Historically, studies and researches have indicated that the healthcare industry is faced with numerous challenges that result in monetary losses. Some examples of such data are as follows:
- The World Health Organization (WHO) estimates that counterfeit drugs constitute 10.0 per cent of the global drug market, and their use causes at least 700,000 deaths each year.
- A recent study by Boston University has estimated that up to 50.0 per cent of healthcare expenditure is lost due to wastage, excessive pricing, and fraud.
- In 2006, owners of a pharmaceutical wholesale distribution company were convicted of an illegal medical products diversion scheme, which defrauded the Medicaid and Medicare programs of more than $45.0 million, according to the Food and Drug Administration (FDA).
- In 2006, a study by the Institute of Medicine found that at least 1.5 million preventable drug-related errors occur each year - 400,000 in hospitals, 800,000 in long-term care settings, and approximately 530,000 among Medicare recipients in outpatient clinics.
The healthcare industry decided to embrace technology in the form of radio frequency identification (RFID) to address such challenges. The application of RFID has progressed from pilot stage to large-scale deployments. Moreover, it is expected that there will be significant increase in the use of RFID technology in the coming years. Challenges to Adoption:
However, the adoption of this technology faces certain major challenges, such as slower return on investment (ROI), lack of availability of skilled system integrators (SI), and lack of end-user awareness.