Two overlooked opportunities for cost savings in Healthcare: efficient use of space and reductions in workers comp costs

Increasing focus on the revenue derived from operating rooms and special procedures departments has lead to severe loss of space and less capital for the basic needs of the Central Supply and equipment storage departments which are required to support the ever-growing surgical and special procedures needs. The increasing volume of supplies required to be on-hand to support the high demands of these departments exacerbates the already tight space availability for Central Supply and Materials Management. To balance this equation of less physical space plus more supplies in inventory, products such as high-density shelving have been introduced.

High-density storage solutions are one option for increasing storage space without increasing actual physical space. The term “high-density storage” applies to any type of storage which allows for more square feet of overall storage space to be incorporated into an existing space and is also referred to as “Overhead mobile storage” or “Track system storage”. These high-density storage products consist of a series of shelving units on casters which are affixed to an over-head track. This track is supported by stationary storage end units. This configuration allows the mobile shelving units to be “slid” along the track creating a “pass though” aisle between any two shelving units for quick and easy access to any shelf without congestion.

We have designed custom configurations of our high-density storage systems which have increased the existing storage space to accommodate up to 40-80% more supplies than with traditional storage shelving. High-density shelving not only saves space and creates savings in “real estate”, but the mobile units are easy to move.Even when fully loaded, heavier shelving units can be fitted with optional “assisted” motion drives to further eliminate stress, strain and possible injury to the employee.

Further, the entire concept of high-density storage allows employees to reach products on easily accessible shelves, eliminating much of the stress and strain caused by heavy over-head lifting – a leading cause of employee injury in healthcare and increased Workman’s Compensation costs to the healthcare facilities.
The rising costs of employee injuries throughout the hospital is a continuing cost burden and one, which considering the demographics of the healthcare workplace, is escalating. One report from OSHA in Pennsylvania shows Workman’s Compensation in hospitals increasing 10% annually. The bulk of these injuries are induced by pushing, pulling and reaching, which are inherent in the job of the healthcare worker.

Healthcare has been on the forefront of adapting new technologies to increase revenue capture and reduce costs in the supply chain. There have also been great advances made in protecting employees when lifting and moving patients and yet one area which has been neglected, but which could yield to great cost savings, is to simply reduce injuries related to the stress and strain of moving supplies, equipment and patient in beds or stretchers throughout the facility.

The average cost of a back injury related workers comp claim can be $40,000 - $80,000 per employee. The direct employee costs include musculoskeletal injuries, cost of turnover (hire and train replacement employees), over-time and temporary help, days away from work, transition duty days, sick days used, and administrative costs of handling compensation claims. Indirect costs such as employee satisfaction and efficiency must also be taken into account.

Equipment modification and new technologies in equipment need to be implemented to achieve reduced employee injury rates. Studies show that the reduction in workman’s compensation injury claims effectively recovered the initial capital investment in equipment and training in slightly less than three years and potentially faster if indirect costs are considered. (An Evaluation of a “best practices” musculoskeletal injury prevention program in nursing homes- JW jcCollins, L Wolf, JBell, B. Evanoff as appared in INj Prev 2004: 10:206-211 BMJ Publishing)

Equipment modifications can be as simple as choosing the right equipment to match the job. For example, we have found significant reduction in the injury-causing force required to move linen and supply carts by simply ensuring that the right caster is chosen for the supply cart being used. The introduction of the newest equipment technologies include power-assisted cart, equipment and bed movers, which are 1/5 to 1/10 of the cost of a single workerman’s comp back injury and significantly reduce injury, wear and tear and basic staffing costs.

Some preconceived barriers to purchasing equipment may include cost, concerns about safety, storage of the equipment and time required to use the equipment, yet a study on preventing nursing back injuries confirms these barriers can be overcome by achieving staff buy-in, compliance with policies requiring use of assistive equipment and then demonstrating the reduced injury rates which result. (Nelson AL, Lloyd J Menzel N et al AAOHN Journal 2003; 51: 125-34)

Aggressively pursuing and capturing these bottom line benefits, in light of a declining work force, escalating cost of facilities and employee injuries, will be a significant element of the DNA of top performing healthcare organizations in the future.