Lesson 12:

MMS

Mary Denneth Fuentes, RMT, MSMT

 MMIS

Materials Management
Information System
MATERIALS MANAGEMENT
SYSTEM (MMS)

• Make sure that services

go successfully from one
source to an end user
To successfully
manage such
information, many
hospitals implement
a form of materials
management
information system
(MMIS).
Manage functions :

–Purchasing
–Accounting
–Inventory
management
–Patient supply
charges
Overview of the Purchasing Process
Purchase Request
• Used internally to
identify a need for
an item
Document which is
made by a user to
notify the
purchasing
department
regarding needed
items and
services.
•This document
specifies
quantities, as well
as a timeframe for
the items
requested. It could
also contain the
authorization
information
needed to proceed
with the purchase.
made, the item
could either be
ordered directly
or a request for a
quotation could be
asked from the
vendors.
 Purchase Quotation
Document for requesting prices and
delivery information from a vendor
before the purchase orderr
Ways to make purchase quotations:
• Single quotations
• Multiple quotation
– In order to create multiple quotations, the
purchase quotation wizard could be used.
– Based on the purchase request report, one
could create online quotations from the report
by marking a checkbox.
– A quotation could also be created from sales
orders by using the procurement
confirmation wizard.
Preferred Vendors
✓On-time performance
✓Offers reasonable cost
✓High quality product and
services
✓Offers fully licensed,
bonded and insured
products and services
✓Good business practices
 Create a
purchase
order from
the chosen
vendor
 Purchase Order
•Legally binding contract which
shows that the seller has
already accepted the order
issued by the buyer
 Purchase Order
• It should contain:
– Information about the buyer and
seller (name, address, contact
details)
– Order number and order date
– Item description (quantity, unit,
total price)
– Shipping information (Shipping date
and address)
– Billing address
– Authorized signature
 Inventory Control
• Johnston (2014) states that inventory
is one of the biggest expenses for
most medical institutions.
Strategies on how to improve inventory control within healthcare facilities:

1. Ensuring Shipment Accuracy

• Tracking medical inventory must involve

checking shipments for accuracy.
• Tracking can catch any errors in filling
Strategies on how to improve inventory control within healthcare facilities:

1. Ensuring Shipment Accuracy

• Checking shipments for accuracy means

ensuring that the received items are the ones
ordered and the supplies are free from
possible damages during transit
Strategies on how to improve inventory control within healthcare
facilities:

• In the field of medicine,

sales projections can be
wildly inaccurate.
Strategies on how to improve inventory control within healthcare facilities:

Alignment With Sales Projections

• Tracking inventory in comparison to actual sales

is essential. This prevents waste, frees up cash
that would have gone to excess inventory and
helps medical companies identify trends they
might not have seen before.
Strategies on how to improve inventory control within healthcare facilities:

3. Compliance With Regulations

Item Master Maintenance
 Reorder Level
•Minimum quantity of an item
that a company has stock
 ‘’Min” Value
•Representativ
e of a stock
level that
prompts a
reorder
 ‘’Max” Value
•Representativ
e of a new
targeted stock
level that
follows the
reorder
 Enquiries
•Mark the beginning of the
purchasing process
•These establish the
relationship between the
entity and the right supplier.
 Quotations
•Contains vital information
regarding the requirements
– Price
– Delivery details
– Payment terms
 Orders
• The buyer shows
the intention to
purchase the
required item by
issuing a
purchase order
• P.O (Contract to
the health care
institution and
supplier)
 Invoices
•Äka bill
•Commercial document that
indicates the product, the
ordered quantity and the
agreed price.
 Invoices
•The supplier issues this to the
buyer to show the products
and services that were sold or
provided by the buyer
 Documents
• Statutory
requirements used
during purchase and
sales transactions.
• This ensure smooth
transaction and
completion of the
process
Receiving & Tracking Items
1. Signing for Deliveries

• The person receiving the delivery should

inspect the items before signing the
receipt and should also initial the packing
list.
Receiving & Tracking Items
1. Signing for Deliveries

• Then, submit the packing list to the

appropriate person (Accounts Payable,
Requester, Asset Management) for
financial reconciliation.
Receiving & Tracking Items
2. Refusing Delivery

• Whenever possible, departments should

refuse to accept shipments if they are
unable to confirm that the order was
placed by their department, or if the
packing appears sufficiently damaged to
warrant concern.
Receiving & Tracking Items
3. Record Retention

• During the receiving process, the Receiving

Department takes physical possession and
legal ownership of the shipment.
• Therefore, it is important for the supplier
to provide the department with a packing
list for all shipments delivered to the
department.
If the supplier fails to provide
the packing list, the
department should contact the
supplier to request that copies
be sent to the department for
its files.
Receiving & Tracking Items
4. Inspecting a Shipment

