Strong business case for RFID in healthcare

MUMBAI: The RFID market is still at a nascent stage within the healthcare vertical. The business case for the healthcare market, however, has immediate perceivable benefits as compared to other verticals that are still struggling to define the potential returns of adoption.

The potential returns and benefits of RFID adoption go beyond just efficient supply chains and economic value to critical issues such as patient safety and process efficiency.

RFID would help improve the process of developing drugs and running clinical trials of drugs, increasing patient safety, managing critical care assets and hospital equipment and cutting down on counterfeiting and diversion of pharmaceutical products.

A new analysis from growth consulting firm Frost & Sullivan 'World RFID in Healthcare and Pharmaceutical Applications Markets' reveals that RFID in healthcare and pharmaceutical applications markets earned revenue of $370 million in 2004 and was estimated to touch $2,318.8 million in 2011.

"The late adoption of barcode technology by the market has meant that the technology is still popular among pharmaceutical and other healthcare applications," says Frost & Sullivan research analyst Priyanka Gouthaman.

"The current price of RFID technology would also suggest that a complete replacement of bar codes is unlikely and co-existence of both technologies is expected for the next 10 years," she adds.

"The hype surrounding RFID technology in the recent past has contributed to unrealistic expectations among consumers," says Priyanka. "The internal assessment of business processes involved is often overlooked by most vendors and system integrators."