3 Benefits of AI-Driven Data in the Surgical Implant Supply Chain
March 22, 2021
Hospitals and healthcare systems increasingly rely on digital data to make operational and clinical decisions. However, the sheer volume of incoming data can be overwhelming, particularly around surgical procedures involving implantable devices. This can often leave leaders unsure of how to best use that data to inform operations around surgical implant supply chain and financial planning. But, the future of robust, AI-driven data is still very much in its infancy. That means we are still at the earliest stages of its effects on hospital operations and cost efficiencies, and how effective these measures will be towards improving all the operational, technical, and financial variables which ultimately are meant to improve surgical implant patient outcomes.
Here are three ways that hospitals and healthcare networks can leverage the power of AI-driven data to improve surgical implant supply chain, operations, and revenue cycle management.
Improve supply chain management
Supply chain management is often considered one of the most inefficient areas within the medical technology space inventory management being the key areas that need improvement. Operating metrics like asset turnover, Days Inventory Outstanding (DIO) and Cash Conversion Cycle (CCC) are among the factors that need to be optimized.
Analysis by A&M on opportunities in MedTech reveals that the CCC runs at an average of 109 days, compared to 37 in the automotive industry. DIO, meanwhile, is at 77 days in MedTech as opposed to 63 in automotive, with a larger number of SKUs. While European MedTech companies run at a Days Sales Outstanding (DSO) average of 60 days, best practice in the automotive industry is 29 days.
In order to optimize DIO, surgical implant procurement teams at hospitals and healthcare networks need to be able to accurately analyze, predict, and report on surgical implant ordering and billing trends. An automated, AI-driven solution can provide Materials Management teams with valuable data to prevent tying up cash-flow, make accurate projections, and avoid risking limited stock or potential issues in production lines along the supply chain.
Optimize revenue cycle management
A key to improving financial results for any healthcare network or a specific facility is to ensure an accurate charge capture process. Data errors related to surgical implants, even errors relatively benign, such as errors in the date of service, the name of the performing surgeon, or details around the implantable medical device model number, can lead to delays in reimbursement.
By aggregating surgical implant billing data with AI-driven software, charge capture errors can be found and fixed far more quickly and easily, facilitating a seamless and accurate billing and reimbursement process.
Reduce surgical implant billing errors
Though most hospitals and healthcare networks focus on reducing operational costs, they miss the added costs from reimbursement delays due to charge capture errors. An automated, AI-driven billing and procurement management solution would be able to track, find, and fix errors before they pose a problem in the billing process. Whether the error occurred from the device rep, a billing team member, or further along the supply chain, or even at the payer level, a smart, cloud-based online solution can help mitigate the costs associated with administrative errors.
Data obtained from a digital billing solution can help identify significant variances or differences in the surgical implant invoice from the medical device rep, or from the invoice from the facility, or even the receipt from the manufacturer. These variances highlight opportunities to standardize the surgical implant billing process, and immediately reduce significant, and often, costly human errors.
By pursuing this data-driven approach, hospitals and healthcare networks can vastly improve their own cash-flow and operational concerns by enhancing reimbursement and finding significant opportunities to decrease costs. But, they can also have a great impact on patient outcomes. The key is having a solution that can deliver the critical data that enables this level of improvement, and knowing how to leverage that data to make the right decisions.
To learn more about how an AI data-driven surgical implant billing solution can help your healthcare facility improve operations and reduce costs, contact us for more information.