• Persons receiving shipments should, upon

acknowledging receipt of an order, conduct an
inspection to verify the following minimum
conditions
Receiving & Tracking Items
4. Inspecting a Shipment
• The products conform to the purchase
order requirements and other relevant
documents
– correct model number, description, size, type,
color, ratings
– Quantity ordered
– No damage or breakage.
– Unit of measurement count is correct
– Delivery documentation (packing list,
certifications, etc.) is acceptable.
– Perishable items are in good condition and
expiration dates have not been exceeded.
Products are operable or functional.
Receiving & Tracking Items
5. Partial Deliveries

• Departments should contact the

appropriate Purchasing Agent whenever a
purchase is received as a partial delivery
without acknowledgement or notification
from the supplier.
• This information is typically noted on the
packing list.
Receiving & Tracking Items
6. Tracking of Goods

• Goods can be easily tracked /traced when

they are managed by Serial or Batch.
Purchase Returns along with Returnable/
NR Gate pass

• Defective or substandard quality goods

• Incorrect order delivery
• Deteriorated purchase
• Repair
Expired Stocks/Inventory
Upon reaching their expiration dates, some
goods, such as food and medicine, can no
longer be utilized.
In rare instances, it may be sold to other
parties at a lower cost.
However, as soon as inventory expires and its
value falls below its original cost, this must
be reflected in the financial records so as
not to misstate the financial statements.
 The amount that reduces
inventory in your records is
recognized as a loss that is a
reduction in profit (Keythman,
2017).
 Quarantine Stock/Inventory
• When undecided about how to handle
defective goods, whether to be sold as
scrap, reworked, returned, or used as it
is, a quarantine location or warehouse
can be used to temporarily house them
until a final decision has been reached.
Quarantine Stock/Inventory

Inventory is put into quarantine if initially

rejected during:
• Production, upon completion of an
operation, when specified as “Move
Rejected End Item to Quarantine”
Quarantine Stock/Inventory
• Inbound inspection upon receipt of:
– Manufactured end items
– Purchased items
– Sold items on sales return orders
– Enterprise Planning distribution orders
– Outbound inspection upon issue of
Materials to production
 Issue Methods
• FIFO
• LIFO
• FEFO
 Issue Methods
First In, First Out (FIFO)

• Inventory items are sold in the order they

are purchased.
• This is the most common technique
 Issue Methods
Last In, First Out (LIFO)

• Last to enter the system are sold first.

• This is common among non-perishable
items like petroleum, minerals, and
metals.
 Issue Methods
First Expired, First Out (FEFO)

• Materials are sold based on date they

should be consumed, regardless of when
it was purchased.
Generic Tax formula Configurations

• Tax on sales and purchases

• Additional taxes like VAT
• Sales and Use tax as in USA
• Withholding tax like income tax in
India
 Periodic physical stock taking and
Adjustments with tracking
• An inventory count is a process where a
business physically counts its entire
inventory.
• Mandated by financial accounting
• Tactics to ensure accurate and convenient
counting (RFID and barcode)
Lesson 13
 Lesson 13

Change Management
in
Health Informatics
 Kinds of Changes
a. Operational changes
b. Strategic changes
c. Cultural changes
d. Political changes
 Kinds of Changes
a. Operational changes

• Can influence the way dynamic business

tasks are led, including the
computerization of a particular business
segment
 Kinds of Changes
b. Strategic changes
- occur when the business direction, in
relation to its vision, mission, and
philosophy, is altered.
- For instance, changing the business
technique from business growth to
increasing market share in the overall
industry is a case of strategic change.
 Kinds of Changes
c. Cultural changes

- Influence the internal organizational culture

- Example, the way the business is
conducted
 Kinds of Changes
d. Political changes in human resources
occur primarily due to political reasons of
varying types, commonly changes that
happen on top patronage levels in the
government agencies.
• Change is inevitable and pervasive.
Organizations are driven to change in
order to respond to the many
pressures they encounter from their
environment. These pressures usually
include:
– Global competition;
– Changes in customer demand;
– Technological advances; and
– New legislation.
What is Change Management?
• Series of tools, techniques and processes
aimed at successfully effecting change.
What is Change Management?
Downey (2008) describes common tools and
techniques that can be used during a
change initiative:
• Gathering information about the “as is”
and ˜to be” status of the current process
• Process mapping for both ˜as is” and ˜to
be” processes
• Gap analysis
• Business case development
What is Change Management?
Downey (2008) describes common tools and
techniques that can be used during a
change initiative:
• Project management
• Problem solving
• Requirements elicitation techniques
• Negotiation skills
Change Management Process Models

