Hospital pharmacy inventory management is a critical operational function that, while often perceived as a routine and background task, carries significant financial and operational implications.
But, traditional pharmacy inventory management methods can inadvertently lead to inefficiencies, regulatory compliance challenges, and resource wastage—factors that directly affect financial performance. The implementation of an advanced hospital pharmacy inventory control system is essential to address these challenges, ensuring streamlined processes, improved compliance, and optimized resource allocation. Without such a system, healthcare facilities risk undermining both operational efficiency and fiscal sustainability.
RFID technology for pharmacy inventory management is rapidly becoming the industry standard for fast, accurate, and cost-effective inventory control. Yet, many hospitals still rely on manual processes or outdated methods that are inefficient and prone to human error. Here’s why not adopting RFID and modern pharmacy inventory management software could be costing you more than just time.
The High Costs of Manual Pharmacy Inventory Management
Outdated hospital pharmacy inventory management processes lead to significant losses—from wasted time to wasted expired medications and even increased compliance risks. Here’s a closer look at what hospitals without a perpetual pharmacy inventory management system might experience.
1. Wasted Time
In every industry, time is money—and hospitals are no exception. Without automation, pharmacy teams spend hours each day manually tracking, counting, and organizing inventory. This is time that could be better spent on core tasks like patient care or compliance assurance.
Take the example of CaroMont Health. By adopting an advanced hospital pharmacy inventory management system, they saved 38.5 hours of labor during a sodium bicarbonate recall, identifying affected crash carts within minutes using RFID technology. Hospitals still relying on manual processes miss out on efficiencies that can free up valuable staff time.
2. Medication Waste
Manually managing inventory often leads to overlooked expiration dates or misplaced medications, which increases waste.
For example, Brigham and Women’s Hospital, using KitCheck, achieved a 91.6% reduction in expired medications, saving an impressive $20,267.88 per month.
For hospitals not leveraging RFID-powered pharmacy inventory management systems, untracked medications and waste represent significant recurring losses. With medication costs on the rise, hospitals simply can’t afford inefficiencies in inventory management.
3. Compliance and Safety Risks
Outdated inventory management comes with heavy compliance risks. Improper documentation, expired drugs in circulation, or regulatory violations can jeopardize patient safety and damage reputation. With a pharmacy inventory management system like KitCheck, hospitals can ensure compliance by tracking medications in real-time and avoiding unnecessary risks.
Additionally, RFID technology eliminates human errors that occur from manual processes. This minimizes the potential for medication errors, which can have devastating consequences for patient health and lead to costly lawsuits or fines.
4. Inefficient Inventory Purchases
Without real-time data insights, hospitals often over-purchase or under-purchase medications, disrupting their supply chain.
OhioHealth’s adoption of KitCheck RFID technology reduced unused medication waste by 41%, leading to significant cost savings and better inventory management.
Hospitals still using outdated systems may not have the visibility required to optimize inventory levels, leading to overstocking of low-usage medications while essential medications run low.
The Solution? A Modern Approach to Pharmacy Inventory Management
To remain competitive and cost-efficient, hospitals must adopt pharmacy inventory management best practices powered by modern technology. An RFID-enabled pharmacy inventory management system like KitCheck introduces real-time visibility, accuracy, and streamlined workflows that transform hospital pharmacy operations.
The Benefits of RFID-Driven Hospital Pharmacy Inventory Management
- A Simple, Scalable Process: RFID automation streamlines inventory management, reducing the risk of errors and waste. Staff save hours on manual checks, allowing them to focus on delivering better patient care.
- Patient Safety and Regulatory Compliance: Track medications in real time with 100% accuracy, ensuring compliance with regulatory standards and minimizing recalls or reputational risks. Decrease expirations and waste by up to 92%.
- Optimize Inventory and Decrease Costs: RFID-powered predictive insights help optimize PAR levels, reduce overstocking, and decrease overall inventory purchases.
- Maximize Staff Efficiency: Quickly locate and track unit-level inventory with ease, including lot numbers and expiration dates. Prevent shortages and ensure seamless operations.
Consistently Correct Restocking
Modernizing your hospital’s pharmacy inventory management doesn’t have to feel like an uphill battle. By implementing an RFID-enabled hospital pharmacy inventory management system like KitCheck, hospitals can achieve:
- Drastic reductions in time spent on manual inventory
- Significant cost savings from reduced waste
- Compliance assurance and improved patient care
Implementing KitCheck means future-proofing your hospital’s inventory processes and creating a system where every dollar is optimized, and every patient is protected.
Don’t leave your inventory to chance. Discover how KitCheck can directly improve your bottom-line by automating processes and reducing waste.