Tag Archives: real time asset tracking

Calculating a hospital’s RoI for RTLS

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A common argument from the hospital management is that RTLS is too expensive for the hospital to adopt. We asked an expert to provide us a simple ROI analysis for a 350-bed hospital to demonstrate how long it takes for a hospital to break even.

Let’s get the assumptions out

  • Current Bed Utilization:
    • 70% of the time, bed utilization is below 70%.
    • Current average bed occupancy is estimated at 65%.
  • Time Savings:
    • Implementing RTLS is expected to save 2 hours/day in equipment search time.
  • Staff Costs:
    • Average hourly wage of hospital staff is ₹600.
  • Increased Revenue from Improved Bed Utilization:
    • By improving patient flow, it’s assumed that the hospital can increase utilization from 65% to an average of 75%, impacting overall admissions positively.
  • Operational Costs:
    • Annual operating costs for RTLS maintenance are estimated at ₹8,00,000.

Investment for RTLS

1. Initial Investment

a. RTLS Software and Hardware Costs

  • Software Licensing: ₹20,00,000
  • Hardware (tags, sensors, etc.): ₹30,00,000
  • Installation and Integration: ₹10,00,000
  • Training and Support: ₹5,00,000
  • Total Initial Investment: ₹65,00,000

2. Annual Operating Costs

  • Maintenance and Updates: ₹5,00,000
  • Support Services: ₹3,00,000
  • Total Annual Operating Costs: ₹8,00,000

Expected Annual Savings

a. Insights into Equipment Usage

  • Reduction in Equipment Search Time:
    • Time saved: 2 hours/day
    • Staff cost savings: ₹600/hour x 2 hours x 365 days = ₹4,38,000

b. Insights into Patient Flow

  • Improved Bed Turnover Rate:
    • Average occupancy increased from 65% to 75%.
    • Additional revenue from increased admissions:
      • Current Occupancy: 350 beds x 0.65 x 365 days = 84,875 patient days
      • New Occupancy: 350 beds x 0.75 x 365 days = 96,375 patient days
      • Additional patient days: 96,375 – 84,875 = 11,500
      • Average revenue per patient day: ₹2,500 (assumption)
      • Additional revenue: 11,500 patient days x ₹2,500 = ₹28,75,000

c. Improved Workflow Coordination

  • Reduction in Staff Overtime:
    • Savings from optimized workflows: ₹3,00,000

d. Operational Efficiency

  • Decrease in Equipment Losses and Repairs:
    • Estimated savings: ₹2,00,000

Total Expected Annual Savings

  • Total Savings: ₹4,38,000 + ₹28,75,000 + ₹3,00,000 + ₹2,00,000 = ₹38,13,000

Now let’s calculate Return of Investment (ROI)

First Year Costs

  • Total Initial Investment: ₹65,00,000
  • First Year Operating Costs: ₹8,00,000
  • Total First Year Costs: ₹65,00,000 + ₹8,00,000 = ₹73,00,000

b. First Year Savings

  • Total Expected Annual Savings: ₹38,13,000

c. Net Cost for the First Year

  • Net Cost: ₹73,00,000 – ₹38,13,000 = ₹34,87,000

5. Breakeven Analysis

a. Annual Savings Beyond Year 1

  • Annual Savings (after first year): ₹38,13,000
  • Annual Operating Costs: ₹8,00,000
  • Net Savings per Year: ₹38,13,000 – ₹8,00,000 = ₹30,13,000

b. Breakeven Point

  • Total Investment: ₹65,00,000
  • Annual Net Savings: ₹30,13,000
  • Years to Breakeven: ₹65,00,000 / ₹30,13,000 ≈ 2.16 years (approximately 3 years)

Summary

  • Total Investment in the First Year: ₹73,00,000
  • Breakeven Year: Year 3

Conclusion

Implementing an RTLS in a 350-bed hospital can significantly enhance operational efficiency and patient care. Despite an initial investment of ₹73,00,000, the hospital can expect to reach breakeven in approximately three years, achieving substantial annual savings thereafter. The expected improvements in bed utilization and workflow coordination are crucial for driving this ROI.

Did you know QR code can cut your shipment errors and returns drastically?

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QR Code for shipment trackingIf you are a factory owner or goods producers, this may be for you. Small businesses often struggle with shipment errors and returns. Manual processes and human error can lead to picking the wrong items, sending to incorrect addresses, or damaged goods arriving. These issues not only cost money in return shipping and processing fees but also damage customer satisfaction.

QR code can make tracking your shipment accurate and super-easy

A smartphone App is the lightest solution you can imagine. Using the App, you can generate QR code for each shipment and also use the same app to track them from anywhere. Each time someone scans, the location and time is recorded in the App. That way anyone in your office can track the item in almost near real-time.

  • Unique Identification: Each product or package would have a unique QR code attached. This code encodes information like the product ID, order number or any other fields you like to include.
  • Scanning for Accuracy: Warehouse staff can scan the QR code with a smartphone during picking and packing. This ensures the correct item is selected and placed in the appropriate package.
  • Real-Time Tracking: More scan adds more real-time updates. This transparency helps identify potential delays or delivery exceptions.

A 2021 survey by Zebra Technologies revealed that 83% of businesses using QR codes reported a decrease in picking errors.

