The Business of Untethering in C#

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The Business of Untethering
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the greater the impact on OPEX reduction Stated another way, wireless coverage areas are an example of more is better The more hospital campus areas covered by wireless, the greater the gain in productivity If customers, vendors, and integrators simply looked at the cost of wireless, there would be far less infrastructure, far fewer clients, and very few of the pervasive deployments common today In a pervasive deployment, wireless coverage is available in all places a worker may roam In reality, it does not mean 100 percent coverage from wall to wall, because most workers don t routinely visit some places, such as wiring closets, building heating and cooling system areas, and secured areas Interestingly enough, an increasing number of these once remote areas now also have wireless coverage It is my opinion and experience that healthcare was the first industry to deploy various forms of wireless pervasively in its facilities because it was the first major industry to understand the difference between the cost and value of wireless mobility Education is widely regarded as the first industry to adopt 80211 wireless, but I retain the view that education as an industry does not feature pervasive wireless deployments to the same extent routinely found in healthcare facilities It s interesting to note that pervasive deployments, both inside and outside the healthcare industry, were not driven by aggressive salespersons, manufacturers offering special pricing, or integrators attempting to expand the size of a deployment contract Pervasive wireless deployments were initially, and remain primarily, driven by customers This kind of deployment was ordered by customers long before today s financial modeling tools that illuminate returns on investments and assets Despite the lack of detailed financial modeling tools for wireless, customers pressed ahead with pervasive deployments because they understood early on that such coverage was an essential part of maximizing the value of mobility Pervasive coverage allowed them to reduce OPEX by increasing productivity A number of factors were considered during the push for pervasive rollouts: n n n n n Hourly cost of employees Hours lost due to unproductive practices and technologies Cost of pervasive equipment Payback period Amortization period of the equipment
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An Example: Nurse Productivity
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Assume the average cost of a nurse is $60 per hour (wages plus benefits), and assume the nurse works 40 hours per week About 30 minutes of productivity per day are lost because of the extra steps required to return many times to the nurses station or other places where work is a location rather than an activity Also assume that eight nurses are working per floor and in three shifts per day That leads to a productivity loss of $720 per day Multiplied by 365 workdays, this brings the total productivity loss to
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Wireless Mobility
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$262,800 per year per floor If you then multiply the number of floors by five, you can see a productivity loss of $13 million per year per hospital building Cost of nurse per hour Cost of 30 minutes of lost productivity per day, per nurse Cost of lost productivity eight nurses per shift, per day Three nurse shifts per 24-hour day The above five floors The above times 365 days $60 $30 $240 $720 $3600 $1,314,000
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The preceding approximation is supported in part by a Forrester Research report from February 2006 (wwwciscocom/en/US//prod_white_paper0900aecd80424544pdf) that indicates nurses lose 20 60 minutes per day in attempting to reach other staff members Eighty-four percent of nurses stated in that same report that, more importantly, productivity loss impacts patient care For reference also, at the 2009 Healthcare Information and Management Systems Society (HIMSS) Management Engineering symposium, it was noted that a nurse makes or receives an average of 33 calls per shift When nurses return to the nurse call station 33 or more times per shift, considerable productivity is lost, not to mention unnecessary increased physical fatigue You can readily understand how wireless connectivity that would allow a nurse to take a call anywhere while on shift would provide benefits, including a significant gain in productivity The average 80211 deployment costs approximately $185 per square foot Assume 100,000 square feet per floor, and the equipment cost (infrastructure only) is approximately $185,000 per floor Clients and software are approximately six times that, making the total equipment cost approximately $13 million Maintenance is approximately $75,000 per year, and the equipment typically remains in use for three years, with the maintenance contract renewing each year That brings the total equipment cost plus maintenance to $14 million, including 10 percent interest on the money borrowed for the equipment The hospital will take three years to pay off the equipment, which means a yearly cost of approximately $466,000, to resolve an annual productivity loss that costs the hospital approximately three times that You can see how that even with a quick calculation, which is effectively how the hospitals calculated this for a number of years, the solution is very cost effective If you add the cost of litigation for even a single patient who was injured or died from lack of nurse productivity, you can see how strong the case is for pervasive wireless in a healthcare setting Efforts to reduce OPEX are often focused on simply reducing labor costs Labor cost reduction is often achieved by cutting back on hiring and compensation It can be an effective strategy, but more often than not it weakens the business by reducing morale and personnel quality and increasing work loads Investing in wireless connectivity to improve productivity often increases the vitality and profitability of
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