39320997 Hospital Inventory Its Importance

8/3/2019 39320997 Hospital Inventory Its Importance

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HOSPITAL INVENTORY & ITSHOSPITAL INVENTORY & ITS

IMPORTANCEIMPORTANCEThose in the field of hospital administrationThose in the field of hospital administrationare very concerned about the rising costare very concerned about the rising cost

of patient care.of patient care.


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The goal of financial and costThe goal of financial and costmanagement in a hospital is to ensuremanagement in a hospital is to ensure

that the community is provided with thethat the community is provided with theservice it needs at an acceptable level ofservice it needs at an acceptable level ofquality and at an optimum cost.quality and at an optimum cost.


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Materials constitute about 50 per cent ofMaterials constitute about 50 per cent ofthe total expenditure of hospitalthe total expenditure of hospital

administration.administration.


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The optimum utilization of these resourcesThe optimum utilization of these resourcesmust be ensured in order to achieve amust be ensured in order to achieve a

high level of productivity. The hospitalhigh level of productivity. The hospitalpharmacy is indispensable for thepharmacy is indispensable for thetreatment of patients and efficiency in thistreatment of patients and efficiency in thisfield would provide service to them at anfield would provide service to them at an

acceptable level of quality and at anacceptable level of quality and at anoptimum cost.optimum cost.


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A thorough understanding and use ofA thorough understanding and use oftechniques of materials managementtechniques of materials management

would help in achieving this bywould help in achieving this bydetermining the categories of stockdetermining the categories of stockrequired in terms of quantity from variousrequired in terms of quantity from varioussources, at low prices.sources, at low prices.


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They should develop an effectiveThey should develop an effectivemechanism in order to enforce control onmechanism in order to enforce control on

the build up of inventory and its use so asthe build up of inventory and its use so asto ensure the best use of the resources.to ensure the best use of the resources.


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FollowFollow--up measures should be carried outup measures should be carried outon a daily or weekly basis. Regardingon a daily or weekly basis. Regarding

these drugs, plans should be made for thethese drugs, plans should be made for thequantity, quality and timing of purchase.quantity, quality and timing of purchase.Efforts to increase the number of sourcesEfforts to increase the number of sourcesand reduce the lead time for supplyand reduce the lead time for supply

should be taken up.should be taken up.


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Stocking of drugs is based on strategiesStocking of drugs is based on strategiesdifferent from those of other classifications.different from those of other classifications.

Vital drugs should be stocked adequatelyVital drugs should be stocked adequately

to meet emergencies. Some risks can beto meet emergencies. Some risks can betaken in the case of essential drugs.taken in the case of essential drugs.

Desirable drugs have substitutes and areDesirable drugs have substitutes and areeasily available in the market.easily available in the market.


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Difference in HOSPITAL MM&Difference in HOSPITAL MM&

ENGG. INDUSTRY MMENGG. INDUSTRY MM HMM(Hospital Materials Management)HMM(Hospital Materials Management)

Materials requirement is continuous, sinceMaterials requirement is continuous, since

work in a hospital goes on throughoutwork in a hospital goes on throughout the day, all 365 days in a year.the day, all 365 days in a year.


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HMMHMM

Medical items:Medical items:

1.Pharmaceutical, surgical, consumable and1.Pharmaceutical, surgical, consumable and

protective.protective.2. Capital equipment and accessories.2. Capital equipment and accessories.3. Electrical/mechanical/civil material for3. Electrical/mechanical/civil material formaintenance work.maintenance work.

4. Catering items.4. Catering items.

5. Housekeeping material.5. Housekeeping material.6. Linen/Uniforms/clothes.6. Linen/Uniforms/clothes.7. Office equipment.7. Office equipment.

8. Printing and stationery8. Printing and stationery


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CHARACTERISTICS OF MATERIALCHARACTERISTICS OF MATERIALREQUIREMENTREQUIREMENT

HMMHMM

Material requirement is very critical. NonMaterial requirement is very critical. Non--availability of a particular material can cost aavailability of a particular material can cost ahuman life, for example, the nonhuman life, for example, the non--availability ofavailability ofoxygen or of lifeoxygen or of life--saving drugs. When the patientsaving drugs. When the patient

suffers for want of materials, the buyers feelingsuffers for want of materials, the buyers feelingof guilt will be acute.of guilt will be acute.


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QUALITY OF MATERIALSQUALITY OF MATERIALS

HMMHMM

The quality of materials purchased isThe quality of materials purchased iscritically important. Subcritically important. Sub--standard qualitystandard quality

materials cannot be tolerated. For example,materials cannot be tolerated. For example,use of contaminated disposable plasticuse of contaminated disposable plasticsyringes will cause a dangerous reaction insyringes will cause a dangerous reaction inthe patients; infected blood can causethe patients; infected blood can causehepatitis and AIDS.hepatitis and AIDS.


