Medical Proof of Delivery

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One of the biggest challenges faced by medical delivery companies is obtaining proof that a delivery was made or that an item or medication was returned or refused by the recipient.  This issue alone accounts for millions of dollars in lost inventory due to medication having to be re-delivered and not being able to track and assign equipment. Common obstacles to acquiring proof of delivery (POD) are:

• Absent or illegible signature of the recipient
• Lack of delivery documentation, such as a printed receipt or an electronic record
• Undocumented relationship of the signer (e.g., neighbor, spouse, sibling, etc.) to the beneficiary
• Missing date and time of delivery
• Incomplete description of the delivered item(s)

A convenient and user-friendly solution to the proof of delivery headache is to utilize a handheld mobile computer or barcode scanner, mobile data collection software, and a mobile printer.

To explain how this solution works, we will use a fictitious company named Acme Medical Express as an example.

Acme Medical Express is a delivery company specializing in delivery of pharmaceuticals. Their customers range from large nursing home groups to individual home care patients. The service that they offer their customers is fast delivery of medications and other items that are required by the customer on a daily basis. The business is conducted via routes.  A route is based on the location of the customer in proximity to other deliveries.  A route begins with the driver pickup of the necessary products and ends when the final stop has been delivered.  Acme Medical Express services their geographic area with several drivers, each with multiple routes.

Acme Medical Express currently uses the following procedure:

1) The customer calls in a prescription to the pharmacy, and the pharmacy prepares the medication and puts it in a "Package" by the door to be picked up by an Acme Medical Express driver.

2) When the driver arrives at the pharmacy, he or she is given a "Route Sheet" which he or she fills out according to the number of Packages. The route sheet has each stop listed, and the driver looks through the shelves to find a Package associated with that delivery stop.  As the Packages are collected, the driver makes a note if there is a Package for that stop on the delivery route.

3) The driver takes the Packages to his or her vehicle and begins the route. At each stop, the driver delivers the Packages, at which time they are opened and inventoried. The person at the delivery location signs for the delivery on the Route Sheet, and the driver picks up any returns and resumes his or her route.

4) Once all of the stops are complete, the driver returns to the pharmacy with any items that were refused or returned by the customer. The Route Sheets are compiled by Acme Medical Express administrative personnel, and the customers are billed accordingly.

While the success of the above procedure has taken Acme Medical Express' business to new heights, it was determined that if the company continues to grow at its current rate, a few problems will need to be addressed:

• Unknown delivery status — A pharmacy may get a call from the customer asking about a particular delivery. Under the current system, the driver is called via cell phone and directed to stop his or her route to search for the delivery.  This slows the driver down, thereby causing other deliveries to be late. The pharmacy needs some way to look up the status of the delivery.

• Proof of delivery — The pharmacy needs a receipt indicating proof of delivery for their records. With the current system, there is no itemized list of the items that are delivered to each facility.

• Paperwork — With multiple drivers and multiple routes per driver, the Route Sheet paperwork becomes difficult to manage. If a customer questions a bill, it can result in an Acme Medical Express admin person having to sort through thousands of Route Sheets. This activity is consuming 100% of one employee's time. As the company grows, it will require more bodies just to manage the paperwork. Acme Medical Express needs a more automated approach so that their customers have better access to the information without the need to pick up the phone.

• Accuracy — The system relies on visual observations, and mistakes are known to happen. An electronic proof of delivery system would reduce human error.

Solution to the Proof of Delivery Problems

The problems encountered by Acme Medical Express can easily be solved by integrating a combination of web- and handheld-based applications into their delivery process:

• Web application — This application will allow various types of users to get access to the information that they need at any time. This component will also serve as a medium from which to configure the system, as well as print reports. All of this will be based on a "Logon Permission" system in which only certain users will have access to certain system features.

• Handheld application — This application will replace the Route Sheets and give the driver the ability to be directed by the handheld as to the order of the stops. Once at a stop, the handheld will scan the prescriptions and print a receipt. The handheld will capture a signature from the personnel at the delivery location. The handheld will transmit back to the website the status of the route and the deliveries on the route in real time through a WWAN network (CDMA, GSM/GPRS).

"The Bottom Line"

If you are a DMEPOS (durable medical equipment, prosthetics, orthotics and supplies) supplier, you are required by federal law to obtain proof of delivery, in accordance with 42 CFR, §424.57(12). Even if you are not a DMEPOS supplier, it is strongly recommended that you adopt an efficient and reliable proof of delivery system so that the aforementioned types of problems do not hinder your company's growth and profit potential.

American Barcode and RFID can provide a custom POD solution tailored to your business. Fill out the form on the left-hand side of this page for a Free Mobility Assessment to see if a Proof of Delivery System can help you reduce costs and increase revenue. Alternatively, you may call us at the number below.

Call 1-800-281-3056 for a Free Mobility Assessment.