Jump Technologies’ Business Leaders Predict Challenges, Opportunities for Healthcare Organizations in 2016
Eagan, MN – December 21, 2015 – The business leaders at Jump Technologies, Inc., an innovative software company with solutions that improve supply management in hospitals, today announced predictions for healthcare systems in 2016. In a challenging healthcare environment, Jump Technologies helps improve business processes in hospitals with its portfolio of cloud-based mobile solutions that reduce labor, reduce costs, and enable more automated and accurate supply management.
The Current Situation:
The Center of Medicare and Medicaid Services reported 27 percent of hospitals were at negative margins in 2013, with an expectation the number will grow to 30 percent by 2019. By 2040, it is predicted over half the hospitals in the United States will be losing money. As the Affordable Care Act increases pressure on hospitals, and reimbursements decline even further, the need grows for more significant cost reductions.
Yet despite the need for change, making progress is difficult as hospitals remain burdened by legacy technology and poor business processes. Enterprise Resource Planning (ERP) system vendors have not made the investments in their systems needed to meet today’s emerging requirements; upgrades are expensive and labor-intensive. The greatest weaknesses of these systems include the lack of actionable, accurate data; the lack of continual transactional data; and the lack of adoption due to difficulty of use.
In light of today’s healthcare environment, the leaders of Jump Technologies believe that while there are significant challenges faced by hospitals, taking immediate action is key to future success. To delay means losing opportunities to improve business processes and capture savings sooner.
John Freund, CEO: “For healthcare organizations, the demand to upgrade supply chain software will be similar to the demand to upgrade ERP systems created by Y2K, as we see the teeth of the Affordable Care Act sink in. It’s predicted that changes in Medicare reimbursement will drive hospitals to cut as much as 20 percent of their budgets over the next two years1. With labor and supply chain as the first and second largest expense for hospitals, respectively, it will be exceptionally difficult to achieve these budget cuts without impacting patient-facing services.
“Historically, a major challenge for healthcare supply chain leaders was not being ‘at the table’ for technology decisions. ERP systems have been selected for the financial and human resource functionality, and supply chain has been left to use the supply chain modules that came with these systems, whether or not they met the needs of the organization. Yet with impending budget cuts, supply chain will be asked to bear much of the burden of cost-reductions. It begs the question – how will supply chain leaders make significant cost reductions with current tools and processes?
“In 2016, supply chain leaders will take action to overcome the limitations of their ERP systems and seek technology solutions that drive rapid return on investment. There are immediate savings available through improved supply management - by reducing on-hand inventory, reducing labor costs of managing inventory, and reducing high costs of off-contract spending. Related business processes can be optimized; implementing true inventory management can reduce the problems hospitals experience with current replenishment methods, even eliminate overstocking, stock-outs, waste, and associated costs.
“Hospital supply chain leaders will turn to cloud-based mobile technology, which provides numerous benefits including affordability, scalability, security and continually updated functionality. Hardware investments, multi-month or multi-year implementations and enormous consulting fees are eliminated with cloud-based systems. Today’s smarter solutions minimize impact on hospital IT teams, and deliver new functionality through standardized user interfaces that help ensure adoption of new business processes for consistent use – a building block of accurate data needed for better planning.
“This is the year to make change that delivers substantial savings – by challenging preconceived ideas about systems, processes and methodologies.”
Jim Bellon, director of Integration Services: “Providers will recognize the issues stemming from the lack of integration and data sharing among current systems. Today, these disparate systems cause hospitals to lose opportunities for greater automation and more accurate planning processes. In 2016, we’ll see system integrations became more standardized, with faster methods to connect systems and share data among them. This will allow health systems to take advantage of new best-of-breed solutions that connect to their ERPs, patient health records – literally any system being used within the hospital.”
Dan Crombie, director of Product Management: “In 2016, healthcare managers will demand transparency and real-time data from their supply chain technology. In an effort to cut costs, boost revenue and move toward the visibility other industries rely upon, healthcare supply chain leaders will demand end-to-end visibility of their entire supply chain. Today, the lack of transparency allows costs to repeat and grow unchecked. Real-time, transparent data will help managers find savings large and small.
“Increasing transparency in the supply chain helps provide proactive alerting and self-monitoring with intelligence. Transparency and real-time data are the building blocks of supply chains that can be more automated, leveraging the aggregated, big data of hundreds of institutions spread across the country.”
Cheryl Flury, vice president of Marketing: “So much progress has been made by hospital supply chain leaders but a big step toward a more visible, end-to-end supply chain will happen in 2016. What will drive this are the new types of patient care facilities, such as stand-alone emergency departments, outpatient surgery centers, and sub-acute clinics, which must be connected to the larger health system for efficient supply management. With a highly visible, fully-connected system, new approaches to supply management can be implemented, supply velocity understood at an organization level, supply levels optimized, on-contract spending ensured, and more accurate planning consistently applied.”
Sophie Rutherford, vice president of Business Development: “In 2016, we’ll see supply chain technology mature across the healthcare value chain. We’ve recently seen monumental advances in technology, skill sets of the human capital, and have created a true community of partnerships that bring many different dynamics. 2016 will be a year to focus on improving bottom line expenses through investments in technology to reduce overall costs. We’ll see the “electronification” of traditional manual workflow and increased information symmetry. Good technology will be the enabler of this, as well as the way healthcare organizations reduce costs and align with Cost, Quality and Outcomes initiatives.
“We’ll see continued improvement in supply management operations through the creation of focused supply chain automation models, leveraging data to identify cues critical for process improvement, enabling organizations to develop sustainable supply chain strategies that incorporate technology. Though the healthcare supply chain has evolved rapidly over the last 20 years from the traditional ‘order fulfillment operation’ into a ‘strategic analytics operation,’ there’s still significant opportunity for organizations to reduce costs by gaining more insight into their supply chain.”
Hospitals across the United States are using cloud-based solutions from Jump Technologies to improve inventory management and create dock-to-destination visibility to supplies throughout their facilities.
1Mercatus Center, George Mason University, 10/27/2015
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About Jump Technologies, Inc.
JumpTech is the first provider of cloud-based inventory management solutions for hospitals and healthcare organizations that are easy to implement, adopt and manage, using mobile devices such as tablets and smartphones. Eliminating extensive investments in hardware, implementation time and training, solutions from JumpTech are guaranteed to deliver immediate return on investment. Easy-to-use interfaces and accurate, timely reports help drive compliance, reduce training, save hard dollars and reduce labor. For more information, visitwww.jumptech.comor call (888) 373-7226. Follow the company on LinkedIn, Twitter @JumpTechNews and on Google+ at google.com/+JumptechInc.