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MATERIAL INSPECTIONMATERIAL INSPECTION

HMMHMM

The hospital has no separate quality controlThe hospital has no separate quality control

department to certify the quality of materialdepartment to certify the quality of materialpurchased. Medical items purchased for eachpurchased. Medical items purchased for eachdepartment have to be checked by specialistsdepartment have to be checked by specialistsin that particular department. It is impossiblein that particular department. It is impossible

to run a quality control department employingto run a quality control department employingspecialists in various specialities, such asspecialists in various specialities, such ascardiology, nephrology, dentistry, and so on.cardiology, nephrology, dentistry, and so on.


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PURCHASE DECISIONSPURCHASE DECISIONS

HMMHMM

Doctors play a dominant role in purchaseDoctors play a dominant role in purchasedecisions.decisions.


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IMPORT PROCEDURESIMPORT PROCEDURES

HMMHMM

Import procedures with respect to hospitalImport procedures with respect to hospitalmaterials is simpler when compared to importmaterials is simpler when compared to import

of regular industrial materials. It is alsoof regular industrial materials. It is alsopossible to get customs duty exemption forpossible to get customs duty exemption foractual users.actual users.


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BASIS FOR MATERIALBASIS FOR MATERIALREQUIREMENTREQUIREMENT

HMMHMM

Requirement of materials is based on the inflowRequirement of materials is based on the inflowof patients, which in turn depends on severalof patients, which in turn depends on several

factors, such as the reputation of the hospital,factors, such as the reputation of the hospital,the climate, holidays, the financial capacity ofthe climate, holidays, the financial capacity ofthe potential patient, etc. Therefore, materialsthe potential patient, etc. Therefore, materialsrequirement planning is difficult to carry outrequirement planning is difficult to carry out


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SPARES PLANNINGSPARES PLANNING

HMMHMM

Spares planning for sophisticated equipment isSpares planning for sophisticated equipment isdifficult because of the high rate ofdifficult because of the high rate of

obsolescence in the biomedical field.obsolescence in the biomedical field.


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LOSS OF EFFICACYLOSS OF EFFICACY

HMMHMM

Expiry dates play an important role in the caseExpiry dates play an important role in the caseof hospital materials. Oxygenerators,of hospital materials. Oxygenerators,

cardiotomy reserviors used in open heartcardiotomy reserviors used in open heartsurgeries cannot be used after the expiry date.surgeries cannot be used after the expiry date.Most of the drugs purchased have a finite shelfMost of the drugs purchased have a finite shelflife beyond which they cannot and should notlife beyond which they cannot and should notbe used.be used.


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DOCUMENTATION PROCEDURESDOCUMENTATION PROCEDURES

HMMHMM

Implementation of controls and documentationImplementation of controls and documentationprocedures is difficult, because doctors,procedures is difficult, because doctors,paramedical staff, such as, nurses, dieticiansparamedical staff, such as, nurses, dieticiansand hospital administration staff, have to beand hospital administration staff, have to beconvinced and won over, which takes aconvinced and won over, which takes aconsiderable amount of time and effort.considerable amount of time and effort.


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SKILL TRANSFERSKILL TRANSFER

HMMHMM

Transfer of materials management skill from aTransfer of materials management skill from anonnon--hospital organization to a hospital ishospital organization to a hospital is

almost impossible. Hence, this skill has to bealmost impossible. Hence, this skill has to bedeveloped, nurtured and retained in situationdeveloped, nurtured and retained in situation


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Computerization of inventory managementComputerization of inventory managementbrings a great deal of efficiency to anbrings a great deal of efficiency to anorganization, more so to a hospital. Aorganization, more so to a hospital. Avariety of computer programmes forvariety of computer programmes forinventory management, for different sizesinventory management, for different sizes

and needs, are available in the market,and needs, are available in the market,which can be adapted to the requirementswhich can be adapted to the requirementsof a hospital.of a hospital.


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In an urban area, justIn an urban area, just-- inin--time inventorytime inventory

policies can be easily applied because ofpolicies can be easily applied because ofthe availability of several distributors andthe availability of several distributors andthe keen competition among suppliers. Inthe keen competition among suppliers. Inthis context, networking among thethis context, networking among the

materials management departments ofmaterials management departments ofhospitals in urban areas will increase theirhospitals in urban areas will increase theirefficiency and bring down their cost ofefficiency and bring down their cost of

operations.operations.


