensures regulatory compliance, and helps improve patient outcomes. While custom development of interfaces between existing systems is an option, the most seamless and cost-effective approach may be adopting an integrated platform specifically built for healthcare inventory, purchasing, and medical records. With tight linkages between data and workflows, such solutions can pay for themselves through the significant long-term savings they create. Healthcare providers investing in purpose-built inventory integration can expect increased efficiency, lower expenses, and, most importantly, better patient care.

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