How much inventory should you keep on hand is a frequently asked question. The answer is not always black and white, but there are some factors to consider when making this decision. Do you have a plan to balance the needs of your facility, while staying on budget?
This week we are discussing factors to consider when deciding what the appropriate inventory levels should be. This is another topic that isn’t necessarily exciting, but it’s critically important to the operation of an ambulatory surgery center (ASC).
COVID-19 has required us to make many adjustments. We have updated some of our protocols, but we have also had to develop many new processes. If you weren’t already doing it, you should now be making determinations on inventory levels for medication and medical supplies as part of your continuity of care plan.
How much inventory should you keep on hand?
When it comes to inventory, the Goldilocks principle comes to mind. We want to have enough so that we can care for our patients without any delay or disruption, while at the same time avoiding too much overhead. Not having enough on hand, not only causes potential delays or disruptions, but it can also introduce patient safety concerns when alternatives are introduced. On the other hand, having too much inventory, although reassuring, is expensive and can lead to waste.
Steps to improving inventory management:
- Know your numbers: Proper inventory management requires having a good handle on your numbers. There are many important numbers to know and monitor, but none is more important than knowing what you have on hand. Take inventory of your medications and medical supplies and then keep up with it. Whether manually or via an electronic management system, you should be able to determine what is in the facility at any given time. On a regular basis, compare what’s in your records to what is on the shelves.
- Know your “best sellers”: We all know there is a relatively short list of medications that are used daily and in high volume. Make sure you have plenty of these on hand. If it is frequently used, a drug shortage could quickly cripple your operation if you don’t have enough on hand. This is a balancing act, but it’s okay to have little more of these medications on hand since they are frequently being used and are unlikely to expire prior to being needed.
- Know your dates: Develop a system and have your staff check all items at least monthly for expiration. This serves two purposes; first, you avoid keeping expired inventory on hand, which has implications on patient safety and often results in survey deficiencies. Second, it can serve as a warning system to allow you to use products that are near expiration before they expire. It’s important that all products be properly rotated to avoid using the product with the longest expiration date first.
There are many variables involved in proper inventory management. Knowing how much inventory you should keep on hand is a dynamic situation and requires ongoing vigilance and adjustments. The ongoing issue with drug shortages complicates this picture, but if you establish a system based on the items above, you will be less likely to encounter disruptions, delays, or cancellations. Your pharmacy consultant should be able to guide you through this process and provide ongoing support with shortages and potential solutions. If you need help setting up an inventory system, or if you would like an assessment, please reach out to us.
The Consultant Pharmacists at OctariusRx provide guidance on safe medication management, survey readiness and cost savings to ambulatory healthcare facilities/surgery centers, senior care facilities and pharmacies. We also help individual patients optimize their medications to improve their quality of life and save money. Contact us for assistance.
