STATag
Milestones Presentation
Daniel Tubbs
Jason Sadler
Joseph Williams
April 14, 2004
Brian Easton
Latricia Simon
Francis Doligosa
1
The STATag
Solutions for
Real-Time
Equipment Tracking
April 14, 2004
2
Problem
Hospitals need to reduce costs to
increase profitability
– From 1997 to 2001, spending on hospital care
increased by $83.6 Billion3
– Hospital gross margins have declined
annually every year since 19973
– Wages & Benefits for nurses account for 36%
of Hospital costs ($166.4 Billion)3
April 14, 2004
3
Percent of Total Hospital Costs by
Type of Expense
Wages &
Benefits
17%
Other Products
(excluding Rx
drugs)
Capital
5%
8%
13%
57%
Prescription
Drugs
Other Services
Cost of Caring: Key Drivers of Growth in Spending on Hospital Care, PriceWaterhouseCoopers, February 19, 2003 (Appendix B)
April 14, 2004
4
The Cost of Inefficiency
35-60% of a nurse’s time is wasted on5
– Searching for equipment
– Clarifying orders
– Entering redundant information
Wasting $58 - $99 Billion annually6
April 14, 2004
5
Solution
The use of STATags will:
Reduce man hours searching for needed
equipment
Lower operating costs
– Save a real $1 for every $4 of efficiency gained7
(Reduction of overtime, increased turnaround, etc.)
Increase staff efficiency
– Increase a nurse’s efficiency at least 10%5
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6
“Brilliant Idea”
- Cindy Jimmerson, founder of reVIEW
(Realizing Exceptional Value in Everyday
Work), and National Lecturer on Hospital
Efficiency
April 14, 2004
7
User Interface Views
•Default screen presents
the user with a list of
items that can be
queried
•User selects item and
selects ‘Query Nearest
Device’ to locate that
closest particular item
An ‘Administrative Use’ button is also available for
authorized personnel to make any necessary
maintenance to the system
April 14, 2004
8
User Interface View
Following query execution, a next screen presents a map of the facility and the
location of the nearest queried item
April 14, 2004
9
STATag Network
`
STATag
Web Browser
User
STATag
STATag
Network Coordinator DB Server
Internal Webserver
STATag
STATag
Database
April 14, 2004
10
Individual STATag
802.15.4 Module
Battery
Microcontoller
Flash RAM (1MB)
April 14, 2004
Usage Module
(In use switch)
Movement Detection
Module
(Gyroscopes &
Accelrometers)
Tamper Detection Module
(Tag Removed Switch)
11
Software Interface
(STATag – Server)
General Specifications
– All STATags have a unique ID
– STATags transmit their location periodically or
when queried
– STATag location data is stored in the
database by STATag ID
– Software interface updates the database
using SQL
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12
User Interface
Allows for fast lookups
User selects type equipment to locate
Query is sent to web server
Web server retrieves the location of the
closest piece of equipment of the selected
type
Position is displayed on a map for the user
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13
Underlying Interface Abstraction
Installation associates the equipment’s
serial number and equipment type with the
STATag’s unique ID
Equipment type queries return all STATag
IDs associated with the requested type
Each STATag’s location is compared to the
requester’s location
Location of the closest STATag not in use
is returned
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14
Objective
Create a Real-Time Equipment
Tracking system using STATags that
increases staff efficiency and allows
hospitals to reduce operating costs
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15
STATags will:
Use “Dead Reckoning” to determine current
location
Use network security
Self-discover & self-configure network
Handle large quantities of equipment
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16
STATags will (continued):
Activate Alarms
Store historical location and usage data
Run without intervention for long periods
– Battery lasts 5-7 years
– Need calibration only when battery is changed
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17
STATags will not:
Prevent theft
Collect or transmit personally identifiable
health information (covered under HIPAA)
Communicate further than 100 feet
between STATags
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Major Risks
Interference with hospital monitoring equipment
– STATag transmits 1% the power of other safe wireless
devices
