2. CHAPTER © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8 Managing Office Supplies

3. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-2 Introduction Essential to evaluate and replenish the offices supplies before shortage occurs Skills include –Evaluation –Replacement –Organization –Payment for expendable items

4. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-3 Organizing Medical Office Supplies Responsibilities for managing an office –Purchasing supplies –Maintaining supplies –Taking inventory of equipment and supplies –Evaluating and recommending equipment and supplies –Negotiating prices Goal in managing supplies: efficiency –Produce desired result with the least Effort Expense Waste

5. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-4 Organizing Supplies Supply = expendable items –Items used and restocked –Examples: prescription pads, pencils, etc. Durable items –Items used indefinitely –Examples: telephones, exam tables, stethoscopes, etc.

6. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-5 Organizing Supplies (cont.) Two people usually have responsibility for organizing supplies –One for administrative supplies –The other for clinical supplies In large practices, a third individual may handle supplies for durable items such as computers, fax machines, and copiers

7. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-6 AdministrativeClinical General Stationary Insurance forms Pens Clipboards Alcohol swabs Disposable sheaths Tongue depressors Tissue Paper towels Hypoallergenic soap Categorizing Supplies

8. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-7 A supply list can help track and categorize supplies according to need and urgency Incidental Supplies Vital Supplies Periodic Supplies Categorizing Supplies (cont.) Exam table paper, prescription pads Staples, rubber bands Appointment books, holiday cards

9. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-8 Storing Office Supplies Store supplies in a neat, organized manner to prevent –Loss –Theft –Damage –Deterioration

10. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-9 Storing Office Supplies (cont.) Place close to areas of use Storage cabinets –Label storage cabinets and boxes to facilitate finding supplies –Note the shelf life of items and place older items in the front to be used first –Always check expiration dates

11. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-10 Storing Supplies: Administrative Store paper products flat in their boxes or packages Information booklets may be stored upright to save space Envelopes and other paper goods with gummed surfaces must be kept dry to prevent them from sticking

12. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-11 Storing Supplies: Clinical Implement the rules of good housekeeping and asepsis for clinical supplies Sterile items must be kept sterile and clean items clean Chemicals, drugs, and solutions –Keep in a cool, dark place unless refrigeration is required –Keep liquids in original containers and store below dry supplies

13. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-12 Storing Supplies: Clinical (cont.) Poisons and narcotics are to be stored separately –Narcotics must be kept in a locked cabinet Clinical refrigerators –No food items –Monitor and record temperature Refer to Material Safety Data Sheet (MSDS) for storage details

14. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-13 What should you do when placing new items in a storage cabinet? Apply Your Knowledge ANSWER: When placing new items in a storage cabinet, you should check the expiration dates and rotate older items to the front to be used first.

15. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-14 Taking Inventory of Office Supplies Inventory –A list of supply items and quantities on hand –Keeping the inventory accurate requires Careful planning Attention to detail Basic math skills –Accurate inventories prevent the office from running out of needed supplies

16. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-15 Medical Assistant Responsibilities Tracking supplies bought and used Calculating the budget for supplies Selecting supplies and vendors Following purchasing and payment procedures Storing items properly

17. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-16 Medical Assistant Responsibilities (cont.) Inventory filing system Inventory card or record page Reorder reminder cards Inventory reminder kits

18. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-17 Inventory and Ordering Establish regular inventory and ordering times –All staff know when to submit requests –Reduces the need for rush orders When to order early –To avoid shortages on high-usage items –Consider storage capacity Unanticipated shortage of a supply item

19. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-18 Apply Your Knowledge What is necessary to keep an accurate inventory? ANSWER: To keep an accurate inventory you must Plan carefully Pay attention to detail Have basic math skills

20. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-19 Locating and Evaluating Supply Vendors Determine what percent of the budget is needed Compare vendors for: Use reputable vendors Get the best prices $ Prices Quality Service Payment policies Average is 4–6% of annual gross

21. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-20 Competitive Pricing and Quality Unit pricing –Generally lower if larger quantities are purchased –To calculate: divide total cost of package by the quantity, or number of items Rush orders –Cost more than regularly scheduled orders –Learn the average delivery time for each vendor to avoid rush orders

22. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-21 Competitive Pricing and Quality (cont.) Mail-order companies –Usually more economical –Less control over the order –Risk hidden costs Group buying pools –Offices pool resources to qualify for quantity discounts –Convenient for medical offices in the same building Cost controls –Look for ways to reduce cost without sacrificing quality Purchasing groups –Groups of physicians that order supplies together to obtain bulk rate discounts

23. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-22 Benefits of Local Vendors Special services in an emergency situation Information about upcoming sales and specials Personal assistance, such as helping with inventory Part of the community, and good relations between them and the physicians are a plus

24. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-23 Payment Schedules Vendor Payment Terms Vendors invoice Usually describes terms of payments Examples include: $No handling charges for prepaid orders $Discounts if checks are enclosed with the order $Delayed billing for 30 to 90 days

25. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-24 Ordering Procedures Order forms –Orders can be made With traditional order forms By telephone, fax, or online –Be sure to keep a copy of order form –Double-check order form for accuracy Cotton tipped swabs Elastic bandages Tape 2 x 2s 4 x 4s Tongue depressors 3 ml syringes 5 ml syringes Alcohol pads Cotton balls

26. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-25 Ordering Procedures (cont.) Purchase requisitions –Formal requests for purchases –Large purchases may require approval – Purchase orders - preprinted forms, often with consecutive numbers

27. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-26 Ordering Procedures (cont.) Checking received orders –Record the date orders are received on inventory care or record page –Check the shipment packing slip against the order and mark date received on packing slip –MSDS should be provided by manufacturer for any chemical item

28. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-27 Ordering Procedures (cont.) Checking received orders (cont.) –Correcting errors Report all errors to vendor immediately Have the invoice number, order date, and other information handy when reporting an error to the company –Invoices Check against original order and packing slip Document when paid –Disbursements Payment of funds to vendors using a check, cash, or money order

29. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-28 Avoiding Common Mistakes Be aware of dishonest telephone solicitors –It is a good practice not to purchase after an initial telephone solicitation –Request a return telephone number –Check with the Better Business Bureau Be aware of the bait and switch tactic used by some vendors

30. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-29 Apply Your Knowledge Why is it important for a medical office to have an inventory and ordering schedule? ANSWER: Regularly scheduled inventory and order days help a ll staff know when to have requests submitted; this reduces the need for rush orders.

31. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-30 In Summary 8.1Supplies: Vital supplies – Essential to office functioning – Examples – prescription pads and examination table covers Incidental supplies – Purchased quickly – Examples – rubber bands or staples Periodic supplies – Require occasional ordering – Examples – appointment books or holiday cards

32. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-31 In Summary (cont.) 8.2Storing administrative and clinical supplies requires good organizational skills. –Administrative supplies should be stored flat in their original boxes to prevent bending or curling. –Store clinical supplies in clean and protected areas away from damage and exposure to the elements and refer to the rules of asepsis.

33. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-32 In Summary (cont.) 8.3Make sure you track your inventory properly by using reorder reminder cards or inventory cards and a supply checklist. 8.4Establish a regular inventory and ordering system so that supplies will not be depleted before the next ordering cycle.

34. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-33 In Summary (cont.) 8.5Always locate and use reputable vendors when ordering supplies. Find vendors with competitive prices, and make comparisons. 8.6Savings can add up when you obtain the best quality supplies while controlling costs. Purchasing in groups and sometimes using mail-order supplies will be beneficial in the long run.

35. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-34 In Summary (cont.) 8.7Ordering procedures may vary from office to office. Properly complete the paperwork, check orders received, correct errors in shipment and make payments on time. 8.8When you receive your supplies, check for any errors. If there are errors, notify the supplier immediately.

36. © 2011 The McGraw-Hill Companies, Inc. All rights reserved. 8-35 When you go to buy, use your eyes, not your ears. - Czech Proverb End of Chapter 8