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JHOM
25,5 Radio frequency identification:
the big role player in health care
management
490
Yahia Zare Mehrjerdi
Department of Industrial Engineering, Yazd University, Yazd, Iran
Abstract
Purpose – This paper seeks to review the fundamental concepts of radio frequency identification
(RFID) and to discuss the fact that the road to success for healthcare systems is the thorough
management of patients, employees, equipment, medications, and records throughout the industry.
Thereafter, it aims to prepare a deep review of the technology, study seven new cases on the topic of
healthcare management and deliver a broad applications area thereof.
Design/methodology/approach – The paper identifies key elements of RFID through the review of
healthcare management literature and case studies. For this purpose, seven cases from the healthcare
industry are reviewed to demonstrate the extent of the applications of RFID in this area.
Findings – To make healthcare management systems functional and successfully operational, RFID
solutions can be used to reduce operating costs through management of patients, employees,
equipment, medications, and records to improve tracking and tracing, and preventing the lost of
resources under any circumstances.
Originality/value – This paper delivers a review of RFID on the healthcare industry. For this
reason, the basic and key point on RFID technology is discussed and seven cases from the literature
are reviewed.
Keywords Radio frequency identification, Business values, Health care, Case studies
Paper type Research paper
1. Introduction
Food and drug industries have enormous potential for utilizing radio frequency
identification (RFID) technology. This is largely because each chip is unique to the
specific box of medication or food it is attached to. Therefore, tracking where each
product is located becomes relatively simple. When a chip is attached to a box and
manufacturer recalls a batch of products, then the RFID tags for the containers affected
can be flagged electronically. Eventually, food and/or drug retailers will not be able to
sell recalled products because cash register and store’s computer system will not allow
it. Once this technology is coupled with the power of the internet and there is a
real-time product recalls, where retailers’ own inventory control systems, tied into
RFID databases, alert the store manager to pull specific type of drug off the shelves
while leaving the rest (Kumar and Budin, 2006).
Many business enterprises and the health industry are applying the advantages of
Journal of Health Organization and RFID to experimental projects to improve operational efficiency and to gain a
Management competitive advantage (Bilge and Ozkarahan, 2004). The advantage of RFID tags is
Vol. 25 No. 5, 2011
pp. 490-505 that they use a memory storage device to store a certain amount of data such as the
q Emerald Group Publishing Limited
1477-7266
product identification number, price, cost, manufacture date, location, and inventory on
DOI 10.1108/14777261111161851 hand. Due to this fact that this information can quickly be read by a wireless scanner,
so RFID can process large volumes of multiple data sets at the same time and improve Radio frequency
the efficiency of operations by using identification tags (Chao et al., 2007). identification
A critical tool for fighting with drug counterfeiting and making any improvement
for the public, in general, can be achieved today through the RFID technology. The
question that this industry is facing with is where they should start and how they
should employ RFID technology for complex supply chains. It is estimated that
between 5-8 percent of the trade in drug industry is counterfeit. Given that the 491
pharmaceutical market is over $500 billion across the world, counterfeiting becomes a
very large amount and hence a huge problem. In February 2004 report, the US Food
and Drug Administration (FDA) stated that RFID represents one of the most important
tools to help improve the safety of the drug supply chain. Then, FDA has asked the
industry players to pilot the track-and-trace solutions based on the RFID and related
technologies by the end of 2007. Key industry players are already invested
considerable amount of money on the related technologies. In fact, because many of
large pharmaceuticals are working on multiple RFID projects, Sun Microsystems is
helping them in developing a global RFID approach and architecture instead of
implementing separate solutions for each RFID project (RFID, 2005): “FDA estimates
that counterfeit and substandard product represents $32 billion of the global
pharmaceutical business”, says Kara Romanow, research director at AMR Research,
Boston. So, RFID for Pharmacy represents a unique opportunity to address the
counterfeit problem. Drug makers Pfizer and GlaxoSmithKline have announced that
they also are preparing to launch RFID pilots (O’Connor, 2007).
Today, the safety of working locations, products, transportations and customers are
the main things to managers. In Pharmaceutical industry that is even more important.
