Survey Shows Hospitals Struggle with Inaccurate Receipt of Supplies, Lost Packages and High Surgical Instrument Costs; New Lawson Products Address Respondents' Top Issues

ST. PAUL, Minn. -- At a time when healthcare providers are struggling with double-digit growth in annual supply costs and thin margins, Lawson Software today announced the general availability of Receiving and Delivery and an upgraded version of Surgical Instrument Management.

Industry analysts estimate nearly half of supply chain process costs are avoidable and these products, both integrated components of Lawson's Supply Chain Management Suite, help hospitals manage resources and productivity. To better understand the industry's needs and challenges related to supply chain cost containment, Lawson commissioned KRC Research to conduct a series of surveys among materials management and operating room decision-makers. The respondents were attendees of the 2004 Association of periOperative Registered Nurses (AORN), International Association of Healthcare Central Service Material Management (IAHCSMM) and the Association for Healthcare Resource & Materials Management (AHRMM) conferences.

The survey revealed that the top issues materials management departments struggle with when trying to improve performance of the receipt and delivery of supplies and parcels are: inaccurate receipt of supplies, receiving packages too slowly, lost packages, denials of supplies/packages delivery by departments, delays in package delivery and materials being frequently out of stock.

When asked how valuable a list of product features would be to the materials management department, the survey participants pointed to the following three as the most important: integration with the materials management system (68 percent stated "Extremely valuable"), proof of delivery (64 percent) and staff productivity reporting (49 percent).

"The ability to control costs associated with receiving and delivery and instrument processing is a critical requirement for improving a hospital's operating margin," said Angie Franks, vice president of healthcare market development, Lawson Software. "Lawson Receiving and Delivery and Surgical Instrument Management address the survey respondents' top priorities by improving service to hospital departments, reducing supply and instrument costs and increasing staff productivity."

With regards to surgical instruments and trays, the survey found that 64 percent of respondent's struggle with high instrument and repair budgets as well as low levels of service from the sterile processing department. Additionally, 53 percent of respondents said they have problems with wasted staff time due to poor management of surgical trays and 52 percent struggle with delayed surgeries due to problems with instruments.

"These survey results demonstrate that the marketplace is eager for products like Lawson Receiving and Delivery and Surgical Instrument Management," said Franks. "Our products provide greater visibility and control over instrument sets, parcels and supplies to help our clients achieve tangible cost savings and improve patient care."

Lawson's Receiving and Delivery and Surgical Instrument Management applications help hospitals optimize their resources and improve their bottom line through more effective management and tracking of supplies, packages and surgical sets.

Lawson Receiving and Delivery

Receiving and Delivery helps materials management departments improve their performance and provide faster, more efficient service to internal customers through more effective receipt and delivery of supplies and parcels. Key benefits include:

-- Self-service package tracking from any computer.

-- Enhance staff efficiency with handheld receiving and delivery management tools.

-- Reduce lost items and unnecessary re-orders.

Lawson Surgical Instrument Management

Lawson Surgical Instrument Management is the only product of its kind to integrate with Lawson Supply Chain Management. Lawson's Surgical Instrument Management helps ensure the correct instruments and trays are available when and where they are needed. Key benefits include:

-- Increase staff performance.

-- Lower instrument repair and replacement costs.

-- Reduce surgery delays and cancellations.

Lawson serves more than 500 healthcare industry clients representing more than 4,500 facilities, including eight of the top 10 integrated delivery networks. The company also serves managed care systems, academic medical centers, hospitals, clinics, physician group practices, home healthcare, long-term care and other health services enterprises. Lawson solutions help healthcare organizations manage their business so they can focus on their patients, automate and streamline materials management for a better bottom line, and overcome the challenges of labor shortages.

About the Survey

KRC Research conducted a survey of 474 operating room and materials management decision-makers who attended the AORN, IAHCSMM and AHRMM conferences in 2004. The sample pool included respondents with the following job titles: OR Nurse/Tech, OR Manager/ Director/ Coordinator, Sterile Processing/Central Services Department Manager/ Director, OR Information Systems Staff, OR Services Manager/Director, Material Management Manager/Director/Vice President, Director/Manger of Purchasing, CFO. Qualifying organizations included stand-alone hospitals, academic medical centers, Integrated Delivery Networks (IDN), and ambulatory surgery centers.

Source: Lawson Software