Quantitative Case Study: Use of Pharmacy Patient Information Systems to Improve Operational Efficiency

In recent years, many US hospitals embarked on "lean" projects to reduce waste. One advantage of the lean operational improvement methodology is that it relies on process observation by the workers, and requires relatively little data. However, as more operational data becomes available, hospitals may be able to prospectively evaluate and implement redesigns resulting in even more significant waste reductions. We provide one example of such a re-design in this case of a data-driven waste reduction project in an in-hospital pharmacy. A relatively simple mathematical model of the medication prepared and delivered by the pharmacy is used to estimate the savings from several potential approaches (rescheduling the start of production, scheduling multiple batches, or reordering production) as well the impact of some information system enhancements. We find that relatively small process changes, if implemented nationally, have the potential to save tens of millions of dollars annually.