– Most major Hospitals are implementing WiFi
Conflicts with other 2.4 GHz networks
– 802.15.4 has been designed for interoperability
802.15.4 and ZigBee are new standards and
therefore there maybe unknown issues
– Hardware issues are being resolved by manufactures
– Software issues will be correctable by patching
April 14, 2004
19
Management Plan
The management plan encapsulates the
following:
– Program management overview
– Management structure
– Project team
– Project planning
– Financial management
– Management reviews
April 14, 2004
20
Team Distribution
Project Lead /
Computer
Engineer
Daniel Tubbs
Manufacturing
Director
Personnel
Director
Francis Doligosa
Joseph Williams
Inventory
Manager
Installation
Engineers
Help Desk
Coordinator
Development
Staff
Support
Staff
April 14, 2004
Marketing
& Web
Development
Financial
Director
R&D / QA
Latricia Simon
Brian Easton
Jason Sadler
Technical
Writer
Graphics
Designer
Sales
Manager
Salesmen
Computer
Engineer
Drafter
Office Manager
Accounts
Manager
Accounts
Receivable
21
Evaluation Plan
Monitor milestones
Track budget and schedule
Monitor quality assurance
Track customer impact and satisfaction
Evaluate areas for improvements
April 14, 2004
22
Marketing Plan
Target market: US Hospitals
Installation cost: approximately $392,000
The hospital will recover the installation
cost in only 7.5 months
The hospital will save $6.1 Million over 10
years
Sold via direct sales
April 14, 2004
23
Market Analysis
Our target market is US hospitals:
Hospitals: 5,7942
Total Registered Beds: 975,9622
Estimated mobile medical equipment in
US: Approximately 10 Million4
Potential future market: International
hospitals
April 14, 2004
24
Market Analysis (continued)
Hospital equipment is very expensive and
highly mobile
Equipment tracking is a large problem that
causes:
– Time consuming equipment searches
– Unnecessary equipment purchases
Locating equipment is one of the Top 10
most wasteful hospital activities7
April 14, 2004
25
Hospital Savings
Total Savings
$7,000,000
$6,163,266
$6,000,000
$5,507,717
$5,000,000
$4,852,169
$4,196,620
$4,000,000
$3,541,072
$3,000,000
Total Savings
$2,885,524
$2,229,975
$2,000,000
$1,574,427
$1,000,000
$918,878
$263,330
$0
1
2
3
4
5
6
7
8
9
10
Year
April 14, 2004
26
Funding Plan
Phase 1 – $100,000 SBIR Phase 1 Grant
Phase 2 – $750,000 SBIR Phase 2 Grant
Phase 3 – $200,000 SBA Loan
Break even point – August 15, 2006
Net Profit as of December 31, 2007
$76.4 Million
April 14, 2004
27
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Balance Sheet: Phases 0-2
Balance
$700,000.00
$600,000.00
$500,000.00
$400,000.00
Balance
$300,000.00
$200,000.00
$100,000.00
$0.00
April 14, 2004
28
Balance Sheet: Phase 3
Balance
$90,000,000.00
$80,000,000.00
$76,672,141.46
$70,331,538.42
$70,000,000.00
$64,092,001.53
$60,000,000.00
$57,953,530.78
$51,969,526.16
$50,000,000.00
$46,033,187.68
Balance
$40,197,915.33
$40,000,000.00
$34,463,709.13
$30,000,000.00
$28,830,569.06
$23,351,895.12
$20,000,000.00
$10,000,000.00
$0.00
$18,434,218.02
$14,120,831.12
$10,401,627.82
$7,319,901.50
$4,758,745.56
$2,761,453.36
$1,317,918.31
$451,433.79
Jul,
2006
April 14, 2004
Aug,
2006
Sep,
2006
Oct,
2006
Nov,
2006
Dec,
2006
Jan,
2007
Feb,
2007
Mar,
2007
Apr,
2007
May,
2007
Jun,
2007
Jul,
2007
Aug,
2007
Sep,
2007
Oct,
2007
Nov,
2007
Dec,
2007
29
Major Milestones – Phase 0
3-May-04
3-May-04
April 14, 2004
SBIR Grant Application
SBIR Presentation
30
Deliverables - Phase 0
12-Jan-04 Project Start
11-Feb-04 Individual Project
Presentation
17-Mar-04 Feasibility Presentation
14-Apr-04 Milestone Presentation
3-May-04
Website Complete
April 14, 2004
31
Major Milestones – Phase 1
10-Sep-04 Prototype Specifications
(Draft) Complete
19-Nov-04 Lab Prototype Built
25-Nov-04 Lab Prototype Testing
Complete
2-Dec-04
Product Specification (final)
Complete
10-Dec-04 SBIR Phase 2 Application
Submitted
April 14, 2004
32
Deliverables - Phase 1
8-Oct-04
29-Oct-04
Complete
1-Nov-04
Complete
28-Oct-04
18-Nov-04
April 14, 2004
Parts Acquired
Computer Interface
Dead Reckoning Module
802.15.4 Module Complete
Software Interface Complete
33
Major Milestones – Phase 2
25-Feb-05 SBA Loan Obtained
9-May-05 Database Development Complete
11-Aug-05 Web Interface Development Complete
28-Sep-05 Integration Testing Complete
25-Feb-05 Documentation Complete
26-Apr-05 Design Finalized
3-Jan-06 FCC Approval Received
