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InSmartBudget > Startups > Reducing Medical Waste And Cost With Just-In-Time Testing

Reducing Medical Waste And Cost With Just-In-Time Testing

News Room By News Room November 3, 2023 8 Min Read
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LigoLab Cofounder and Chief Executive Officer.

It should come as no surprise that the healthcare industry generates a lot of data. Still, the sheer volume of it is both staggering and on the rise. Analysts say 30% of the world’s data volume can be attributed to healthcare and that the anticipated compound annual growth in this sector is expected to reach 36% by 2025.

Directly related to this is the rise of medical waste, defined by the World Health Organization as “waste generated by healthcare activities.” Examples include infectious waste like contaminated blood, pathological waste like human organs and tissues, chemical waste like reagents and solvents and general non-hazardous waste that poses no threat. In the U.S. alone, it’s estimated that more than 5.9 million tons of medical waste are generated each year, with the majority of this waste produced by hospitals and laboratories.

Factor in that U.S. clinical labs perform more than 7 billion lab tests annually, and it’s easy to see how important it is for large healthcare organizations to manage critical healthcare data while also implementing efficient and cost-saving workflows that reduce medical waste. I believe that for clinical labs already struggling with major issues like reduced reimbursements for services rendered, a shortage of qualified personnel and rising supply costs, reducing medical waste and its associated cost is not only the right thing to do but also a shrewd business decision.

Utilizing The Just-In-Time Method For Clinical Labs

When a specimen (patient sample) enters a clinical lab as a lab order, it goes through various stages of processing before a report with a test result is produced and shared with stakeholders. This is commonly known as lab workflow, and there are two distinct methods of managing lab workflow.

• Just-In-Time (JIT): A process where specimens are processed and tested immediately upon their arrival at the lab.

• Batch Processing (BP): A process where multiple specimens are gathered over time and then tested simultaneously.

Both approaches have pros and cons, but based on my own experiences working in these settings, I believe the JIT method is more advantageous for many large-scale clinical labs. The primary benefits are that it can significantly reduce medical waste while also improving operational efficiency, minimizing errors and saving money.

The Advantages Of A JIT Lab Workflow

So what are the advantages of the JIT method, and how can large medical laboratory organizations leverage these benefits to reduce waste, streamline lab workflow, improve their bottom line and ultimately provide better patient care? Let’s break that down here.

• Efficiency

With JIT, labs can keep inventory levels low. This can mean less money committed to stored materials, less storage space and less waste of perishable items like reagents because they are ordered as needed.

Batch processing, on the other hand, often means preparing large amounts of reagents ahead of time, creating the potential for waste if it’s not all used during the batch run. Batch processing also typically requires larger amounts of inventory and space.

• Flexibility

The JIT method is typically more adaptable, which can make it easier for labs to handle volume fluctuations while maintaining quality assurance. JIT processing can enable a quick response to accommodate a sudden high demand for a specific test, and it also can make it easier to identify an error in processing and take corrective action before a minor issue becomes a large problem.

With batch processing, error rates are higher and typically discovered only after running the batch. In my experience, the ability of a lab to respond quickly or prioritize a test is also more limited with this method.

• Speed

With JIT, the turnaround time (the wait time from when the lab received the sample to when the result was shared) is often shorter. This is very important when you consider that turnaround times directly impact patient outcomes. Reduced queue times can also be a major differentiator. By processing specimens just as they come into the lab, you can minimize the potential for bottlenecks and delays.

With batch processing, the risk of losing or mislabeling a specimen goes up, and so does the risk of cross-contamination, something that can happen when a large number of specimens are being handled all at once.

• Customer Satisfaction

As noted earlier, faster processing also typically means faster results. Additionally, the JIT method allows for customization in the form of specific customer requests or custom tests, which can help improve client and patient satisfaction with the laboratory. Additionally, in my experience, a more engaged and satisfied staff is more often a byproduct of the JIT method because they aren’t subject to the stress of intense workload peaks and repetitive manual steps that typically come with batch processing of specimens.

Limitations And Learning Curves With JIT

Implementing the JIT method does come with its own set of challenges. For one, this method will likely require more intervention by qualified personnel and more overall monitoring of the system. Also, the JIT method may prove to be less efficient in terms of test turnaround times for very large labs that process extremely high volumes of daily samples. Lastly, instrument optimization should be considered, with the JIT method being greatly dependent on all the analyzers working properly all of the time. Any equipment malfunction can immediately stop processing of the single sample, adversely affecting the test’s turnaround time.

Batch processing may still ultimately be the preferred method for clinical labs that run certain types of routine high-volume tests. As an example, complete blood count (CBC) tests are usually processed in batches due to both their high demand and standardized nature. However, if your lab runs critical time-sensitive tests and also wants to help minimize medical waste, I encourage you to consider adopting the JIT method.

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News Room November 3, 2023 November 3, 2023
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