This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Avaya Solidifies Hold in Health Care With Acquisition

Avaya recently acquired Nortel's Enterprise Division through a bankruptcy process, and uncovered tremendous opportunities in the health care sector.

Sanjeev Gupta, general manager of Healthcare Solutions at Avaya, recently explained what is occurring and what Avaya is doing to help solve major problems.

Presently, there are over 5,000 health care providers, and they all face a common set of issues. Here's the trend: Operating margins are a huge issue, payments for services are decreasing, the number of patients is increasing, and costs are going up. They face the challenge of increasing revenue with the same amount of assets. There is a shortage of employees as well, specifically nurses.

Studies show that nurses spend one-third of their time on caring for patients while the other two-thirds is for administrative work, which is a clear example of a task that can be expedited with automation.

Sanjeev gave me a very specific problem -- long wait times in emergency facilities at an oncology facility with over 700 beds. Even with an EMR (Electronic Medical Record) System and a bed management system, a lot of the care in this oncology facility still required the coordination of discharge to be handled by nurses.

The actual discharge process can't begin without approval from a primary care physician, after which the nurse has to talk to a specialist to make sure they were okay with the discharge. After receiving that approval, the nurse has to talk to the pharmacy, the outpatient pharmacy, nutrition and dietetics. In addition, she has to call maintenance to wheel the patient out and finally inform the patient's family the time the patient will be discharged. The average discharge time is around 6 p.m.

Avaya has found that the process can be changed so that nurses go into a standard system, and an application handles the administrative processes for them. That's all they have to do -- initiate the process.

In the background, the software handles numerous phone calls, while the nurse continues working.

The result? four hours were shaved off of the discharge process, with every hour equating to about a $1 million net benefit, or $4 million saved in this specific application. You've also let the nurse focus on their work and not the administrative processes that support it.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SI $0.00 0.00%
ADAT $0.21 0.00%
ATHN $125.30 0.00%
CSCO $28.82 0.00%
CERN $73.32 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs