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Cost vs Benefit: Analyzing the Implementation of RFID for Mid-Sized Hospitals

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Trying to achieve better efficiency, improved safety, and visibility of real-time data, many mid-sized hospitals around North America and Western Europe are finding themselves at a technological crossroads.

RFID (Radio Frequency Identification) among the emerging solutions is gaining interest. But could it really be a wise investment for a medium-sized healthcare facility? Just like RFID in retail, tracking the same can be implemented in the hospital, which will make the workflow much efficient and easier for the staff to follow through.

In this post, we discuss the cost implications, foreseeable benefits, and the practical value that RFID systems will add to mid-sized hospitals wishing to improve operations.

  1. Understanding the Role of RFID in Healthcare

RFID technology enters and uses electromagnetic fields for automatic identification and tracking of tags attached to objects or persons. In a hospital environment, these tags can be applied to medical equipment, pharma drugs, staff ID cards, patients’ wrist bands, and even surgical instruments.

Contrary to barcodes, RFID doesn’t need a line of sight directly; this makes it more convenient for a hectic multi-departmental environment. The practical amount of RFID power is that it has real-world tracking of real-time data, making for better visibility of assets, security, and patient care.

  1. Upfront Costs: Expectation of Mid-Sized Hospitals

RFID is not a cheap activity to undertake. Mainstream hospitals of mid-size usually have expenditures in four major fields:

Hardware: RFID tags, readers, antennae, and servers.

Software: Integration platforms that integrate with existing hospital management systems.

Installation & Infrastructure: Upgrades of the network, reader placement, and physical configuration.

Training & Maintenance: Onboarding of staff, constant IT support, and periodic updates.

A basic implementation for a mid-sized hospital (200-500 beds) may range from $250,000 to $1 million, depending on the scope of work. This initial cost usually becomes the greatest obstacle for financially conservative institutions.

  1. Key Benefits of RFID for Mid-Sized Hospitals

There are several measurable benefits that a mid-sized hospital can enjoy by investing in RFID and which can significantly reduce the initial cost that are required to set up the RFID hospital patient trackingsystem, and also the implementation of the same technology at other parts of the hospital.

  1. Better Asset Tracking

Every year, hospitals lose or misplace expensive equipment (IV pumps, wheelchairs, defibrillators, etc). RFID allows for the accurate tracking of these assets, thereby eliminating loss, duplication, and rental costs. This alone can save tens of thousands per annum.

  1. Streamlined Inventory Management

Pharmaceuticals and medical supplies are time-sensitive and expensive. RFID supports automatic stock-level monitoring and expiration monitoring, and proactive replenishment. This saves wastage and enhances inventory control in departments.

  1. Enhanced Patient Safety

RFID wristbands enable the right patient to receive the right medication or procedure. With this, there is a reduction of medication error, more traceability, and help in faster identification of patients, especially in emergency / high volume situations.

RFID eliminates the need for manual stock checks or the search for equipment, so that the staff can concentrate on their main responsibilities. Therefore, for a mid-sized hospital, it’s a worthwhile investment that will yield future returns, resulting in improved patient care.

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