As your reimbursement, regulatory and business environments continue to evolve, you’ve probably looked at how to reduce costs on multiple occasions. You’ve had to make some difficult decisions. One thing is for sure, you don’t want to incur additional expenses. But, what if an expense could yield new cost savings and efficiencies and pay for itself in less than a year? Asset management software can do exactly that. While your existing business software does a good job of getting reimbursements, it is probably not designed to fully optimize your equipment. Asset management software can be added to your existing business software or operate as a stand-alone system to give you better control over your equipment and greater visibility into your operations. Experience shows that through improved equipment management, companies can achieve the following.
- deploy equipment more effectively, achieving a higher return on investment
- increase accuracy for billing
- meet regulatory requirements and produce reports for audits with more speed and ease
- eliminate lost equipment, reducing replacement spending and lost revenue
- save employee time and errors from taking manual inventories and/or manually inputting equipment data into systems
- improve safety
- reduce paperwork
Asset Tracking Basics
The first step in implementing asset tracking software is to affix barcode labels or radio-frequency identification (RFID) tags on all equipment, from oxygen concentrators and tanks to electric scooters and hospital beds. Begin with the warehouse inventory and continue with equipment in the field as it returns through normal turnover. Some HME providers would prefer to use GPS technology to track equipment and know its exact location. However, several factors make this impractical— including the high cost of tracking devices and unreliable performance if the transponder isn’t in direct view of the sky. Using a smartphone or handheld computer, the next step is to scan and register the barcoded/tagged equipment into a database. Determining which asset attributes are key to providing the information you need will prevent you from collecting too much data that could slow you down. Keep in mind that you can start small by tracking only a certain type of equipment and expand the system later to track the rest. Once these steps are complete, you can begin scanning equipment as it leaves the warehouse and is loaded onto delivery trucks. Delivery drivers also use smartphones or handheld computers to scan equipment when dropping off and picking up at patient homes. Customers sign for deliveries right on the smartphone or handheld computer screen, so you can store electronic signatures and eliminate disputes about who signed for the equipment and what type of equipment was dropped off.
The Essentials
There are many options to choose from when selecting an asset tracking software solution, from homegrown systems or add-on programs for HME billing packages to software created specifically for asset tracking. You’ll need to identify and evaluate the critical features that will offer you the best return on investment in both the short- and long-term. Certain features should be at the top of your list. Ease of use—A tracking system needs to be flexible and uncomplicated, especially because it will be used by a variety of people in different settings. It should adapt to how you do business, rather than require you to change your processes to fit its design. The software should be intuitive and easy for users to learn. The goal is to make work faster, easier, more efficient and more effective. Real world readiness—Rigid processes that don’t allow for mistakes or variations in routines are not practical. A system that works in the real world accommodates inevitable human errors and common mistakes. Consider what happens if a delivery driver forgets to scan a piece of equipment. The only recourse for some asset management software is to input a fake equipment number, which defeats the purpose of asset tracking. Systems that are real world-ready offer flexible capabilities and workarounds. For example, some systems are unable to accept data out of order, such as when a delivery driver forgets to download scans for a couple of days. A real world-ready system will adjust for this error and record the deliveries on the appropriate day of the week instead of treating all scans as if they all happened on the day the data was downloaded. Scalability in cost and scope—Some systems require you to purchase the software and host it at your business. This often requires a large outlay for computer hardware. On the contrary, cloud-based tracking software enables you to avoid a major upfront investment. Typically, you pay an initial access fee and then a monthly charge for what you use. You can increase or decrease the level of service at any time. Similarly, some software is organized in modules so you can expand your system capabilities over time. You can begin with a module for tracking equipment, and then add a module for keeping maintenance schedules, recording repairs and managing related activities instead of paying for, and rolling out, both at the same time. Device agnostic—From smartphones and tablets to handheld computers and scanners, there are a multitude of devices available from a variety of manufacturers at all price levels. Asset tracking software that can work with any of these devices gives you the optimal chance for selecting ones that best suit your needs, preferences and budget. Be sure to determine the true cost of ownership before choosing any device. Evaluate such issues as the ruggedness of the device given the work environment, frequency of new models and availability of device repair and support. Regulatory compliance—Misplaced log sheets, missing approvals and unrecorded or forgotten procedures can lead to failed inspections, fines, facility closings or other costly penalties. Asset tracking software can collect the information you need on an ongoing basis and store it safely to ensure that required documents can be supplied to regulators at a moment’s notice. Some systems allow you to automate employee workflow tasks to ensure compliance with regulatory requirements and accreditation standards, as well as a patient’s plan of care. Additionally, asset tracking software offers a fast and highly reliable way to manage recalls. Consider a situation where oxygen cylinders have been compromised. In addition to knowing the location of all your cylinders, the software tracks lot numbers. It takes only a few minutes to identify where the compromised cylinders are located so you can notify patients quickly.
Driving Additional Efficiencies and Growth
Asset tracking software offers many other advantages and capabilities for maximizing equipment use and operation. Their level of importance depends on your goals and need for improvement in specific areas. Additional features to consider include the following. Equipment maintenance—Some systems offer the ability to record, track and report on equipment repair, inspection and testing actions and can provide alerts when maintenance is due on equipment. You can establish step-by-step processes to follow for a given maintenance action and enforce the collection of information at each step. Detailed and accurate records ensure that your equipment is performing in line with manufacturer warranties and can be essential in supporting your case in a lawsuit over faulty equipment. Reducing the incidence of malfunctioning equipment saves inconvenience and care issues for patients and the time and cost of swapping out equipment and lost revenue. Real-time tracking—This feature can help companies better manage inventory levels among internal locations and the delivery fleet. Instead of a batch approach, which requires waiting until all drivers have downloaded the day’s deliveries and returns from their handheld devices into a central database, real-time tracking gives you the ability to know where all your equipment is at any time. Communication—Asset tracking software allows you to offer a new level of service in coordinating care that can make you a preferred partner for other providers and patients. A visiting nurse who administers medicine to a diabetic, for example, does not want to arrive at the patient’s house before the insulin pump has been delivered. Respiratory therapists and their patients need oxygen concentrators that haven’t missed their regular maintenance because they sat in the therapist’s car trunk instead of being returned on time to the HME provider. Reporting—Analyzing tracking data can pinpoint opportunities for more improvement. By evaluating delivery patterns, you may find ways to reduce distribution costs and improve patient satisfaction. Consider a patient who is receiving three deliveries of oxygen cylinders per week. Switching the patient to an oxygen concentrator reduces delivery costs while enhancing care and satisfaction.
The Case for Tracking Software
The benefits in cost and time savings from asset tracking software, maximizing equipment utilization and streamlining operations are compelling. The ability to leverage technology and collect data to improve performance yields higher patient satisfaction and spurs business growth. Given the external pressures HME providers are facing, it’s clear that implementing a tracking solution should be a high priority.
