5 Best Practices for Managing Hospital Logistics

Hospital logistics refers to the overarching process of planning, implementing, and managing the flow of goods, services, and information at a facility. While this includes direct patient care processes, it also encompasses the behind-the-scenes inventory control and resource distribution that’s needed to prevent disruptions to critical services.

Whether your facility serves a dozen or a hundred patients each day, optimizing your logistical workflow is essential for ensuring safe and efficient care delivery. In this article, we’ll provide an overview of how logistics in healthcare facilities are assessed, planned, and managed, while outlining five best practices to help you streamline your operations.

What Is Hospital Logistics?

Given how complex hospital operations are, it’s common to ask, What is logistics in healthcare? Simply put, it’s the discipline of ensuring that the right resources are reaching the right people at the right time. There are a lot of moving parts within a hospital’s care structure, but we can broadly categorize the logistics of a hospital into the following components:

Example of Hospital Logistics

To get a better sense of what goes into running a hospital, let’s look at a simplified example of how some of these components work together to streamline workflow. In this example, the surgical ward at a facility is impacted by an usually high volume of emergency cases. The sudden increase in patient flow leads to a low stock of gowns.

Staff are alerted about this low stock on their electronic inventory tracking system. They, in turn, submit a restock request to the inventory management team, and more gowns are brought up to the surgical ward from the facility’s main storage unit. Then, the supply chain management team contacts the hospital’s supply vendor to ensure that the stock of gowns within the storage unit are also replenished.

What Type of Staff Oversee Hospital Logistics?

The chief operating officer (COO) typically oversees all of the operations at a hospital. Some C-suites may also have a chief procurement officer (CPO) who is specifically in charge of product purchasing and supply chain management.

At the departmental level, the logistical aspects of care are overseen by several managers, coordinators, and specialists within each unit. However, the exact types of staff involved in daily operations will largely depend on the size and needs of a facility.

Common Challenges in Healthcare Logistics

Before we discuss best practices, it can be helpful to understand what potential barriers you should prepare for when optimizing your logistical workflow. Here are some common challenges that can impact the operations at a hospital.

Inefficient Communication and Coordination

Poor communication and coordination between departments can cause delays in daily operations. This can occur when facilities use outdated modes of communication that make it difficult for staff to reach each other in a timely manner.

For example, let’s say a facility is using a single-line telephone system in which unit managers must manually call the float pool department to request back-up staff. On days where multiple staff across different departments are calling out sick, the telephone line may be backed up, which can lead to delays in patient care.

Supply Chain Disruptions

Sometimes, unforeseen circumstances can cause disruptions to logistics and supply chain management in healthcare. A real-world example of this is the COVID-19 pandemic, which created an unprecedented demand for a wide range of medical supplies and personal protective equipment (PPE).

However, these disruptions can also happen on a smaller scale. For instance, poor relationships with supply vendors can cause delays in deliveries. Vendors may sometimes even go bankrupt — which can impact a facility’s ability to purchase items needed for patient care.

Mismanaged Finances and Budget Constraints

Healthcare requires a delicate balance between controlling costs and ensuring that patients get the care they need. If your budget isn’t strategically managed, this may lead to excess supplies accumulating in one area and critical shortages occurring in another. This can ultimately lead to wasted resources, decreased efficiency, and poor quality of care.

5 Best Practices for Hospital Logistics Management

Now that we’ve provided an overview of healthcare logistics and what can hinder it, you may be wondering how to optimize the operations at your facility. Here are five best practices that can help you start improving the efficiency and quality of your processes.

1. Centralize Your Operations With Technology

One of the most effective ways to optimize logistics is to centralize your operations with technology. Given the intricacy of a hospital’s structure, this may require you to consider different technological systems for different departments. For example:

• Upgrading paper charts to electronic health record (EHR) systems can improve the flow and exchange of patient information.
• A cloud-based inventory system enables staff to electronically manage supply stocks.
• Float pool management software can improve the coordination of staff assignments and make it easier for managers to place staffing requests.

2. Automate Redundant Processes

In addition to centralizing your operations, technology can also be used to automate redundant tasks and improve the overall efficiency in your services. Here are a few ways that automation can be used to enhance hospital logistics:

• Barcode scanning systems can enable staff to easily scan and track supplies.
• Automatic medication dispensers can decrease errors and enhance security.
• Automation tools can be used to improve efficiency in billing and claims processing.

3. Bridge Gaps Between Direct Care Staff and Supply Management

Even with the most advanced systems and technologies, facilities will still run into logistical barriers if direct care staff are not appropriately involved in the supply management process. For example, if staff don’t know what steps to take when supplies are running out, this can lead to unnecessary back-and-forth and delays in communication. At baseline, it’s important to ensure that your direct care staff are trained to:

• Use relevant automated tools and electronic systems that your facility decides to adopt.
• Contact the appropriate personnel when medical supplies on the unit are running low.
• Keep supplies organized at the unit level so that other staff can easily access them.

4. Take Steps to Monitor and Improve Your Performance

Improving your facility’s performance goes beyond tracking direct patient outcomes. You should also be monitoring key performance indicators (KPIs) related to the logistics of your facility. This will allow you to identify what is (and what isn’t) working, which can better inform any changes you decide to make to your workflow. Examples of logistical KPIs include:

• Patient wait times.
• Staff-to-patient ratios.
• Average claims processing times.

5. Be Prepared for Emergencies

Finally, you should always have a back-up plan for when things go wrong. If there are any unexpected interruptions to your day-to-day logistics, staff should know what steps to take to restore care services safely and efficiently. Make sure that your facility’s emergency operations plan (EOP) is regularly updated to address logistical workarounds such as:

• Back-up supplies, equipment, and power sources.
• Facility-wide communications during an emergency.
• Alternative staff roles and responsibilities.

Learn More Ways to Optimize Your Facility’s Operations

Feeling overwhelmed by everything that goes into managing hospital logistics? IntelyCare is here to help break down all of its components. Get dozens of other expert-written tips and insights on healthcare management delivered straight to your inbox.