Calculating the business value of a technology investment doesn’t have to be a “fuzzy” exercise. If you’ve got directional alignment between stakeholders on estimation procedures and accuracy levels, calculating cost and value is very much the same process. When it’s done well, not only can you build a solid business case supporting contemplated investments, but you’ll know exactly how to measure and report Return on Investment (ROI) progress.
Intuitively, the more severe the problem you’re fixing is, the greater the ROI. When considering how manual and outdated so many IoHT technology management workflows are, the value of automation is hard to overstate. The opportunities to improve productivity are easy to spot, and the associated labor savings are easy to evaluate. Importantly, the benefits accrue naturally. For example, a maintenance professional does not require training “to stop searching” for infusion pumps that require a battery change. If they are presented with the location and battery levels of infusion pumps requiring maintenance, they know exactly what to do.
Here’s a system example: Most computerized maintenance management systems (CMMS) and configuration management databases (CMDB) are “disconnected” from the connected devices they are designed to manage. Yes, while some data are captured from managed devices, what about all of the unmanaged medical devices? What if your coverage was complete, the asset fingerprints were data-rich, continuously updated and synchronized across all IT and clinical systems that hold inventories?
Breaking Down the Costs
According to research, 40% of a biomedical professional’s time is mired in relatively low-value tasks. At Medigate, we have deconstructed typical technology management workflows and pulled-out the manual elements that can be largely eliminated. We’ve done it by job-class so that time/value can be easily calculated. The model we have developed also allows the client to specify a “ramp time” to these same benefits. Of course, all inputs to the model are editable, but we’ve seen consistencies and provide default values based on the averages. Below is an example of a small subset of manual tasks associated with device lifecycle management. In this case, the health system has 1,500 beds and approximately 8,000 unmanaged medical devices (IoMT).
Additional Direct and Indirect Costs to Consider
These time sinks are just one negative byproduct of a disconnected CMMS. Consider the impacts on staff morale and asset utilization, and additionally, the opportunity costs associated with not having already limited staff dedicated to more meaningful work.
Studies have shown that the average utilization of medical devices hovers around 42%. Despite this, most health systems continue to overspend on equipment. In fact, the averages indicate that health systems may overspend by as much as 25%. The ripple effects of poor visibility, slow restaging, and other related workflow inefficiencies are all negative. And the financial ramifications are costly and will increase based on the uptick in device spending that is now occurring (CAGR 20% +).
Medigate’s Clinical Device Efficiency (CDE) module provides a solution. As the newest member of our suite, it provides the long-missing data via a dynamic, live connection to your connected landscape. Furthermore, the integration makes it instantly available to the right people, processes, and other benefitting technologies on a continuously updated basis. The data includes asset identification (managed and unmanaged), location and utilization metrics, so the workflows crossing HIT and HTM all benefit.
For example, with the inclusion of location and utilization metrics, CDE makes savings-based recommendations by identifying: lost devices, retired devices, underutilized rented devices, overutilized devices, devices that have been offline for extended periods, and devices that are past due on their preventative maintenance. The opportunities to improve are presented clearly and the associated gains can be accurately estimated and measured as they are realized.
CDE transforms your CMMS/CMDB into a dynamic, data-rich system of record. The following savings summary reflects both an investment payback period and the total estimated ROI for the 3-year analysis period selected in this case.
For more information on evaluating and measuring the potential benefits of implementing CDE for your environment, please check out our Business Value Analysis Tool.