Surgical sponges and instrument detection during a surgical procedure

System and method of managing one or more surgical articles, wherein the surgical article can include a surgical sponge comprising an identification element, and wherein managing can include counting, locating, or both. The identification element can be a RFID tag. The RFID tag stores unique identification information relative to the surgical sponge. The system and method for detecting RFID tags may include a hand-held RFID reader operable in a first count-in mode and in a second count-out mode; the hand-held RFID reader may be receivable in a cradle that can determine the presence of the hand-held RFID reader in the cradle; and where operation of the hand-held RFID reader in the second count-out mode is enabled when the hand-held RFID reader is present in the cradle and the second count-out mode is disabled when the hand-held RFID reader is absent from the cradle.