Hospital Inventory Frequency Calculator

Item & Unit Setup

Item / SKU description

Item category (auto-fills defaults)

Unit cost ($) Cost to hospital per unit

Charge / billing value ($) Revenue lost if uncharged

Units consumed per day Avg per facility

Weekly replenishment cost ($) Paid to distributor / week

Operations & Risk Parameters

Facilities in network Hospitals, ASCs, clinics

Distributor lead time (days) Medline / Owens & Minor: 1-3d

Safety stock on hand (days) PAR-level buffer days

Shrinkage / diversion rate (%) Spoilage + undocumented use + diversion

Stockout impact rate (%) Cases delayed/substituted when out

Clinical substitution cost ($) Labor + alt product premium per event

Emergency procurement premium (%) Spot price above contracted rate

Stockout events per year Per facility, per item SKU

Charge capture miss rate (%) Supply used but not billed. Avg: 6-12%

Expiry / obsolescence rate (%) Annual units expired before use

Counting Labor Cost

Labor rate ($/hr) Supply tech or materials mgmt

Time to count this item (min) Walk + count + reconcile + document

Drug & Formulary Setup

Drug / NDC description

Drug category (auto-fills defaults)

Drug cost per unit ($) Acquisition cost (WAC or contract)

AWP / charge value ($) Billed AWP or charge per unit

Units dispensed per day

Weekly replenishment cost ($)

Pharmacy Risk Parameters

Facilities in network

Lead time (days) Cardinal / McKesson: 1-2d

Safety stock (days)

Diversion / waste rate (%) Undocumented loss + diversion risk

Formulary switch cost ($) Pharmacist labor + alt drug premium + clinical review

Emergency procurement premium (%)

Stockout events / year

Charge capture miss rate (%) Dispensed but not billed. 340B compliance risk.

Drug expiry rate (%)

Regulatory audit penalty ($) Avg penalty per DEA / Joint Commission finding

Counting Labor Cost

Labor rate ($/hr) Pharmacy tech (lower) or RPh (higher)

Time to count this drug (min) Count + lot/exp verification + documentation

OR / Procedure Item Setup

Item / implant description

Item category (auto-fills defaults)

Item cost per unit ($)

Charge / billing value ($)

Units used per day (all ORs)

Weekly replenishment cost ($)

OR Risk Parameters

Facilities in network

Lead time (days) Consignment check-in + restocking

Safety stock (days)

Shrinkage / implant waste (%) Opened but unused + sterility breaks

Case delay rate when short (%)

OR time cost per hour ($) Fully loaded OR overhead + staff. Avg: $2,500-$4,000/hr

Avg case delay duration (min)

Emergency procurement premium (%)

Stockout events / year

Charge capture miss rate (%) Implant log gaps. Avg OR: 8-15%

Counting Labor Cost

Labor rate ($/hr) OR supply coordinator / scrub tech

Time to count this item (min) Implant log + count + lot verification

Counting Frequency — Compare Two Scenarios

Scenario A — Frequent

More frequent counting

Earlier detection, tighter PAR

Scenario B — Infrequent

Less frequent counting

Extended blind window

Per-Stockout Cost — Scenario A vs. B

Scenario A

Daily counting

Avg lag: 0.5 days

Scenario B

Weekly counting

Avg lag: 3.5 days

Annual P&L Impact (— stockouts/year, — facilities)

Annual cost
Scenario B

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Annual cost
Scenario A

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Gross annual
savings

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Net savings
(after labor)

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Scenario B — total annual cost—

Scenario A — cost (losses + extra labor)—

Net annual savings—

Charge Capture & Compliance Exposure

Counting Labor ROI

Annual labor
Scenario A

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Annual labor
Scenario B

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Payback period

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Blind Window Risk

Cost Breakdown Chart — Scenario A vs. B

Clinical & Financial Insights