Supply Waste Awareness Program

Staff who are aware of the relationship between their behavior and resource utilization can make a major impact on the financial health of their department and UI Hospitals and Clinics.

What is supply waste:
Waste comes about when staff either intentionally or unintentionally uses products or equipment inappropriately or in excess.

• Loss through careless or needless use
• "Cost unconscious demand"- Historically, the health care system had functioned in an environment of cost unconscious demand, now we want everyone to become cost conscious. If you had a choice between a $10 item and $5 and both were acceptable, which would you open and use?

Why is supply awareness so important?

• Our institution is in the middle of a five-year plan to cut $65,000,000 from our budget and expenses.
• We would like to complete this program with as little disruption to staffing and service changes as possible.
• The major priority in health care for immediate future is to maintain standards while exploring any means available to decrease costs.
• This priority is part of every staff members job responsibility - from the top to the bottom.

These are some of the many reasons that we need to reduce expenses and become more aware of product waste.

• Managed care requirements: In recent years, as managed care has taken over the funding of health care, fees have diminished but operating costs have remained the same or increased. Overall the cost of providing heath care has increased in relation to revenue.
• Least provocative action: Avoidance of wasteful practices is a technique that is the least provocative and easiest to use, however, can have the greatest impact on the financial health of UI Hospitals and Clinics.
• Estimated savings: of 10 to 25 percent, In some similar institutions, it has been estimated that inefficient use of supplies and equipment can add $1.6 million to a typical hospital budget without adding quality.
• Lack of knowledge causes waste: Patient care and patient care support departments are the largest users of supplies and equipment; however, all departments must be waste savvy and proactive to meet the challenges of the present day health care system.

What attitudes lead to waste?

• The what if: Anticipating and reacting to uncertain, unrealistic, and unlikely situations because of previous experiences when the system failed, not having enough inventory for a procedure, getting a backorder notice from a vendor.
• The just in case: Order more than needed.
• The more is better: The more we have on the shelf, we know we will never run out. Get involved and help with managing inventory, don’t try and fill up the space, get only as much as you need.
• It’s mine and I won’t share: In the past we needed something and we had trouble getting it, no one would give it to us, we have one now, we don’t need it now, but we won’t give it up because we may need it someday - you never know.
• It’s not my job!: Cost containment and material management issues are not in my job description. It’s not my job to make sure we follow cost containment policies, let someone else worry about those things. We are all on the same team here. For instance, return of wheelchairs to lobby, increases the pool of chairs available for everyone, reduces our capital equipment costs and puts more money back into the budget for crucially necessary supplies.
• The facility has plenty of money: It’s not my money why should I have to be careful how I spend it. We are asking you as new staff members to lead the way to economic awareness that is necessary for making cost conscious decisions.

What are areas of potential waste?

• Incorrect ordering: Is it on contract, can you get from Processed Stores?
• Inappropriate use: Using any supply or piece of equipment for a purpose it was not intended to fulfill. Examples, using a washcloth for a purpose other than patient care, or connecting multiple IV sets, rather than use of a longer set.
• Convenience packaging: Ordering pre assembled kits or multiple item packages because of lack of information of what is needed and available or because of ease of ordering or use. Purchasing a higher priced item because it fits the storage area.
• Poor inventory control: Careless use - disregard for how or why an items is used leading to inappropriate use, overuse, breakage etc. — ordering 10 when you only need one. Or ordering monthly when you could order daily or weekly as needed.
• Theft: Taking or allowing others to take supplies or equipment purchased by and for institution use.
• Opening more than needed: anticipating need, but the situation changes.

More areas of potential supply and equipment waste:

• Improper storage: Storing items in places where they can be damaged, forgotten, easily stolen, or spoiled. Keep items at appropriate temperatures and under clean conditions.
• The new toy syndrome: Not wanting to use the "older" equipment available even though it will do the job.
• Hoarding: Holding more supplies or equipment than reasonably required so you don’t run out. Keeping equipment hidden in closets so no one can share. "Pack Rat Syndrome."

(IV pumps)

• Careless use: Pulling the sheet out of the middle and having the rest fall on the floor, and then tossing them into the laundry again.
• Lack of standardization: Multiple products for the same use, in a variety of areas, using multiple vendor contracts, and not obtaining best prices by purchasing via volume.

What can be done-actions will decrease waste and save resources

• Change attitudes: Look at the entire picture, think how your actions will affect the entire facility. We are all on the same team. Talk to your support systems so you get what you need when it is needed.
• Gain knowledge: Use good information to make decision. Learn to identify what is needed, what is available, how to use appropriately, how to safeguard, how to order and how to store.
• Treat supplies and equipment: As if you had personally have to pay for every item you order or use and act accordingly.

As you see opportunities to improve processes, reduce costs, or improve performance, call 4-VALU- the phone number for Terri Stoner, Value Analysis Facilitator.