A 2020 study by Deloitte found that real-time shipment tracking with QR codes reduced shipment returns by 15%.

Incidentally INDTRAC QR App does exactly what is needed. What’s more? We will help you in case you need any assistance in setting up at no cost to you.

Understanding asset tag technologies

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Indoor asset tracking is coming to mainstream now. Whether in hospital, or in warehouse, people are realizing that there are certain benefits that they cannot ignore any more in their business context.

But before you adopt it, would you not like to understand what it takes to implement? Of course there is this software called Real Time Location System (RTLS) but what about the tags? This is an attempt to make it simpler for you to decide.

Many Tag technologies

Every asset tracking system requires tags to be fixed on your assets. Now there are different tag technologies, like RFID, LoRA, BLE, UWB etc.

RFID can be both passive and active. Passive RFID tags do not have battery and therefore do not transmit by itself. RFID readers in vicinity sends search packets and the passive tags respond to them (they are passive after all!). Active Tags regularly send data which nearby Reader/Gateway captures. Sometimes people use Active RFID interchangeably with BLE or Bluetooth Low Energy.

So which tag should you choose?

The plain answer is it depends. For example, not all RTLS vendors support all tag types. In most cases vendors sell tags and other hardware as part of the full package solution. Other important factors depend on what you actually need.
Passive RFID tags cost the least among all of them but RFID readers some times miss reading passive RFID tags. In fact reading consistency is about 90%-95% for RFID readers with UHF antenna (UHF is the fastest among all the RFID system).

On the other hand UHF RFID readers are very expensive. Compared to that BLE devices cost magnitude cheaper. BLE is more accurate as well. UWB is the newest of the technologies and the technology is capable of precisely location an asset within a few centimeters. Hospitals traditionally went with RFID tags, many with vendor-proprietary active RFID solution. Proprietary solution makes you locked-in with vendor.

Incidentally INDTRAC RTLS works with almost all different hardware and tags and lets you change your tag system in future. For example, let’s say you decided to adopt BLE now. Later if you decide to upgrade to UWB, you can do that with INDTRAC.

Now coming back to relative benefits and costs. Typically UWB is the costliest solution at this point but offers most precise location articulation.

Here is a simple comparison chart for all the tags for quick reckoning.

Feature RFID BLE LoRa UWB
Technology Radio Frequency Identification Bluetooth Low Energy Long Range Ultra Wide Band
Range Short (~ 20 feet) Short (~ 40 feet) Very Long (~ 1 mile) Long (~ 100 meters)
Accuracy Low (~ 10 feet) Medium (~ 2 feet) Low (~ 100 feet) High (~ 1 inch)
Power Consumption Low Low Low Medium
Tag Cost $0.10 – $1.00 $0.50 – $5.00 $1.00 – $10.00 $5.00 – $50.00

Summary

In summary, if you follow traditional solutions, you would use RFID. If accuracy is paramount for you, you would have to choose UWB. But in most cases, BLE serves both ends. It also offers relatively long battery life for tags. Gateways also do not cost as much as UHF RFID. They are also easier to install or replace. INDTRAC supports both Indian brands as well as international brands like Zebra , Impinj or INGICS .

QR Code Asset Tracking App launched

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INDTRAQ QR Code android App for Asset tracking is now available. If you are a small business owner and want a simple solution to track your assets, we request you to try our QR Code App. No credit card is required for registration. Simply download the App and install in your android phone.

 

Easy to Use

After installing the App, follow the link to register your site. Once site is ready and live, which typically takes about twenty-four hours, you can login to the App.  By default you are the Admin of your site.

Once you login, add your assets, create unique QR code for each asset, download the QR code in your Google Drive. Print and fix it on the asset.  Now configure your site in the Admin console. Add location tags for each unique location your assets are expected to be. Add process work flow steps.

Now invite your users and let them start tracking the assets or updating the asset status.

 

 

Use for free

Our free plan is limited to 10 assets and 5 users. If you need to use it for more assets, please call us to explore our premium plans. And please do not forget to share your feedback with us. If you like the App, please rate us 5 star in Capterra and G2

RTLS helps hospitals to reduce human error

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Healthcare Industry is constantly upgrading technologies to improve service predictability and reduce cost. One of the trends that we see this year is more pronounced use of automated data capture system instead of manual form filling. There are many benefits for sure. Here are some:

  • it enables data capture consistency
  • it helps in reduction of human error in data capture
  • it frees up the nurses’ time for more important patient-care

Important thing is that these can be integrated with RTLS. In other words RTLS not only helps hospitals to keep tab on all their expensive assets, it also can help a hospital to streamline workflow management  using IOT-enabled identity cards, asset tags and patient tags.

Healthcare IT News posted an article this month. Quoting the article,

It often can be time-consuming and impacted by human error when healthcare staff are left to juggle the needs of their patients and the administrative requirements of manual documentation. RTLS leverages IoT-enabled badges to automate data collection, providing accurate insights while enhancing the patient care experience.

In 2023, I expect more healthcare organizations will use these badges to collect data enterprise wide to gain comprehensive real-time insights on equipment utilization, clinical workflows, patient/staff interactions and safety compliance to reduce operational bottlenecks, increase efficiency and improve the patient experience.

INDTRAC can help you choose the right technology, instruments and implement customized workflow management using RTLS.