Understanding the Financial Impacts of RTLS for Healthcare Organizations

Imagine a hospital where staff can locate vital equipment instantly, ensuring faster response times and improved patient care. What if the same technology could streamline workflows and optimize staff scheduling? That’s the power of real-time locating systems (RTLS). Beyond the operational improvements offered by this technology lies an essential question: How does RTLS translate into real financial benefits for healthcare institutions?

Cost savings through improved resource management

Collectively, healthcare organizations lose millions of dollars annually due to misplaced equipment. Research from 2023 indicates that between 10% to 20% of a hospital’s mobile equipment assets are lost or stolen during their useful life, with costs averaging $3,000 per item. Unfortunately, patients often pay the price for this lack of transparency and accountability.

RTLS is a first line of defense in this costly game of hide and seek. It can provide real-time location data for critical assets, allowing healthcare professionals to instantly locate everything from infusion pumps to defibrillators within the facility. This results in:

  • Reduced equipment costs and fewer duplicate purchases due to perceived loss

  • Improved turnover time for more efficient operating room utilization

  • Streamlined staff scheduling and deployment based on real-time needs

Equipment tracking enables instant visibility, eliminating wasted time searching while optimizing resource allocation. RTLS instantly delivers a significant return on investment for hospitals by ensuring equipment is consistently available and accounted for.

Enhanced patient care and safety

How do you calculate the impact on an expectant mother when an ultrasound cart goes missing? What’s the true cost for a patient in renal failure when a dialysis machine sits idle because it’s assumed to be in use? These examples and countless others show the value of RTLS beyond just asset tracking. It can elevate patient care and safety within healthcare facilities:

  • Faster response times: RTLS allows real-time tracking and coordination of equipment location. Picture routing mobile equipment to different areas of a hospital wing corresponding to the severity and timeliness of need across a full patient caseload.

  • Improved patient safety: RTLS can be a lifesaver for at-risk patients. It can be used to monitor patients who are at risk of falling and alert staff to provide timely assistance and help prevent injury.

  • Enhanced emergency response: During life-threatening situations, every second counts. RTLS can locate crash carts and defibrillators in real time, guiding medical personnel to the equipment’s exact location to save precious time during emergencies.

When healthcare organizations operate in real time — with equipment and personnel moving in tandem — the patient experience improves. Reduced risk, increased satisfaction, and fewer complications all translate to the bottom line — particularly in the era of value-based care. RTLS offers an efficiency advantage that benefits everyone.

Long-term value proposition

The true power (and value) of RTLS lies in its ability to evolve alongside healthcare. While the initial implementation might focus on asset tracking, a well-designed RTLS system offers a scalable foundation for future applications. For instance, envision integrating environmental monitoring sensors within an RTLS network, enabling real-time tracking of temperature and humidity in crucial areas like pharmacies or blood banks.

RTLS data can also integrate with existing hospital IT systems to automate tasks and streamline workflows. For example, automated alerts could be triggered when equipment nears the end of its calibration cycle, prompting preventive maintenance scheduling. This integrated ecosystem fosters a more efficient and data-driven healthcare environment, maximizing the return on investment for an RTLS solution.

Bottom-line benefits

Healthcare organizations can access a world of possibilities beyond simple asset tracking by choosing a scalable, future-focused RTLS platform. While implementing RTLS requires an initial investment, the long-term financial gains can be substantial. The improved efficiency, reduced costs, and enhanced patient care can significantly impact a hospital’s bottom line. Healthcare leaders looking to make a sound investment would be wise to consider the economic advantages of RTLS.

Learn more about the financial benefits of RTLS at trlsystems.com/solutions-healthcare.

Sy Granillo