Cost justification for materials management

Recently, a study was conducted to determine the potential cost savings resulting from the implementation of an on-line, real-time materials management system for the surgical department of a 900-bed, multi-hospital facility in Little Rock, Ark. As a result of this study, anticipated savings of more than $600,000 annually have been identified. The following text highlights cost savings and features recommendations for those healthcare organizations interested in conducting a similar review.