By Joshua J. Barrett, Center for the Business of Health, Kenan-Flagler Business School, The University of North Carolina at Chapel Hill, USA, Joshua_Barrett@kenan-flagler.unc.edu | Vinayak Deshpande, Kenan-Flagler Business School, The University of North Carolina at Chapel Hill, USA, Vinayak_Deshpande@kenan-flagler.unc.edu | Martyn Knowles, UNC Rex Hospital, USA, martyn.knowles@unchealth.unc.edu | Sandeep Rath, Kenan-Flagler Business School, The University of North Carolina at Chapel Hill, USA, Sandeep_Rath@kenan-flagler.unc.edu | David Rowe, Operative Flow Technologies, USA, dave@opflowtech.com | Benjamin C. Wood, Operative Flow Technologies, USA, ben@opflowtech.com
Surgical instrument costs, including sterilization, tray assembly, and repurchase, contribute heavily to hospital operating expenses. Over time, trays often accumulate infrequently used instruments, increasing costs. We present a data-driven optimization model for surgical tray design, developed using point-of-use surgical instrument data collected in partnership with OpFlow, a healthcare technology firm. This model streamlines trays and suggests specialized tray composition, improving instrument utilization and delivering significant cost savings. We validated the model through out-of-sample testing and expert review, demonstrating its superiority over both current practices and expert-led reconfiguration. Implementation at UNC Rex Hospital achieved a projected $1.39 million in annual savings for a representative set of trays. Our analysis proves the value of point-of-use data and scalable algorithms for surgical tray optimization. The successful collaboration between academia and industry in this work highlights a path toward further data-driven innovations in healthcare operations.
This work summarizes the deployment of a data-driven approach to surgical tray optimization; further background and technical details can be found in the following journal articles: Deshpande et al. (2023), Knowles et al. (2021), and Wood et al. (2021).
Lessons from the Pandemic for Healthcare Operations delves into the lessons learned from the COVID-19 pandemic that can be applied to the post-pandemic world to enhance efficiency, equity, and fairness in healthcare operations. It emphasizes the importance of preparedness in combating future pandemics or public health disasters, regardless of when or where they may occur. This work offers a unique perspective through which to view the evolving outlines of healthcare delivery, policy, and research. This is illustrated using several real-world experiences, empirical studies, and forward-looking insights. The contributions fall under three broad themes: the management of policies and funding in healthcare, the role of data and data-driven research, and accessible healthcare services during and after the pandemic.
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Foundations and Trends® in Technology, Information and Operations Management, Volume 19, Issue 2-3 Special Issue: Lessons from the Pandemic for Healthcare Operations
See the other articles that are also part of this special issue.