Country Level Cost Saving with IT System

Centralized Resource Management System (CRMS), a web based IT system being used since 2009, has given Ministry of Health of Turkey(MoH) the ability of centralized monitoring, controlling and policy making by standardizing and integrating public hospital inventory systems. MoH used CRMS to help better management of 827 public hospital inventories and to decrease stock levels. This system not only helped the MoH to monitor hospital inventories but also enabled the transfer of pharmaceuticals and medical supplies among hospitals. Materials which are no more needed by hospitals or which exceeded the maximum stock limits could be reallocated to other hospitals. Such transfers and maximum stock level requirement for hospitals yielded significant economic cost saving in country level.  This case study analyzes effects of CRMS on country-level financial outcomes. Success of the system has been evaluated using data for Turkey’s annual amount of total hospital expenditure and stock with total number of inpatients, outpatients and surgical interventions. A compound index (with weighted values of number of outpatients and inpatient days) is used to measure per capita change in the trend of pharmaceutical and material purchases and stock amount (2009-2012). Values are adjusted with consumer price indexes for medicine and health items for these years. After drastic decrease in per capita stock amounts in monetary terms in 2009 to 2010 (while per capita purchases decreased slightly), per capita stock amounts increased at a lower rate than the per capita purchase amounts until 2012. Compared to the 2009 level, per capita purchases for both pharmaceuticals and materials increased although per capita stock amount declined. As a expenditure and stock with total number of inpatients, outpatients and surgical interventions. A compound index (with weighted values of number of outpatients and inpatient days) is used to measure per capita change in the trend of pharmaceutical and material purchases and stock amount (2009-2012). Values are adjusted with consumer price indexes for medicine and health items for these years. After drastic decrease in per capita stock amounts in monetary terms in 2009 to 2010 (while per capita purchases decreased slightly), per capita stock amounts increased at a lower rate than the per capita purchase amounts until 2012. Compared to the 2009 level, per capita purchases for both pharmaceuticals and materials increased although per capita stock amount declined. As a conclusion, it can be said that the policies implemented to improve stocks of materials and pharmaceuticals actually helped in improving efficiency of the system and reducing the cost for the hospital sector.

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