A system for tracking an activity in a healthcare environment includes a master station having a processor, a memory, and a transceiver, badges coupled to objects, each transmitting a unique badge ID, and sensors disposed throughout the environment, each including a transceiver for receiving badge IDs and transmitting to the master station transceiver the badge IDs and a unique sensor ID that relates the sensor to a location. The master station processor determines object locations from the badge and sensor IDs by identifying the badge associated with the object, relating the sensor ID to the sensor location, and storing object location information in memory. Each badge also includes a displacement sensor that generates signals indicating object movement and direction for transmission to the sensor transceivers which forward displacement information to the master station. The master station processor uses the information to update the stored object location information.