1. Kurt Lewin’s Unfreeze-Change-Refreeze

Model
2. Proski’s ADKAR Model
3. Kotter’s Change Model
Change Management Process Models

1. Kurt Lewin’s Unfreeze-Change-

Refreeze Model
• Three-step Unfreeze-Change-Refreeze
model.
• Used as the basis for many change
management strategies.
Change Management Process Models

2. Proski’s ADKAR Model

• Awareness of the business reasons for
change;
• Desire to engage and participate in the
change;
• Knowledge about how to change,
• Ability to implement change,
• Reinforcement to ensure change sticks
Change Management Process Models

3. Kotter’s Change Model

• 8-Step Model of Change, developed by
Harvard Business School of John Kotter
• Focuses on efficient and effective
change management in a competitive
world.
Change Management Process Models

3. Kotter’s Change Model

• Highlights include building a strong,
collaborative team and a solid strategy;
creating effective communication
channels; supporting staff
empowerment; using a phased and
steady approach; and securing the
change within an organization culture
(QuickBase, 2017
Key Performance indicators (KPIs)

• For this to be successful, the

organization needs to set clear
objectives and settle on that can be
used to track and evaluate the
change initiative against its
objectives.
 These KPIs might include:
• Reducing rework by x%
• Improvement in stakeholder satisfaction, for
example, customer/employee surveys
• Reduced time to market
• Enhanced speed of delivery
• The return on investment, that is, the total
cost to implement the initiative versus total
savings gained from the initiative per period.
Health Information Management Professionals
fall into many job categories with varied titles:
• Health Information Management
Department Director
• Health Information Management System
Manager
• Information Security Officer
• Chief Privacy Officer
• Health Data Analyst
• Health Record Technician Specialist
• Clinical Coding Specialist
 Health Information Management
Professionals fall into many job categories
with varied titles:
• Patient Information Coordinator
• Physician Practice Manager
• Health Information Administrator
• Revenue Cycle Specialist
• Director of Quality Management
• Health Information Manager
• Health Information Technologist/Technician
s
Lesson 12
Ethics, Privacy and
Security
 General Ethics
1. Autonomy
• Allow individuals to make their
own decisions
• No one human person does not
have the authority nor should
have power over another human
person.
 General Ethics
2. Beneficence and Non-maleficence
- do good and do no harm
- Beneficence (usage of stored data)
- Non-maleficence (how the stored data is
protected)
 Information Ethics
• Involves the ethical behavior required of
anyone handling data and information
• Seven principles: privacy, openness,
security, access, legitimate
infringement, least intrusive
alternatives, and accountability
 1. Principle of Information-Privacy and
Disposition
• All persons and group of persons have a
fundamental right to privacy, and hence
to control over the collection, storage,
access, use, communication,
manipulation, linkage and disposition of
data about themselves.
2. Principle of Openness
• The collection, storage, access, use,
communication, manipulation, linkage
and disposition of personal data must be
disclosed in an appropriate and timely
fashion to the subject or subjects of
those data.
 3. Principle of Security
• Data that have been legitimately
collected about persons or groups of
persons should be protected by all
reasonable and appropriate measures
against loss degradation, unauthorized
destruction, access, use, manipulation,
linkage, modification or communication.
 4. Principle of Access
• The subjects of electronic health
records have the right of access to
those records and the right to correct
them with respect to its
accurateness, completeness and
relevance.
5. Principle of Legitimate Infringement

• The fundamental right of privacy and of

control over the collection, storage,
access, use, manipulation, linkage,
communication and disposition of
personal data is conditioned only by the
legitimate, appropriate and relevant data-
needs of a free, responsible and
democratic society, and by the equal and
competing rights of others.
 6. Principle of the Least Intrusive
Alternative
• Any infringement of the privacy rights of a
person or group of persons, and of their
right of control over data about them,
may only occur in the least intrusive
fashion and with a minimum of
interference with the rights of the
affected parties.
 7. Principle of Accountability
• Any infringement of the privacy rights of a
person or group of persons, and of the
right to control over data about them,
must be justified to the latter in good
time and in an appropriate fashion
Privacy, Confidentiality and Security
• Privacy generally applies to individuals
and their aversion to eavesdropping
• Confidentiality is more closely related to
unintended disclosure of information.
Someone who is spying
on a certain person
and to find out about
his visit to an
acquired
immunodeficiency
syndrome (AIDS)
clinic is violating
that person’s privacy.
• If someone breaks
into the clinic to
view an individual’s
patient record,
that perpetrator is
in violation of
confidentiality.
 Levels of Security
• Administrative
safeguards
Levels of Security
Levels of Security
 The National Research Council (1997) emphasizes
that technological security tools are essential
components of modern distributed health care
information systems, and that they serve five key
functions:

