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Implementing structure and control over unofficial inventories in a multispecialty group practice
1Lexington Clinic, KY.
Hospital Materiel Management Quarterly
|January 8, 1994
Summary
Controlling end-user inventory, which represents 70% of supply costs, was achieved through a six-step program. This initiative successfully reduced "unofficial" inventory supply dollars by 7% in initial departments, demonstrating effective cost containment.
Area of Science:
- Healthcare Management
- Supply Chain Optimization
- Clinical Operations
Background:
- End-user inventories represent a significant portion (70%) of total inventory supply costs.
- Traditional materiel management often excludes control over end-user-held supplies.
- Effective cost containment strategies are crucial in healthcare settings.
Purpose of the Study:
- To implement and evaluate a cost containment program targeting end-user inventory.
- To reduce the financial impact of
Main Methods:
- A six-step program was developed and implemented by the Materials Manager.
- Key interventions included requisition training, enforcing approval levels, limiting requisitioners, and establishing par levels.
- The program was piloted in 12 initial departments.
Main Results:
- A 7% reduction in
- unofficial
- inventory supply dollars was achieved in the pilot departments.
- The program demonstrated success in controlling previously unmanaged inventory costs.
- Positive feedback was received from clinical and warehouse staff.
Conclusions:
- A structured, multi-faceted program can effectively control end-user inventory costs.
- Implementing par levels and controlling requisitions are key to reducing supply chain expenses.
- Successful inventory management improves overall financial performance in healthcare facilities.