ECRI Blog

Use a Predictive Replacement Plan to Create a Better Capital Replacement Process—and Include these 6 Questions

We all know the adage, the squeaky wheel gets the oil. It can even apply to your hospital’s capital budget planning exercise.

Capital requests include both replacement items for existing equipment and new or additional purchases, and the process tends to move quickly. Unfortunately, the loudest voices usually get the bulk of the available capital dollars, and smaller departments often are left out.

A Predictive Replacement Plan, or PRP, can streamline this process and provide objective recommendations regarding the replacement of capital equipment in a systemic manner.

A PRP is a deep dive into the capital medical inventory of a health care institution which is then used to develop and coordinate an unbiased 5 or 10-year replacement schedule, based on multiple objective factors, including organizational goals and patient needs. It is not based solely on the age of the equipment or the subjective desire or influence of a department director or physician. A PRP is based on multiple objective factors including device recall data, OEM support, part availability from OEM and aftermarket sources, changing technologies, device utilization, and clinical needs of the clinician.

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Topics: Health Devices, Supply Chain, Equipment Planning, Technology Assessment, ECRI, Evidence-based decision making, Leadership, Vaccines, Inventory, predictive replacement planning, Thought Leadership

Supply Chain Shortages Ranked Second Among Top 10 Risks Facing Healthcare Organizations

Posted by Edward Nuber, Director of Marketing, ECRI on Jan 28, 2022

ECRI’s Top 10 Health Technology Hazards for 2022 ranks supply chain shortages among the top three risks facing healthcare organizations. The ranking is for good reason: patient lives may be at risk if essential medical supplies and equipment are unavailable. This risk increases as global supply chain disruption continues to impact healthcare organizations. According to an October 2021 report on healthcare performance, at least 80 percent of hospitals reported supply shortages.

Shortages can stem from the impact of the pandemic, which has sometimes brought manufacturing to a halt. Others are the result of vulnerabilities in traditional supply chain planning, such as keeping limited amounts of products in storage and relying on fast delivery. Weather events and other force majeure incidents also play a role. Together, these create a cascade effect that causes many healthcare organizations to struggle to locate, purchase, and obtain supplies:  

  • Raw material shortages increase prices and reduce output. For example, shortages of resin impact the availability of plastic and magnesium shortages affect the availability of aluminum – causing issues for manufacturers.
  • Suppliers who rely heavily on offshore manufacturers that have been disrupted by the pandemic or global weather events need to find supplies elsewhere.
  • Supply chain practices and other pressures reduced organizations’ stockpiles of critical supplies. “Just-in-time’ supply chain models, designed to reduce the need for physical inventory, are upended when products can’t be sourced or delivered on time.  
  • Logistical challenges, such as ongoing trucking, shipping, and delivery issues brought on by the pandemic, delay delivery of critical supplies.  
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Topics: Risk Management, Health Devices, Supply Chain, Technology Trends, Equipment Planning, COVID-19, Clinical Excellence, ECRI, Clinical Evidence Assessment, Evidence-based decision making, Value-based care, Best-practice evidence-based medicine, Leadership, Inventory

A Better Way to Manage Your Supply Chain Needs

Posted by Edward Nuber, Director of Marketing, ECRI on Aug 25, 2021

During the past year, we were reminded of the critical role that supply chain plays in clinical care and overall operations. While our industry has adapted and grown to weather the COVID crisis, now is no time to return to business as usual. The roller coaster ride has slowed, but not stopped; supply chain still faces tremendous challenges such as product shortages, geo-political implications, increased costs, longer delivery times, worker shortages, lack of transparency, and other inventory challenges. Consider the following:

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Topics: Supply Chain, Technology Trends, Equipment Planning, Clinical Excellence, Evidence-Based Medicine, Clinical Evidence Assessment, Evidence-based decision making, Value-based care, Best-practice evidence-based medicine

Outsmarting an Impossible Medical Equipment Budget

When Washington Adventist Hospital of Maryland hired ECRI Institute to provide equipment planning services for their new 170-bed hospital, they were in a financial bind. Their Certificate of Need (CON) budget for patient care equipment was only $33 million. But, after we completed detailed user group meetings, it was clear that the actual cost for medical equipment would be closer to $65 million.

Our client was not alone in getting caught in the CON budget squeeze. Currently, 35 U.S. states maintain some form of CON program—including all states east of the Mississippi, except Pennsylvania and New Hampshire. CON programs give the state government the power to determine whether there is a need for a new hospital or nursing home before it is approved for construction.

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Topics: Industry Trends, Technology Trends, Equipment Planning

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