10-Jan-06 STATags ready for Real World Testing
2-May-06 STATags Ready for Sale
April 14, 2004
34
Major Milestones – Phase 3
8-Aug-06
11-Jul-06
Established
8-Aug-06
Trained
15-Aug-06
April 14, 2004
Full Production
Support Department
Installation Engineers
Break Even Point
35
Project Budget
Phase 1
Phase 2
Phase 3
Total
April 14, 2004
$96,600
$836,000
$3,431,600
$4,364,200
36
Budget by Year
2004 –
$206,976 Phases 0 & 1
Complete
2005 – $505,512 Production Sample
Complete, FCC Testing
Complete
2006 – $1,599,104 Phase 2 Complete,
Full Production, Installed in
43 hospitals
2007 – $2,052,600 Installed in 271 hospitals
Total $4,364,192
April 14, 2004
37
Resources - Phase 1
Office Space 2600 Sq. Feet
Utilities
Telephone/Internet
Office Furniture
Electrical Eng. Equipment
Office Computers
Peachtree 2004
Network / Server
MS Visio / MS Project
Web Site Hosting
Prototype Parts
Total
April 14, 2004
$7,200
$2,000
$1,600
$6,000
$2,500
$8,000
$1,000
$3,500
$3,000
$200
$1,000
$36,000
38
Personnel - Phase 1
Francis Deligosa - Manufacturing Director
Daniel Tubbs - Team Manager / Computer Engineer
Joseph Williams - Personnel Manager
Latricia Simon - R & D Manager / QA Manager
Brian Easton - Finance Officer
Jason Sadler - Marketing Director
Drafter (plastic parts)
Computer Engineer
Total
April 14, 2004
$9,000
$9,000
$9,000
$9,000
$9,000
$9,000
$600
$6,000
$60,600
39
Resources - Phase 2
Office Space 2600 Sq. Feet
Utilities
Office Furniture
Network / Server
Web Site Hosting
Trade Show Booth Rental
Airfare to Tradeshow
Entertainment
Test DB Server
Plastic Tooling
Test Run
FCC Approval Testing
Total
April 14, 2004
$30,600
$8,500
$6,000
$6,000
$850
$30,000
$4,000
$1,000
$2,500
$40,000
$5,000
$20,000
Car Rental
Telephone/Internet
Office Computers
Development Software
Graphics Designer
Trade Magazine Ad
Hotel
Test WWW Server
Test Workstations
Production Engineering
Error Reporting Software
$400
$6,800
$12,000
$8,000
$1,600
$55,000
$1,000
$2,500
$3,000
$15,000
$5,000
$264,750
40
Personnel - Phase 2
Daniel Tubbs - Team Manager
Joseph Williams - Personnel manager
Brian Easton - Finance Manager
Latricia Simon - R&D Manager / QA Manager
Jason Sadler - Marketing Director
Francis Deligosa - Manufacturing Director
Office Manager
Lawyer
Software Engineer 2
Technical Writer
Installation Engineer
Network Engineer
Total
April 14, 2004
$68,000
$59,500
$59,500
$59,500
$59,500
$59,500
$42,500
$54,000
$76,500
$8,750
$12,000
$12,000
$571,250
41
Resources - Phase 3
Office Space 6000 Sq. Feet
Utilities
Telephone/Internet
Office Furniture
Office Computers
Network / Server
Development Software
Web Site Hosting
Trade Show Booth Rental
Trade Magazine Ad
Airfare to Tradeshow
Car Rental
Hotel
Entertainment
Ticket Tracking Software
Retool Plastic Mold
Total
April 14, 2004
$80,000
$20,000
$12,000
$10,000
$20,000
$10,000
$10,000
$1,000
$120,000
$44,000
$32,000
$1,600
$8,000
$8,000
$5,000
$320,000
$701,600
42
Personnel - Phase 3
Daniel Tubbs - Team Manager
Joseph Williams - Personnel manager
Latricia Simon - R&D Manager / QA Manager
Brian Easton - Finance Manager
Jason Sadler - Marketing Director
Francis Delegosa - Manufacturing Director
Office Manager
Accounts Manager
Accounts Receivable
Lead Installation Engineer
Installation Engineers (6)
Help Desk Coordinator
Tech Support (3)
Sales Manager
Salesmen (6)
Software Engineers 1 (3)
Inventory Manager
Total
April 14, 2004
$100,000
$80,000
$80,000
$80,000
$80,000
$80,000
$70,000
$80,000
$70,000
$100,000
$540,000
$60,000
$150,000
$140,000
$720,000
$240,000
$60,000
$2,730,000
43
References & Calculations
1 $462,221,560,0002 x 57%3 (all wages &
Benefits) x 63%3 (nurses wages & benefits)
2 Hospital Statistics, 2004 edition, American
Hospital Association, as reported by the
American Hospital Association website
(Appendix B)
3 Cost of Caring: Key Drivers of Growth in
Spending on Hospital Care,
PriceWaterhouseCoopers, February 19, 2003
(Appendix C)
4 975,9622 Beds x 10 Mobile Medical Devices per
bed = 9.76 Million Mobile Medical Devices
April 14, 2004
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References & Calculations
5 Cindy Jimmerson, April 7, 2004
6 $166 Billion (Nurse’s Salary and Benefits)1
x 35% = $58 Billion
$166 Billion (Nurse’s Salary and Benefits)1
x 60% = $99 Billion
7 Murphy, Mark: Eliminating Wasteful Work
in Hospitals Improves Margin, Quality, and
Culture (Appendix D)
April 14, 2004
45
Questions?
April 14, 2004
46