US Hospital Market Overview
(American Hospital Association. ‘20)
  • 6093 Hospitals/920, 531 beds
  • Annual Spend of $1.1T
  • Target grouping sm fewer 100 Mid 100-499, Large 499+
  • Gartner report sighted that 37.% of total cost of patient care was attributed to supply chain spend
  • Supply Chain Management Systems (SCM) can reduce cost
    • 60% reduction in backorders
    • 30% reduction in logistics and handling
    • 20% reduction through better pricing
  • 95% of 39 US health providers said they wanted an increase to planning and more than half don’t have a plan for it
Current SCM Solutions
  • Barcode Scanners (Wavemark, Tecsys, BlueBin, Oracle)
    • Nurses pull materials using scanner
    • System updates use, ordering and provides visibility
    • Additional time required by staff
  • Weight Based System (Identi)
    • Overly sophisticated
    • Hard to manage and recalibrate
  • Traditional KANBAN two bin systems

As noted previously, hospitals see value in analytics as noted by Gartner, Deloitte and other studies going back years.


Current Hospital Supply Chain

Annual Spend
  • SM Pa’s IRMC
    • 10 storage rooms/$57M spend with 200 bins/room
  • Med UC Health
    • 400 storage rooms/$50M spend with 125 bin average/room
  • Large Northwestern University Hospitals
    • 1000+ storage rooms/$1B spend with 100+ per storage room, 100,000+ bins, several additional clinics as well managed by high cost nursing staff

Some rooms very small. Little correlation between bins/room and spend per hospital/size as of yet

All have a manual front end
All see the value in analytics
All understand the value of insight for best practices and negotiation

Cost of Daily Counting

  • UC Health estimated at $2100 daily/$63000/month*
    ● NWH estimated at over $5000/day or $150k per month*
    • Nurses cost more
    • Loaded labor/FTE $28/hr for non clinical staffCounting is done by physically observing empty
  • bins then using a handheld scanner to order refill
  • Information confidence is low/empty only INFO
  • Analytics based on use only
  • Hospitals still forced to use dated two bin KANBAN system
  • Substantial nursing issues with hoarding and lost time and patient care due to running out of product
  • Substantial two digit waste for lost or expired products 12-18% (25% clinical staff have used or witnessed using expired products with patient)

* figures confirmed by hospital supply chain leadership


How do the economics work?

Prevalent Hospital Issues Post Covid

  • Labor shortage/Increased labor cost

  • Supply chain accuracy identified as a way to cut costs and improve efficiency

    • backlog/waste/inefficient use

      • One Deloitte study found 24% of clinical staff witnessed the use of expired or outdated supplies

      • Of 400k surveyed nurses, physicians, service line leaders and supply chain admin, 2/3rds said they have experienced data related challenges (quality, availability and integration issues)

What is the financial story?

  • Cost reduction 37% of patient care are supplies; SCMs can:

    • 60% reduction in backorders

    • 30% reduction in handling costs

    • 20% reduction in improved pricing

    • Double digit waste reduction (for a mid sized hospital this can be millions)

  • 50% LABOR reduction with Intellibinz

    • Eliminate upfront counting FTEs

    • More accurate data

    • Ability to proactively set alerts

    • Reduction in supply hoarding

    • Reduction in supply department theft

    • Improved staff morale and workload

    • Mid sized hospital saves $60+K/month in labor alone

How the Intellibinz solution works
Intellbinz Camera System
  • Custom install of Intellibinz camera strip above bins in storage racks

  • Pics taken, routed to Intellibinz Cloud

  • Daily, hourly pic options
Intellibinz Engine
  • Pics checked via database determining status
    • full/empty, phase 2 thresholds, phase 3 counts

    • Value returned via engine updating database for order status by product/room/location

    • Info sent to customer updating their order requirements, removing upfront labor $$

    • Intellibinz updates database for analytics/insight solution

  • Intellibinz database analysis for predictive insight across organization
    •  Info provides hospital groups the ability to negotiate more favorable contracts (Deloitte study 20% cost reduction)
    • Predictive analytics will help storage room thresholds preventing waste and inefficiencies
    • Waste reduction reduced by double digits through SCMs
    • Comparable analysis for best practices preventing backorders
    • Improved budgeting across supply chain/across organization

Go To Market Strategy