This is because the safety of the people and nations also must be taken into
consideration. Refreshable goods often require strict control of storage/transportation
environments such as high and low temperature. The expiration date must be taken
into consideration as well. Tracking and tracing processes offer the documentation
needed to ensure these safety requirements. Tracking and tracing are ineffective most
often. This is because they are reactive instead of proactive. If we use EPC technology,
products can be tracked and traced very easily. Any person who has access to
information along the supply chain can find out the historical background on a
particular drug, as well as its current location. EPC technology verifies information at
every point along the supply chain helping to ensure product integrity (RFID, 2005).
This research analyzes the coupling of RFID with the health care management
concepts to enhance the productivity of the system under study. Such a research is
needed to determine the RFID value as far as its business value generation capability is
questionable. Research is conducted using a descriptive type information gathering
procedure and situation analysis having selected seven cases from the literature of
RFID and health care management.
The rest of this paper is organized as follows: section 2 describes RFID and its
components as such as tags, costs and its frequencies. Section 3 is about RFID
applications in healthcare systems. Section 4 reviews the RFID-based healthcare
systems. In section 4, seven cases on healthcare topics are reviewed. Managerial
implementation is given in section 5. The conclusion is given in section 6.
JHOM 2. What is RFID?
25,5 RFID is a well-known identification technology helping to automate and computerize
data capturing. It was developed in 1970s and is capable of using radio waves to
automatically identify people or objects. It had not been a popular technology until
recent years because it had been too expensive and too limited to use in commercial
applications. An RFID system uses distinct components to capture object information.
492 This technology has a scanning antenna that scans for radio waves. There is a
transceiver to interpret data, a reader to transmit and receive radio frequencies, and a
transponder (RFID tag) that is attached to the object that is being identified. RFID is a
term used for technologies utilizing radio waves for identifying individual items
automatically. The most common way is storing a serial number identifying a product
and related information on a microchip attached to an antenna. RFID is used very
similar to bar codes. It is designed to track items in the supply chain without requiring
a line of sight. To read a bar code its lines had to stay in sight of the scanner to identify
product correctly. RFID tags store up to two kilobytes of data (depending on the
vendor), whereas bar code labels can only store limited information about an object.
RFID tags are also more durable than bar coding tags. RFID tags can endure x-rays
and heated sterilization of medical items. Unlike bar code labels, RFID tags do not
damage easily and are not affected when dirt covers that. RFID tags are read at a
100-1,000 tags per second rate, which is extremely faster than manual scanning of bar
codes.
RFID has been identified as one of the ten greatest contributory technologies of the
twenty-first century. This technology has found a rapidly growing market, with global
sales expected to top $7 billion by year 2008 (Chao et al., 2007). Companies lined up to
use RFID and employing experts to improve the efficiency of their operations in order
to gain competitive advantages over time. Ford uses RFID tags at several of its
facilities to track work-in-process and improve production control. For example, at its
Essex engine plant in Windsor, Ontario, tags carry all the instructions needed to
assemble an engine and collect all the test data accumulated during manufacturing to
be used in product tracking and quality control.
The cost of RFID tags has come down by about 40 percent per year and this trend is
expected to continue for the next few years. Also, they indicated that the ubiquitous
item-level RFID tagging will perhaps arrive towards the end of the decade if the
technology road map to the “one-cent RFID tag” is traversed successfully.
Durations of
Rows Industries Amounts impacts
provides a huge benefit to the hospital. The average cost of an error can range from
$4,000 to $12,000 per instance. If only 1 percent of our interventions stop an error, that
can quickly add up to half a million dollars”.
5. Management implementation
RFID is a flexible technology and has many attractive attributes that can be integrated
into different systems. It can uniquely identify any object on which a tag is attached.
The tag can be read in any orientation. RFID-based systems can be integrated into
existing healthcare systems to improve the efficiency of the main processes carried out
in any hospital/emergency room and increase the quality of services to be provided.
The ability of RFID to uniquely identify every item is very suitable for
hospitals/emergency rooms. An RFID-based healthcare system would bring with
itself many properties:
.
speed up the finding of equipment such as patient wheelchairs;
.
improve the stock control of the medications and surgical needs;
.
ability to track down misplaced surgical items and hospital materials;
.
increase the security at sensitive entrances;
.
bring convenience to hospital system;
.
improves hospital work flow;
.
increase staff productivity; and
.
enhance patient service.
