Does Asset Tracking Live Up to the Hype?


Author: Matthew Holt
Asset tracking has become a hot technology in the last couple of years. Tracking technology vendors claim that RFID-based systems provide close to instantaneous ROI, by reducing equipment rental costs. Furthermore, even though only a small minority of American hospitals have any kind of asset tracking thus far, the push is already on to extend tracking to medical staff and patients.

One of the main questions is whether WiFi-based tracking is accurate enough to be useful. One vendor, Pango has subtly changed its business model. Its Locator application can now accept signals from “tags” that use various wireless systems in addition to WiFi, such as infrared, 802.15.4, and ultra wideband. This is a tacit recognition that WiFi-based tracking may not be accurate enough for clinical situations.

Ken Lynch, Pango’s director of product marketing suggests that “WiFi tracking may not fit, say in the emergency department, where they might want to track at a much finer level of location granularity” as compared to knowing whether wheelchairs or pumps are on a particular floor. The issue here is that typically non-WiFi-based systems require the installation of separate networks, which cost substantially more.

Even if WiFi is good enough to track equipment and other assets, there are now a few voices out to deflate the hype. Vendors such as Cisco, AreoScout, and Ekahau claim their early clients are seeing good ROI from reductions in equipment loss and reduced rental fees. But in the October and November editions of ECRI’s (Emergency Care Research Institute) Health Devices Journal Jim Keller, ECRI’s VP of health technology evaluation and Chris Lavanchy, health devices engineering director, examined the adoption of asset tracking so far, and concluded that ROI has yet to be proven.

They suggest three basic applications for asset tracking. The first is to locate equipment for preventative maintenance and recalls. The second is to locate assets for clinical purposes. The third is to use asset tracking for inventory and workflow optimization. Essentially, Keller and Lavanchy believe that current WiFi solutions only work for the first application, and they say that’s not enough to cost-justify asset tracking. While these systems have promise, ECRI believes that most of the installations to date are pilots in which the true costs have been hidden.

Their study also suggests that ubiquitous WiFi across hospitals is only available in around 20% of cases, and that management of both the tags and the process of the location tracking is more complex has been suggested. They point to one vendor, Agility, which provides on-site staff for that inventory optimization — not quite a painless, scalable solution.

Keller suggests that for asset tracking “the hurdles are not insurmountable, but today is not the best day to buy if you have a choice. Other more affordable solutions are out there.” ECRI suggests that many hospitals are not doing a good enough job recording the rental equipment they have, which may be a place to look for easier bang for the buck. Perhaps that's why, as Cisco's Frank Grant says, asset tracking has taken off “a little slower than we thought in some spaces.”

Despite the caution, asset management technology seems headed in the right direction. The current third-generation tags are smaller, cheaper, and have longer battery life, and WiFi is becoming more ubiquitous as other technologies -- especially VOIP -- spread throughout hospitals.

Also, a few niche vendors, like Aethon with its new Homer robot, are working to plug the gaps in WiFi networks. In the end, the complexity of managing equipment and people in hospitals is a huge problem. Asset tracking, whether WiFi-based alone or supplemented with other technologies, is likely to be a major part of that solution. 

Want to read more expert articles like this? Send an email to:
subscribe-digital_healthcare_productivity@newsletters.digitalhcp.com

Click here to log in.

0 Comments

Add Comment

Text Only 2000 character limit

Page 1 of 1

White Papers & Special Reports

thomson reuters image
Biomarkers: An Indispensible Addition to the Drug Development Toolkit
Examining the Potential of Biomarkers
Sponsored by Thomson Reuters

Biomarkers are becoming an essential part of clinical development. In this white paper, Thomson Reuters provides insight from experts in industry and academia, and explores the role of biomarkers as evaluative tools in improving clinical research and the challenges this presents.

Discover the potential of biomarkers to:

  • Improve decision making
  • Accelerate drug development
  • Reduce development costs


BlueArc_Scientific Data
Scientific Data Lifecycle Management: Preparing for Storage in an Uncertain Future
Sponsored by BlueArc

Managing vast and overwhelming streams of gene sequencing data today requires ultra-high performance systems and processes. With continued rapid advancement and improvements in gene sequencing, expect tomorrow’s instruments to output quantities of genomic information that will dwarf current levels. Help your organization maintain data control and prepare for the future of sequencing through this informative paper that discusses:

  • The information technology challenges of gene sequencing
  • “Intelligent” methods for data management and customization
  • System survival tips... Deciding what data to keep or delete
  • New tools to keep scientists ahead of impending data torrents


SAS Managed image
Managed Innovation, Assured Compliance
Developing, executing and managing the transformation, analysis and submission of clinical research data with SAS® Drug Development
Sponsored by SAS
Get better products to market faster. Download this white paper to discover the top ten challenges facing life science executives and how to overcome them. See how SAS Drug Development transforms clinical data into true innovation.


Life Science Webcasts & Podcasts

Presented by Trade Commission of Spain

Spain Biotech: An Engine for Economic Change 

TCS podcastDiscover how Spain is focusing on biotechnology to be an engine for economic change through gradual internationalization, development and technology transfer.

Regional governments are actively investing in public and private biology research and promoting the creation of knowledge-based companies. Spain’s human capital combined with aggressive investment in biotech research and infrastructure has led to the creation of bio-clusters.

Today, there are nearly 700 Spanish companies engaged in biotechnology, with almost 50 percent growth in funding devoted to research. In fact, spending on internal R & D in biotechnology has grown 46 percent and is close to 300 million Euros.

Access the podcast 

 



More Podcasts

Job Openings

saic_logo

MANAGER, SCIENTIFIC COMPUTING & PROGRAMMING
(Bioinformatics Manager)
SAIC-Frederick, Inc has an exciting opportunity for a Manager, Scientific Computing & Programming - Core Genoytyping Facility in Gaithersburg, Maryland.  In this role, you will lead the Bioinformatics & Analysis Group.
Master’s or equivalent required.  PhD preferred. Six years experience in development of scientific programs in high-performance computing environment including five years supporting scientific research in computational chemistry, biology, or genetics, & two years supervisory experience.  View complete job posting & apply: www.saic-frederick.com. Position #146945.

For reprints and/or copyright permission, please contact The YGS Group, 1808 Colonial Village Lane, Lancaster, PA;

(717) 399-1900 ext. 125, or via email to Ashley.Zander@theYGSgroup.com.