Does Asset Tracking Live Up to the Hype?


Author: Matthew Holt
Asset tracking has become a hot technology in the last couple of years. Tracking technology vendors claim that RFID-based systems provide close to instantaneous ROI, by reducing equipment rental costs. Furthermore, even though only a small minority of American hospitals have any kind of asset tracking thus far, the push is already on to extend tracking to medical staff and patients.

One of the main questions is whether WiFi-based tracking is accurate enough to be useful. One vendor, Pango has subtly changed its business model. Its Locator application can now accept signals from “tags” that use various wireless systems in addition to WiFi, such as infrared, 802.15.4, and ultra wideband. This is a tacit recognition that WiFi-based tracking may not be accurate enough for clinical situations.

Ken Lynch, Pango’s director of product marketing suggests that “WiFi tracking may not fit, say in the emergency department, where they might want to track at a much finer level of location granularity” as compared to knowing whether wheelchairs or pumps are on a particular floor. The issue here is that typically non-WiFi-based systems require the installation of separate networks, which cost substantially more.

Even if WiFi is good enough to track equipment and other assets, there are now a few voices out to deflate the hype. Vendors such as Cisco, AreoScout, and Ekahau claim their early clients are seeing good ROI from reductions in equipment loss and reduced rental fees. But in the October and November editions of ECRI’s (Emergency Care Research Institute) Health Devices Journal Jim Keller, ECRI’s VP of health technology evaluation and Chris Lavanchy, health devices engineering director, examined the adoption of asset tracking so far, and concluded that ROI has yet to be proven.

They suggest three basic applications for asset tracking. The first is to locate equipment for preventative maintenance and recalls. The second is to locate assets for clinical purposes. The third is to use asset tracking for inventory and workflow optimization. Essentially, Keller and Lavanchy believe that current WiFi solutions only work for the first application, and they say that’s not enough to cost-justify asset tracking. While these systems have promise, ECRI believes that most of the installations to date are pilots in which the true costs have been hidden.

Their study also suggests that ubiquitous WiFi across hospitals is only available in around 20% of cases, and that management of both the tags and the process of the location tracking is more complex has been suggested. They point to one vendor, Agility, which provides on-site staff for that inventory optimization — not quite a painless, scalable solution.

Keller suggests that for asset tracking “the hurdles are not insurmountable, but today is not the best day to buy if you have a choice. Other more affordable solutions are out there.” ECRI suggests that many hospitals are not doing a good enough job recording the rental equipment they have, which may be a place to look for easier bang for the buck. Perhaps that's why, as Cisco's Frank Grant says, asset tracking has taken off “a little slower than we thought in some spaces.”

Despite the caution, asset management technology seems headed in the right direction. The current third-generation tags are smaller, cheaper, and have longer battery life, and WiFi is becoming more ubiquitous as other technologies -- especially VOIP -- spread throughout hospitals.

Also, a few niche vendors, like Aethon with its new Homer robot, are working to plug the gaps in WiFi networks. In the end, the complexity of managing equipment and people in hospitals is a huge problem. Asset tracking, whether WiFi-based alone or supplemented with other technologies, is likely to be a major part of that solution. 

Want to read more expert articles like this? Send an email to:
subscribe-digital_healthcare_productivity@newsletters.digitalhcp.com

Click here to log in.

0 Comments

Add Comment

Text Only 2000 character limit

Page 1 of 1

White Papers & Special Reports

Coupa white paper 92
10 Secrets to Recession-Proof Your Business
Sponsored by Coupa


Read this white paper to discover 10 strategies smart companies deploy to recession-proof their business.
Leaders generally face hard choices on how to mange a company during an economic downturn and
behave in one of three ways:
1) “The ostrich” - Preserve the status quo/hope for the best
2) “The bull in the china shop” - Blindly cut expenses across the board
3) “The fox” - Use the downturn to make your business more effective and position it for future growth

Learn how to behave “like a fox” and use a recession as a means to pounce on emerging trends.



SGI BriefingON image
High-Performance Computing in Life Science & Education
Sponsored by SGI and Intel
The varied collection of Bio-IT World articles and insights assembled in this BriefingON examine key trends in HPC infrastructure and how researchers are putting their best computational resources to use. Provided here are stories and lessons around the effective use of high performance computing in life science. Download the BriefingON.


Waters white paper image
Software Helps Doping Control Lab Streamline Results Management
Sponsored by Waters
The Karolinska University Hospital’s Doping Control Lab tests thousands of samples annually for stimulants, diuretics, and other masking agents. Increased regulatory pressure and new technologies increased the number of samples analyzed creating data management challenges. Waters® NuGenesis® Scientific Data Management System and TargetLynx™ Application Manager software were used to reduce the time required to calculate, review and search results.


Life Science Webcasts & Podcasts

Medidata Solutions

Rising Clinical Trial Delays and Costs - Addressing the Cause, Not the Symptoms 

medidata podcastProtocol complexity is taking a toll on clinical study speed and efficiency: increasingly complicated and ambitious protocols are not only burdening sites and study volunteers but are also prolonging trials and increasing expenses. In response, sponsors have turned to global study placement, restructured site relationships and new site management practices, but the problem remains.

This podcast will discuss:

  • Why these responses address only the symptoms, not the underlying cause, of rising clinical trial delays and costs.
  • Results of a recent joint Tufts University / Medidata Solutions study.
  • New metrics benchmarking protocol design trends.
  • Systematic protocol design improvements and why they are essential to clinical trial performance excellence.

Speakers: Ken Getz, Senior Research Fellow at the Tufts Center for the Study of Drug Development, and Ed Seguine, General Manager, Trial Planning Solutions at Medidata.

Download Now 



More Podcasts

Job Openings

Sequencing Instrument Software Team Leader – Oxford Nanopore Technologies, UK
We are seeking a highly motivated and dynamic individual to join our rapidly growing informatics team, to lead the development of the software and computing subsystem of our revolutionary DNA sequencing system.   The candidate will be required to work to aggressive timelines within an agile development process.   Visit www.nanoporetech.com/vacancies

For reprints and/or copyright permission, please contact The YGS Group, 1808 Colonial Village Lane, Lancaster, PA;

(717) 399-1900 ext. 125, or via email to Ashley.Zander@theYGSgroup.com.