||In 1995, the National Health Insurance (NHI) governed by the Ministry of Health and Welfare in Taiwan was instituted nationwide. Since the time NHI was conceived, the budget has been running a deficit, frequently relying on government assistance with its financial problems. To solve the problems, the Ministry of Health and Welfare begin to cut costs, in ways which it changed its current reimbursement structure of current fee-for-service basis reimbursement to same pre-determined amount in the same diagnosis related groups reimbursement. This switch was known as Taiwan DRG.|
The Taiwan DRG system has been controversial. Due to its nature of limiting the reimbursements, the hospitals will now try to limit costs to a minimum, therefore limiting the patients for proper care. Since medical devices are responsible for 30% to 40% of hospital costs per DRG reimbursement, hospitals have now the incentive to specifically lower costs in medical devices. One way to lower costs in this area is to use the consignment method in managing medical device inventory. This means medical device suppliers now face a new set of problems with consignment inventory management: discrepancies in inventory, product availability, and overall efficiency in logistics. Suppliers still lack the experience and knowledge to properly execute consignment management with hospitals under the Taiwan DRG system.
DKSH Healthcare is the leading partner for hospitals seeking to stabilize and grow. DKSH offer services ranging from market expansion services, and marketing and sales to physical distribution. Since 2008, our team at DKSH has accumulated many years of consignment management experience, leveraging DKSH’s high tech approach in using the latest tech solutions to solve problems for its partners.
This thesis will observe and analyze DKSH Healthcare’s methods and solutions for consignment management problems. The research and efforts spent with hospitals and suppliers from DHSK are expected to benefit everyone with a more efficient and effective process in consignment management for medical deceives. DKSH will continue to discover new solutions and efficiencies for consignment inventory management as it partners with more hospitals and suppliers in the future.