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ObjectivesObjectives

The objectives of the materials department are to:The objectives of the materials department are to:

1. Purchase materials in time and as required by the1. Purchase materials in time and as required by theuser departments for theuser departments for the

2.smooth functioning of the hospital.2.smooth functioning of the hospital.

3. Maintain optimum levels of stock in order to avoid3. Maintain optimum levels of stock in order to avoidwastage, scrap and obsolescence.wastage, scrap and obsolescence.

4.Keep in contact with user departments to ensure that4.Keep in contact with user departments to ensure thatthe quality supplied to them is of specified standards.the quality supplied to them is of specified standards.

5. Procure the specified material for the best or5. Procure the specified material for the best oracceptable price to make it available in time and to theacceptable price to make it available in time and to theright user.right user.

6. Maintain good vendor relationship.6. Maintain good vendor relationship.


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Typically, the type of materials usedTypically, the type of materials usedin a hospital can be classified intoin a hospital can be classified intoMEDICALMEDICAL

AndAnd

NONNON--MEDICAL ITEMSMEDICAL ITEMS


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MEDICAL ITEMSMEDICAL ITEMS

1 Capital Equipment, such as X1 Capital Equipment, such as X--Ray, CAT ScanRay, CAT Scanand MRI.and MRI.

2 Expensive materials that are actually2 Expensive materials that are actuallyconsumables, such as Stent, which is used inconsumables, such as Stent, which is used incardiac surgeries.cardiac surgeries.

3 Consumables, such as IV fluids, catheters,3 Consumables, such as IV fluids, catheters,syringes, gloves, drugs and medicines , whichsyringes, gloves, drugs and medicines , whichare under the purview of the pharmacyare under the purview of the pharmacy

department.department. 4 Consumables used in the operation theatre,4 Consumables used in the operation theatre,

such as surgical items, dressings, gauze, cottonsuch as surgical items, dressings, gauze, cottonwool, pads, masks and gowns.wool, pads, masks and gowns.


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NONNON--MEDICAL ITEMSMEDICAL ITEMS

1. Housekeeping1. Housekeepinglinen, toiletries, washinglinen, toiletries, washingmaterials and blankets.materials and blankets.

2. Printing and stationery2. Printing and stationerynote pads, doctorsnote pads, doctors

pads, OHP sheets and record books.pads, OHP sheets and record books.

3. Food and beverage3. Food and beveragevegetables, grocery andvegetables, grocery andkitchen items.kitchen items.

4. Engineering and maintenance4. Engineering and maintenancespares andspares andrepair parts for the upkeep ofrepair parts for the upkeep of

5.capital items, tools and testing instruments.5.capital items, tools and testing instruments.


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The materials department may be dividedThe materials department may be divided

functionally into the purchase departmentfunctionally into the purchase departmentand the stores department, for effectiveand the stores department, for effectivecoordination. The organisation chart iscoordination. The organisation chart isshown in Figure shown in the next slide.shown in Figure shown in the next slide.


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MAIN STOREMAIN STORE

The main store supplies materials to allThe main store supplies materials to allother stores in the hospital. Materials areother stores in the hospital. Materials areaccepted by the store through a deliveryaccepted by the store through a deliverychallan, which is stamped as received.challan, which is stamped as received.Before accepting them, items areBefore accepting them, items areinspected, and those which are damagedinspected, and those which are damaged

and rejected are returned to the supplier.and rejected are returned to the supplier.


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After the inspection, aAfter the inspection, a STORES RECEIPTSTORES RECEIPTVOUCHER(SRV)VOUCHER(SRV) is prepared, based on theis prepared, based on thedelivery challan. Materials are issueddelivery challan. Materials are issuedagainst materials requisition slip to theagainst materials requisition slip to theuser department. In the stores, items areuser department. In the stores, items arearranged department wise, with numericarranged department wise, with numeric

codes for item groups.codes for item groups.


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Twice a week, the stock levels of items inTwice a week, the stock levels of items inthe radiology, nephrology, cardiology,the radiology, nephrology, cardiology,laboratory services and housekeepinglaboratory services and housekeepingdepartments are sent to the purchasedepartments are sent to the purchasedepartment.department.


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The main store holds over approximatelyThe main store holds over approximately1,500 items, which cost over Rs 45 lakh a1,500 items, which cost over Rs 45 lakh amonth. The most expensive item is themonth. The most expensive item is thepacemaker and arterial stent, which arepacemaker and arterial stent, which arevalued at Rs 60,000 a piece. The fastestvalued at Rs 60,000 a piece. The fastestmoving items are soaps and tissue paper.moving items are soaps and tissue paper.