The global challenges that RFID is facing with are human expert challenges, privacy
issues, technology challenges, standard challenges, pattern challenges, cost challenges,
infrastructure challenges, ROI challenges, barcode to RFID migration challenges,
management commitment challenges, and technical support challenges. There are not
many skilled RFID professionals that can help to set up appropriate systems to
construct suitable applications.
JHOM Main obstacles of RFID can be classified as:
25,5 .
standardization for RFID is not yet completed;
.
early adopters of RFID are still managing consciously;
.
many potential adopters are waiting on the sidelines for proofs of successful and
safe adoptions;
500 .
compatibility with legacy systems is not addressed seriously;
.
security issues need to be resolved;
.
complexity and high cost for coverage in large plants prevent fast adoption;
.
power supply is always a great concern for wireless systems;
.
the reliability of wireless system remains unproven and it is considered too risky
for process control;
.
lack of experienced staff for troubleshooting; and
.
future trends of the technology.
6. Conclusion
This paper has discussed about the active and passive tags, the costs of tags, its
producers, and frequencies. Active RFID tagging has evolved to be a necessary
technology for business productivity improvement efforts and security in the
enterprise. Active RFID will complement and complete the capabilities of passive
tags. In security, active tags can provide automation for immediate visibility into the
activities in and around an enterprise. In spite of the advantages of the RFID
technology, there exist some technical and managerial problems for RFID
applications including the reliability, identification range, implementation cost and
EPC standards. As for the health care supply chain applications, the RFID tagging
mechanisms can be classified into item tagging, case tagging and pallet tagging
where the RFID tags are attached onto items, cases and pallets, respectively. Since
the unit price of an RFID tag is still too high for organizations to afford the item
tagging mechanism. For this reason, at the current status, the RFID tags are mainly
applied to reusable pallets, cartons or cases and the identity of each item on the pallet
(or case) cannot be accurately revealed.
RFID technology can provide a variety of benefits for healthcare system and its
management. There are a number of ongoing trials and studies at hospitals and
healthcare centers around the world utilizing and integrating RFID into their hospital
information systems. Because of RFID studies and trials, it has been found that RFID
elicits improvements in inventory management, patient safety, and security. Some
hospitals have found that through RFID systems, medical errors have been reduced,
which results in a reduction in costs to run medical programs. Positive patient
identification can be achieved through the use of an RFID system. This is an essential
policy for a hospital since the leading cause of death due to medical errors is caused by
patient misidentification, and specimen or medication misidentification. These errors
result in billions of dollars in national costs per year. Reducing medical errors not only
increases patient safety, but also provides a huge benefit to a hospital. Each type of
RFID system can be tailored to fit the needs of all healthcare programs. Every hospital
is encouraged to integrate their existing system with RFID in order to reap the benefits
of the evolution of healthcare technology’s marvel, RFID.
RFID is a solution that enables a nurse, a technician, or an authorized employee to Radio frequency
easily determine the location of equipment, run queries or reports to provide inventory identification
information, parametric searches, graphical representation to identify the location of
the equipment or the asset, and also manage the service and maintenance of the
equipment using any computer tied into the network. The results of these applications
are beginning to provide proof that using RFID technology in the healthcare industry
provides significant labor savings, improved efficiency, and a good return on 501
investment.
Financial savings from RFID technology with regard to equipment tracking in
healthcare industry can be stated as:
.
not being able to locate the equipment, hospitals buy extra or replacement
devices for availability, which causes high annual spending and many devices
are left unutilized or under utilized. Using RFID to manage these devices
increases the utilization rate, cuts annual spending, allows divestment of
under-utilized assets, and improves confidence that equipment is always be
available when needed;
.
with RFID equipment tracking in place, expensive medical devices can be
quickly brought into control by alerts based on location and notification when a
device leaves a predefined area;
.
equipment management with RFID can eliminate inefficient, long manual
searches for assets that need maintenance or need to be returned to central
processing units, and can maintain up-to date equipment status; and
.
with a decrease in patient wait time, there is improved patient care, more
employee satisfaction for nurses, technicians, doctors, etc. lower per-patient cost
of service delivery, effective work flow, and operational efficiency with support
staff always at hand.
Corresponding author
Yahia Zare Mehrjerdi can be contacted at: yazm2000@yahoo.com