Like the vendor master, a hospital’s item master is an immensely powerful set of data that keeps the hospital running smoothly on a day-to-day basis. In our experience, too many health systems view the item master as just another task, rather than the strategic asset we know it is. Let’s take a closer look.
An item master full of errors and inconsistencies is more of a liability than an asset. Before you can start seeing the benefits of a well-maintained item master, your organization should commit to correcting existing errors and implementing procedures that prevent them from occurring again. Start with our tips for a successful item master cleanup.
Contracts play a key role in how hospitals manage pricing throughout the year. In order to negotiate the best-possible contract with vendors, a hospital needs accurate item usage data and item prices. If faulty data indicates an item is used more frequently with an incorrect price than it really is, a hospital could enter into a more expensive contract for that item.
When mistakes are made involving the item master, there is a cost associated with correcting them. This is typically the cost of someone’s time to identify and fix the error, which is time they could have spent on more immediate priorities within the organization. When the item master is consistently maintained, everything runs more smoothly and frees staff to focus on other items.
A well-maintained item master ensures you order the correct product with the correct unit of measure for the correct price–every time. It sounds simple, but you would be surprised what a difference this continual accuracy makes over time. The item master has the potential to improve long-term cash flow and give healthcare organizations the peace of mind that their purchases are handled correctly
Cleaning up your item master is a time-consuming, data-intensive process. For the average in-house team, it is simply too much work to take on without significantly disrupting daily operations. Let The Audit Group lead the process for you. We’ll analyze your item master and help you structure it for improved efficiency and cash flow.