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Escalating supply costs are especially challenging because a typical hospital already spends between 15 percent and 25 percent of its annual budget on medical, surgical and pharmaceutical supplies according to industry research firm IDC in its report, Healthcare Cost Containment Through eProcurement and SRM: A Survey of U.S. Hospital Materials Management Professionals, December 2002, document #28413.

"The ability to control costs associated with hospital supplies is a critical requirement for improving hospital operating margins as well as improving quality and clinical outcomes," said Michael Davis, vice president and research area director at industry analyst firm Gartner Inc. "Surgical supplies are some of the highest expense items in the hospital inventory. The ability to use Web-based applications and wireless technologies to perform more efficient supply and instrument management is a key transformational element for improving supply chain operations. Healthcare delivery organizations that implement solutions that deliver these operational benefits will be the best positioned to survive and thrive in their markets."

Lawson Surgical Instrument Management helps hospitals optimize their resources and improve their bottom line through more effective management and tracking of surgical instruments and trays. Specifically, it allows staff to help ensure the correct instruments are available when and where they are needed, preventing delayed or cancelled surgeries. Key benefits include:

• Standardized tray sets and simplified tray assembly processes



• Tray status and location tracking, resulting in fewer urgent instrument searches



• Automatic alerts of deviations in sterilization procedures to prevent instrument damage



• Optimized instrument and tray inventories and improved utilization rates

"Our costs for surgical instruments and supplies just keep going up. It's critical for us to curb those expenses while still providing the highest quality care possible," said Jan Jarvinen, director of Materials Management at Gundersen Lutheran Health System, La Crosse, Wis. "That's why last year we implemented what today has become Lawson's Surgical Instrument Management."

Lawson Par and Cycle Counting enables staff to more efficiently maintain par areas - carts or shelves in hospital departments that contain a set number of supplies - and take inventory of a rotating group of supplies using handheld devices. Integration with Lawson's core Supply Chain Management product facilitates fast, accurate replenishment by automatically sending orders to central supply or vendors when items fall below preset levels. Key benefits include:

• More accurate inventory data transmitted in a wireless, partially wireless or cradle-based environment



• Faster par and cycle counting processes via mobile, handheld devices with quick-scan and keypad entry



• Optimized staff performance and inventory levels, reducing costs and strengthening service delivery

Both applications use industry-standard barcoding, wireless and Internet technologies, including 802.11b - sometimes called Wi-Fi - and the Microsoft Windows CE operating system for handheld devices. Par and Cycle Counting integrates with Lawson Inventory Control and other applications within Lawson's Supply Chain Management Suite. The new products also offer standard and customizable reports to help hospitals track staff productivity and other key metrics.

"By supporting enterprise resource optimization, these new applications will help our customers achieve tangible time and cost savings," said Eric Morgan, executive vice president of Healthcare, Lawson. "The Surgical Instrument Management product extends our functionality into the operating room and offers hospitals greater visibility and control over another key component in the care delivery supply chain - surgical instruments and trays."