Why Your PIMS is Costing Your Practice Lost Revenue

Posted by The CUBEX Team | Nov 8, 2018 12:22:00 PM

When it comes to inventory management, it's hardware + software for the win.

Of the leading practice management software platforms, each has its selling points and unique approach to financial management, client and patient records, and payment processing. DMV360 offers a useful comparison chart of the leading veterinary PIMS software packages.

Whichever PIMS solution may be the right fit for your veterinary practice, three things are clear:

  • Adoption and usage of the tool is more important than selection of the tool itself
  • Cloud-based solutions are simplifying on-boarding and opening up new opportunities for integrations
  • Inventory management requires more than just a software solution

Approximately one in four veterinary practices relies on their PIMS to manage inventory, second only to ‘the clipboard’—manual records. While it makes sense to use all available functionality of such a core investment, a software-only approach to inventory management can:

  • Open the practice up to DEA compliance risk
  • Lose charge captures, resulting in lost revenue
  • Bloat inventory spend, cutting into profit margins

After more than 20 years in inventory management, CUBEX recognizes that, regardless of type and size of practice, a comprehensive solution is required. While most veterinary practices who utilize their PIMS for inventory management believe this is an effective solution, those practices still can realize additional 5-10% net income with the implementation of a CUBEX solution.

 

DEA Compliance Risk

Software-only inventory management fails when it comes to narcotics management. DEA compliance requires both specific standards for hardware, and extensive logging and reporting. PIMS inventory modules alone will not require your staff to change your drug controls.

Without automated controls on hardware and software, you’re susceptible to errors and diversion, and at risk in a DEA audit. 

Lost Charge Capture

Pharmaceuticals and supplies account for 30% of the revenue in most veterinary practices. By utilizing your practice management software for invoicing, you’re reliant on reactive billing.

Some practices focus on the hardware for inventory management and narcotics management. While proper physical storage is important, this approach relies on manual transcription of charges.

Bloated Inventory Spend

You’ve heard the term, “garbage in, garbage out.” The value of your PIMS for inventory management is only as good as the data. With manual, sporadic inventory counts, and concern over running out of critical inventory, you’re likely spending more than necessary on inventory. Check out our guide for key financial benchmarks.

Download Workbook

Controlled substances for veterinary health are frequently on backorder, so practices are stocking up when they can. Increased inventory levels can drive up your loss due to obsolescence (expiration) and shrinkage (theft). Inventory write-offs can drive up total clinic costs by 2-4%.

 

Improving Inventory Management with Your PIMS: CUBEX

CUBEX hardware + software systems are designed with veterinary practices and hospitals in mind, offering a variety of configurations to fit your inventory needs and processes. CUBEX unlocks the power of the PIMS, with bi-directional integration with most practice software systems.

 

Curious about how an integrated solution could work with your PIMS? 

Request Consult 

Topics: Inventory Management