New
Technology
VICES
PRODUCTS & SERVICES
GTRI is developing protocols
for testing effects of RFID
Effective freight management
systems on medical devices
The Georgia Tech Research Institute (GTRI) recently
delivers the total package
began developing testing protocols for RFID technol-
ogy in the healthcare setting. The test protocol de- by Jeannie Akridge
velopment is being overseen by AIM Global, the
international trade association representing automatic
identification and mobility technology solution pro-
viders, and also includes MET Laboratories, a com-
pany that provides testing and certification services
I
f freight management is not already on program, many 3PLs tout savings ranging
your list of potential cost saving from 15 to 40 percent.
projects, maybe it should be. Driven by “Customers are starting to see true savings
for medical devices.
economic pressures, increased awareness of from a freight management perspective,”
“A comprehensive set of test protocols, which are
savings opportunities and the complex na- commented Doug Schwieger, director of
sufficiently precise to permit repeatable results, is re-
ture of freight management, healthcare fa- marketing and product development for
quired to understand if there is an interaction be-
cilities are ramping up their freight man- OptiFreight Logistics. “Healthcare facilities
tween various types of RFID systems and active
agement activities, oftentimes through the see a very rapid, positive ROI with minimal
implantable medical devices, electronic medical equip-
use of a third party logistics company (3PL) investments of time and resources [when]
ment, in vitro diagnostic equipment and biologics.
or outsourced freight management services. using a freight management company.”
Only after the protocols are developed will we be
“Healthcare is probably one of the last in- “This is an easy way to reduce costs for
able to investigate the cause of any interactions, the
dustries to come on board in understanding the provider because they don’t have to make
result of any interactions, and ways manufacturers
the impact of reducing overall transportation any clinical changes,” added Bayer.
might eliminate or mitigate interactions,” said Craig
and logistics costs,” said Joe Roeder, presi- Often, cost savings opportunities associ-
K. Harmon, pr
PRODUCTS & SER
esident and CEO of Q.E.D. Systems and
dent, logistics & distribution for NFI, a na- ated with freight management are not clearly
chairman of AIM Global’s RFID Experts Group. This
tionwide 3PL providing integrated supply evident, acknowledged Vinarsky, “and it’s
group is overseeing the healthcare Initiative and in-
chain solutions for a variety of industries. complicated to understand for somebody
cludes representatives from 40 organizations in the
As senior director of contract services for who is usually not involved in the details
United States, Europe and Asia.
Novation, LLC, Travis Johnson has seen when it comes to managing freight.”
GTRI researchers will test how RFID systems affect
“increased interest in providers wanting to Ira Tauber, COO for TRIOSE Inc., a full-
the function of implantable and wearable medical de-
take control of their freight expense. Pro- service logistics company focused solely on
vices, such as pacemakers, implantable cardioverter
viders are expecting more transparency into the healthcare market, noted that, “Histori-
defibrillators, neurostimulators, implantable infusion
freight costs and look at freight as a com- cally freight has been an unmanaged expense
pumps and cardiac monitors.
ponent of the total cost of a product. I be- line for these health facilities. They really
The researchers will test whether radio frequency-
lieve the increased interest in freight man- don’t have the resources for the internal pro-
emitting devices cause any negative effects on the
agement has been a component of the rapid cesses or expertise to manage this. It’s not
medical devices, and under what conditions these ef-
rise in raw materials we saw in Q3 of last just about making a contact with a vendor
fects might occur. Testing will also determine whether
year, and the current economy has driven and telling them to ship and bill it to a UPS
specific medical devices are particularly susceptible
providers to look for additional cost sav- or FedEx account number. The real key is
to certain radio frequency identification characteris-
ings over the cost of the medical device.” the ongoing management of the vendor com-
tics and if any corrective actions can be taken to miti-
Said John Vinarsky, MT (ASCP), MBA, vice pliance and then really managing the next
gate such susceptibility.
president, executive resources & office solu- level of complexity in terms of improving
Medical device testing is not new for GTRI, which
tions for Amerinet, “I know a lot of facilities and optimizing the logistics process.”
established its Medical Device Test Center more than
are looking at opportunities to reduce their “Shipping is not a primary focus for a
14 years ago. The facility was created to enable manu-
costs that they probably wouldn’t have con- healthcare organization,” said Deron Jett,
facturers of implantable cardiac pacemakers and
sidered a couple of years ago before the president, Onsite Management Group
defibrillators to work with providers of electronic ar-
economy had such a drastic change.” (OMG, LLC). “A department may research
ticle surveillance (EAS) systems, used by retailers, librar-
According to HLS MedFreight CEO Rick one year, get a great price and never look at
ies and other establishments to prevent theft and track
Bayer, “What you’re starting to see more and it again. Often the departments within a fa-
inventory.
more – the GPOs and our customers are driv- cility have different arrangements with one
To test the effects of RFID systems on medical de-
ing freight management contractually. There or more freight vendors.”
vices, the researchers simulate real-world conditions by
are many providers that are doing this to-
placing a medical device in a tank of saline solution that
day and they’re asking their GPO part- See FREIGHT MGMT on page 54
simulates the electrical characteristics of body tissue and
ners to help make this part of their con-
fluid. The medical device is then exposed to different
tract negotiations.”
RFID technologies. Several tests are performed with the
Sources estimated that freight ex-
device placed in different orientations to represent how
penses make up 3 to 6 percent of prod-
people typically interact with the emissions. The test pro-
uct costs, with hospitals spending on av-
tocols developed by GTRI will be submitted to the U.S.
erage $1,000 per bed in freight each year.
Food and Drug Administration for concurrence, after
While 15 to 20 percent of freight costs
which a worldwide certification program will be launched
are for outbound shipping, 80 to 85 per-
and other testing facilities will be invited to participate.
cent involves inbound shipments, creat-
http://gtresearchnews.gatech.edu/newsrelease/rfid-
ing the biggest opportunity for cost re-
medical.htm
duction. Depending on the level of
service provided and commitment to the
52 November 2009 • HEALTHCARE PURCHASING NEWS
www.hpnonline.com
0911-PS-Freight.pmd 52 10/13/2009, 10:53 AM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68