About 100 suppliers may provide serviceAbout 100 suppliers may provide serviceto a wellto a well--developed subdeveloped sub--metro citymetro cityhospital.hospital.


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OT, LABORATORY AND CATH LABOT, LABORATORY AND CATH LABSTORESSTORES

These stores receive materials from theThese stores receive materials from themain store. They are open for two shifts inmain store. They are open for two shifts ina daya day8 am to 8 pm. The stock of8 am to 8 pm. The stock ofmaterials is taken on a daily basis. Cathmaterials is taken on a daily basis. CathLab and OT stores prepare trays for eachLab and OT stores prepare trays for eachcase requisitioned. Each tray has acase requisitioned. Each tray has a

collection of items as per the orders of thecollection of items as per the orders of theconcerned doctor.concerned doctor.


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In the OT stores, about 300 items are heldIn the OT stores, about 300 items are heldin store, carrying a value of over Rs 20in store, carrying a value of over Rs 20lakh. The most expensive item is injectionlakh. The most expensive item is injectionSupacef, and the fastest items are IVSupacef, and the fastest items are IVfluids, syringes and gloves.fluids, syringes and gloves.


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On an average, a stock of one monthsOn an average, a stock of one monthsconsumption is held in the laboratory storeconsumption is held in the laboratory storeand the cath lab store. The OT store holdsand the cath lab store. The OT store holdsitems needed for one month ofitems needed for one month ofconsumptionconsumption


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FOOD AND BEVERAGE STOREFOOD AND BEVERAGE STORE

Items for both daily and monthlyItems for both daily and monthlyconsumption are stored in the food andconsumption are stored in the food andbeverage department. Vegetables andbeverage department. Vegetables andperishables are received directly by theperishables are received directly by thestore. Vegetables bought by the dailystore. Vegetables bought by the dailyconsumption store are purchasedconsumption store are purchased

according to an estimate.according to an estimate.


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Perishable items are stored in thePerishable items are stored in therefrigerator. Emergency purchases arerefrigerator. Emergency purchases aremade by sending an internal office memomade by sending an internal office memoto the purchase department, and laterto the purchase department, and latercollecting cash for the expenses incurred.collecting cash for the expenses incurred.


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The food and beverage store stocks overThe food and beverage store stocks over250 items for about 10 days of250 items for about 10 days ofconsumption. Vegetables are cleaned withconsumption. Vegetables are cleaned withcold water. Utensils, serving plates,cold water. Utensils, serving plates,spoons, tumblers, and so on, arespoons, tumblers, and so on, aresterilised. Leftover food is given away insterilised. Leftover food is given away in

sealed polythene bags.sealed polythene bags.


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DocumentationDocumentation

This section lists the major files that areThis section lists the major files that aremaintained in the materials department,maintained in the materials department,

and the items of information collected inand the items of information collected ineach of them.each of them.


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Materials stock fileMaterials stock file

Name of item Name of item

Code number Code number Class (A, B, C) Class (A, B, C)

Lead time to procure Lead time to procure

Stock as on previous order Stock as on previous order Value of item as on previous order Value of item as on previous order Unit price for previous order Unit price for previous order


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Approved list of vendors fileApproved list of vendors file

Name of item Name of item

Name of the supplier Name of the supplier Supplier codeSupplier code

Lead time for the item Lead time for the item

Price at which previously purchased Price at which previously purchased


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Purchase Order Master filePurchase Order Master file

Copy of all purchase Order released will beCopy of all purchase Order released will be

filed chronologically for reference.filed chronologically for reference.


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Requisition slipRequisition slip

Department making requisition Department making requisition

Date Date Name of item Name of item

Quantity required Quantity required

When required When required


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Inspection reportInspection report

Date Date

Item inspected Item inspected Method of inspection Method of inspection

Name of supplier Name of supplier

Passed Passed Rejected/sent back Rejected/sent back


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Issue registerIssue register

Date Date

Item name Item name Opening stock Opening stock Quantity issued Quantity issued

To whom issued To whom issued

Closing stock Closing stock


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SkillsSkills

The specific skills needed to manage aThe specific skills needed to manage astore arestore arethe person should be honest,the person should be honest,meticulous, efficient and intelligent; themeticulous, efficient and intelligent; theperson should have the necessaryperson should have the necessarypatience and readiness required to handlepatience and readiness required to handlequeries from user departments about thequeries from user departments about the

availability of material, reason for theavailability of material, reason for thedenial of a request and reasons for anydenial of a request and reasons for anydelay.delay.

39320997 Hospital Inventory Its Importance

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