How Storage Impacts Your Patients & Your Bottom Line | E. 116

The Healthcare Leadership Experience

Storage in healthcare is often seen as a low priority. Brad Fitzpatrick of FitzRight Storage Solutions explains why it plays a critical role for hospitals to Jim Cagliostro.

Episode Introduction

Brad explains why he is potentially in the business of ‘’life and death,’’ how Covid changed the storage landscape and the opposing views of storage as luxury versus necessity. He also highlights the positive impact of storage on hospital margins, and shares why success in business comes from a focus on customers and ‘’attracting’’, not chasing.

Show Topics

• Two common storage pitfalls

• The impact of Covid-19

• Storage is ‘’potentially life and death’’

• Convincing the C-Suite

• Transforming relationships: A storage success story

• Leadership tip: Focus on your passion

04:15 Two common storage pitfalls

Brad explained why hospitals push storage down the list of priorities.

‘’I would say probably the number one would just be the misconception that optimizing your storage is more of a luxury than a necessity. And everybody has different reasons for not moving forward, or for lack of a better word, neglecting. Whether it be, "Well, we intend on doing that one day." Or, "It's out of the budget." Those two are usually the biggest ones. But the one day is a slippery slope because you don't want to wait until you have a fire till you get the sprinklers installed. ‘One day we’ll do it.’ ‘’

05:50 The impact of Covid-19

Brad said the storage landscape changed a lot after the pandemic.

‘’I'm sure this applies to everything, and it won't surprise you when I say it, but Covid. Once Covid happened, and the pressure came on unexpectedly, I think everybody was able to assess how prepared or unprepared they were when the chips were down. And then, once that dust settled, there were some hospitals that said, "Okay, we never want to be caught off guard like that again. What areas can we fix? How can we fix it?" But then, there were other facilities that said, "We'll wait until the wheels fall off." And, actually, there is one hospital I spoke to recently, and they were told that, "Well, wait until the wheels literally fall off and then we'll redo the room."

11:25 Storage is ‘’potentially life and death’’

Brad said access to supplies and equipment can improve patient outcomes.

‘’Yeah, I don't think it would surprise you that, first and foremost, I think it impacts patients with reduced delays. We're in the business of potentially being life and death. So quick access to supplies and equipment, it minimizes any treatment delays, and that also improves patient outcomes. That said, also, I think the professional environment, a well-oiled machine doesn't work as well if the gears aren't where they should be. A well-organized hospital creates more of a professional and a reassuring environment which, for their patients and their families, can really go a long way. But hospitals aren't exclusive. A library runs a lot better when it's organized. A restaurant, a law firm, everything works better when things are where they should be and there's no surprises.’’

15:09 Convincing the C-Suite

Brad explained the advantages for leadership in recognizing the value of storage.

‘’I don't really see myself as the type of salesman who's really trying to convince anymore. I'm more of attract, don't chase. But that said, when I come in, I can read the room. I know when I'm here to give a bandaid, and then I know when I'm here to give open heart surgery. But that said, there's an increasing number of individuals who see the value in storage after years of working with me. And some of the best projects I have are when these individuals, they get relocated to a new facility with a higher role. And then they have a whole clear canvas that they're able to paint and make their own baby and really create. And I don't think it's a coincidence that the individuals who prioritize organization and storage are the ones who are finding themselves getting these new roles and being scouted for them. It speaks for itself, I think.’’

18:14 Transforming relationships: A storage success story

Brad shared an example of how storage transformed a customer relationship.

‘’One comes to mind, is a big hospital system of maybe about 13 hospitals there. Clean supply rooms were all converted over to a system, I won't mention them because I don't want to throw dirt on anybody. But they were sold on the concept on paper. It seemed great. So they went live with it. And out of the gate, they just had a lot of trouble, and they were ghosted by the customer service. And as we said, not to be overdramatic or put my theatrics, but, sometimes, it is potentially life and death. And they just didn't have the margin for error with this system, so they had to take the financial loss. And then they brought me in to convert over to my storage systems. And we had to come in and work weekends when cases weren't going on, and we had to act fast because it's not like one supply room per hospital. It's every floor has a supply room. So I didn't have much of a social life during this conversion, but I learned a lot about my products. I learned a lot about my customer. I like to think that my customer service was put on display, and my relationship with that hospital system became stronger than oak.’’

20:24 Leadership tip: Focus on your passion

Brad said success in business isn’t all about the numbers.

‘’Obviously, I know that I'm not like everybody else. And I zig when everybody else zags sometimes. But I discovered, around 2018, that storage was my passion. And not to sound too corny, but I think it's my purpose in life is working in hospitals, and getting them organized, and helping them run more efficiently. And as I said to you, my numbers are no longer my motivator. I'm not looking at the numbers and saying, "Oh, is this a good month or a bad month, financially?" I don't watch the pot boil. I just focus on taking care of myself. I take care of my customers, and I think the rest just takes care of itself. I'm more mindful and attentive of what my customers are saying, and I'm not trying to push the most profitable product. I'm trying to, if they have a square hole, I have a square peg. If they have a round hole, I have a round peg. I think that that goes a long way. And my relationships, I think, have just really been cemented, especially the last year, ever since I was able to start FitzRight, and really engrave that culture into the company. I feel that my solid relationships have gotten even more concrete with my customers. And where thoughts go, energy flows, and I know that that's a pretty cliche line, but I like to think that my customers can see that. There's a sense of trust. And, again, it's more of attracting, not chasing.’’

Connect with Lisa Miller on LinkedIn

Connect with Jim Cagliostro on LinkedIn

Connect with Brad Fitzpatrick on LinkedIn

Check out SpendMend

You’ll also hear:

Seeing things in a different light; Brad’s career journey to Fitzright Storage Solutions: ‘’I always marched to the beat of my own drum. I know I don't really have the same energy as a lot of people out there, but I always found that I saw things in a different light. … then, in my old age, I became focused in on the relationships with my customers, and pushing more of a solution than one particular product.’’

Luxury versus necessity; two opposing views of storage: ‘’I have customers who I've had a long relationship, who know the value of getting everything in order and the benefits of it. But then, also, when I'm called in, I also know that if I'm called in because Joint Commission was just in, I'm not there to totally redo the thing. I'm there to put a bandaid on it so they could get Joint Commission or inspection off their back.’’

The positive impact of storage on a hospital’s bottom line: ‘’Efficient use of the storage space can reduce need for additional storage spaces. And in tow, that means a better inventory management, avoiding unnecessary purchases, or stocking up on materials that can expire, and overstocking on those types.’’

What To Do Next:

1. Subscribe to The Economics of Healthcare.

2. There are three ways to work with SpendMend:

• Benchmark a vendor contract – either an existing contract or a new agreement.

• We can support your team with their cost savings initiatives to add resources and expertise. We set a bold cost savings goal and work together to achieve it.

• SpendMend can perform a cost savings opportunity assessment. We dig deep into all of your spend and uncover unique areas of cost savings.

3. If you are interested in learning more, the quickest way to get your questions answered is to speak with Lisa Miller at [e-mail] or Jim Cagliostro at [e-mail]. .