• Availability
– ensuring that accurate and up-to-date
information is available when needed at
appropriate places;
• Accountability
– helping to ensure that health care providers
are responsible for their access to and use of
information, based on a legitimate need and
right to know;
• Perimeter identification
– knowing and controlling the boundaries of
trusted access to the information system, both
physically and logically;

• Controlling access
– enabling access for health care providers only
to information essential to the performance of
their jobs and limiting the real or perceived
temptation to access information beyond a
legitimate need;
• Comprehensibility and control
– ensuring that record owners, data stewards,
and patients understand and have effective
control over appropriate aspects of
information privacy and access.
Levels of Security in the Laboratory Information System

1. Register patient
2. Order test
3. Collect Sample
4. Receive sample
5. Run Sample
6. Review results
7. Release results
8. Report results
Lesson 14
Philippine Data Privacy Act of 2012

• Aims to protect the fundamental human

right of privacy, of communication while
ensuring free flow of information to
promote innovation and growth.
(Republic Act. No. 10173, Ch. 1, Sec. 2).
 The main principles that govern the
approach for the Data Privacy act include:
• Transparency;
• Legitimacy of purpose; and
• Proportionality.
• Comprehensibility and control—ensuring
that record owners, data stewards, and
patients understand and have effective
control over appropriate aspects of
information privacy and access.
 Data Privacy Act

• Race, ethnic origin, marital status, age,

color, and religious, philosophical or
political affiliations;

• Health, education, genetic or sexual life

of a person, or to any proceeding or any
offense committed or alleged to have
committed;
 Data Privacy Act

• Issued by government agencies

"peculiar" (unique) to an individual,
such as social security number;

• Marked as classified by executive

order or act of Congress.
 Exceptions:
• Consent of the data subject;
• Pursuant to law that does not require
consent;
• Necessity to protect life and health of a
person;
• Necessity for medical treatment;
• Necessity to protect the lawful rights of
data subjects in court proceedings, legal
proceedings, or regulation.
 Penalties
• Any combination or series of acts
enumerated above shall make the person
subject to imprisonment ranging from three
(3) years to six (6) years, and a fine of not
less than One million pesos
(Php1,000,000.00) but not more than Five
million pesos (Php5,000,000.00) (Republic
Act. No. 10173, Ch. 8, Sec. 33).
• The Cybercrime Prevention Act of
2012, officially recorded as
Republic Act No. 10175, is a law in
the Philippines approved on
September 12, 2012. It aims to
address legal issues concerning
online interactions and the Internet in
the Philippine
• Access refers to the instruction,
communication with, storing data
in, retrieving data from, or
otherwise making use of any
resources of a computer system
or communication network.
• Alteration refers to the
modification or change, in form or
substance, of an existing
computer data or program.
• Communication refers to the
transmission of information
through ICT media, including
voice, video and other forms of
data.
• Computer refers to an electronic,
magnetic, optical, electrochemical, or
other data processing or
communications device, or grouping
of such devices, capable of
performing logical, arithmetic, routing,
or storage functions and which
includes any storage facility or
equipment or communications facility
or equipment
• Computer data refers to any representation
of facts, information, or concepts in a form
suitable for processing in a computer
system including a program suitable to
cause a computer system to perform a
function and includes electronic documents
and/or electronic data messages whether
stored in local computer systems or online.
• Computer program refers to a set
of instructions executed by the
computer to achieve intended
results.
• Computer system refers to any
device or group of interconnected
or related devices, one or more of
which, pursuant to a program,
performs automated processing of
data.
• Without right refers to either: (i)
conduct undertaken without or in
excess of authority; or (ii) conduct
not covered by established legal
defenses, excuses, court orders,
justifications, or relevant principles
under the law.
• Cyber refers to a computer or a
computer network, the electronic
medium in which online
communication takes place.
• Critical infrastructure refers to the
computer systems, and/or
networks, whether physical or
virtual, and/or the computer
programs, computer data and/or
traffic data that has the incapacity
or destruction of or interference
with the system and security
• Cybersecurity refers to the
collection of tools, policies, risk
management approaches, actions,
training, best practices, assurance
and technologies that can be used
to protect the cyber environment
and organization and user’s
assets.
 Database
Refers to a representation of
information, knowledge, facts,
concepts, or instructions which are
being prepared, processed or stored
or have been prepared, processed or
stored in a formalized manner and
which are intended for use in a
computer system.
 Interception
• refers to listening to, recording, monitoring
or surveillance of the content of
communications