Pitch

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

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

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

Current Hospital Supply Chain

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

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  - One Deloitte study found 24% of clinical staff witnessed the use of expired or outdated supplies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

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