Assignment:
Business Case to Streamline (Automated External Defibrillator) AED Implementation
Executive Summary:
In congruence with Christus Quality and Operational Excellence goals to improve quality by operationalizing potential risks that may cause harm to patients. Physician Enterprises propose to streamline the use of AEDs across the organization by purchasing an AED Program Management system from CINTAS. The existing defibrillators will stay in each clinical site until they have reached the end of their useful life (6 years old). CINTAS will only replace AEDs if the AED unit requires adopting new technology with additional monitoring capabilities that will improve outcomes for cardiac arrest and heart attack patients. Clinical sites without an AED or an AED needing replacement, will lease an AED from CINTAS.
Physician Enterprises ownfifty one AEDs across the organization which are locally managed by each practice site. The organization has eight practice sites without and AED.
A number of options for replacement were considered for value, money and affordability. The options were developed relating to issues such as the configuration of equipment, the purchase cycle and the method of funding.
Physician Enterprises should purchase the AED Program Management, the purchase to take place from April, 2018 and the roll out and implementation of the new program to take place between March, 2018 and April, 2018.
Background:
Physician Enterprises does not have annual inspections to ensure that AEDs are in working order. Safety champions conduct monthly or weekly checks however, a checklist does not supplement regularly scheduled, detailed inspections recommended by the manufacturer.
As we continue to support more clients in more locations, the administration of our workforce has become more difficult. Until now, AED maintenance is a manual process. To effectively manage our administration, reduce cost, and streamline AED management, Physician Enterprises must move to a web-based application. By doing so, managers as well as safety champions will assume a greater role in managing their safety challenges and the company can manage its' safety from one central and common platform.
Purpose:
Moving to a centralized web-based administrative platform will enable Physician Enterprises to manage AEDs in a seamless and consolidated manner. This technology migration will reduce the time required to manage these tasks.
Recommendation/Analysis:
An area of concern with AED equipment regardless if purchasing, leasing or keeping is the initial cost of the implementation.Using NPV (what is NPV? Need to spell out for those who don't know), the analysis determined if keeping, purchasing or leasing was the best option for:
1. clinical sites with AEDs
2. clinical site without AEDs or
3. clinical sites with models not maintained by CINTAS
The assumptionwas made that AEDs already owned have the same cost of capital. Purchasing thru McKesson, an AED machine including pads and batteries will cost $1,814.43. Purchasing from CINTAS the total cost is $1,749.00, including one year of the LIFE Ready management program, which costs $450.00. Leasing is the best option when compared to buying since it has lower costs when future costs are discounted.