Does $-5-4-0-M Spell Game-Changer?

Are you a managed service provider who offers some or all aspects of Asset Management: asset optimization, workflow with Lean Six Sigma for demand equipment, maintenance, capital planning, or disposal for healthcare organizations? Do you have personnel in accounts daily?

If so, consider RTLS/RFID...again.  It just keeps coming back. Now, not only is it back - very large, well-funded, and capable companies are competing for business in healthcare.  RTLS is part of their solutions package along with biomedical services, supply chain, Lean/Six Sigma and/or IT infrastructure.

For those clinging to hope that RTLS will just go away again before all the nibbling around the edges gets to the quick of your profit margins – well... that’s likely to force a desperate decision instead of a shrewd one.  What’s changed?  A $540,000,000 maximum payout for the Veteran’s Health Administration’s RTLS weaved into both improving quality and reducing cost.  Success will send a strong positive message from the RTLS/RFID community to the healthcare community about the capabilities of the technology and services.

Your accounts probably pressure profit margins already.  On one hand, hospitals complain about insurance companies nickel and diming them and rejecting payments for what seems more like an excuse than a valid reason.  On the other hand, hospitals kick back your invoices over incidents that clearly indicate problems inflicted by their employees and not covered under the contract.

  

Some managed service companies are partnering up with full service RTLS providers.  The hope is that a managed service company can grow an account by expanding into RTLS.  The agreement is supposed to be a win-win situation.  The full service RTLS provider gets a footprint in the account.  The managed service provider expands its service.  The problem is, the full service RTLS provider may become your competitor.

There may be an alternative.  Managed service providers can offer RTLS without the investment, risk, and resources connected with software development and support. VizBee may be a good choice to consider.

VizBee is an RTLS software company with a particular model.

 1. The most important point, VizBee is not set up to become a competitor.  They sell software.  VizBee can acquire hardware to help expedite a project.  They do not sell Lean/Six Sigma projects.  Nor do they offer other cost savings consultations to hospitals.  A full service RTLS provider does sell these services.  Implementation, training, surveys, a full service RTLS provider will have their people in your account.  Do you really want that?

 2. Vizbee offers two options to the managed service provider:

a. The provider can buy software

b. Vizbee can supply software and hardware (Vizbee will be responsible for the hardware functioning)

- complex projects can be done without coding

- Add more tags and readers without limitations, just increase the license

- Add new applications by updating the license

c. Healthcare modules include:

- Asset/person tracking

- Logistics

- Inventory and warehouse management

- Guard tours

- Task management

- Tracking small surgery tools

- Hygiene: hand washing

- Maintenance management

d. VizBee provides a method of helping to model potential margins

The managed service provider can:

1. Recover the cost over the term of customers’ service contracts.

2. Efficiencies can help improve both the customer’s managed service provider’s operations.

Last, hospitals need help with RFID/RTLS support.  It is not a matter of them being capable.  It’s a matter of increased volume, scope of work, and hours that have resulted in a pay cut.  Managed services have boots on the ground who can provide needed levels of RTLS service.  A full RTLS service provider would have to charge a huge price to accomplish this.

As discussed in Covering Your Assets by Exposing the Butt-Ugly Truth, even though a hospital can save hundreds of thousands of hard dollar with RTLS, they may still be challenged to reinvest some of that money into their own asset management programs.  They may use the savings to pay other bills. 

 - Does it make sense?  I many cases, no.  No reinvestment threatens to weaken the very thing that’s paying the bill.

- Is it a reality? Yes.

- Is it possible to take RTLS off the hospital’s plate and make good business sense? Yes, especially if you provide biomedical equipment technicians, facilities, or IT personnel in accounts daily.

This helps weave the benefits of RTLS technology to reinforce process and help with workflow into healthcare organization’s daily activities and outcomes.  Who better to do this than managed service personnel who know the building, the staff, the processes, and the decision-makers?  The question is, do you really want to wait until what is, basically, a $540,000,000 investment in RTLS marketing to kick in before considering your options?  Or do you want to position with a vendor like VizBee? For more information on VizBee write alfordhardy@gmail.com or call (912)429-5725.