REDUCE EQUIPMENT ACQUISITION COST: SAVED $236,000 (17%)
AVOID UNPLANNED FLEET REPLACEMENT: AVOIDED SPENDING $160,000 (100%)
PROBLEM: Our Client was purchasing a new MRI and wanted to verify if the quoted price for the new system and the trade‐in offer for their existing MRI were the best possible prices. SOLUTION: Using EVMS' Purchase Quote Review, our Client established that the quoted price for the new MRI was at least 10% higher than what other hospitals were paying and that the trade-in offer for the existing system was significantly below its true market value. OUTCOME: Armed with EVMS’ market data, our Client negotiated an additional $126,000 discount (11%) on the price of the new MRI and sold the existing MRI for $110,000 more (73%) than the trade-in offer. The combined $236,000 in savings represented a 17% reduction in the acquisition cost of the new MRI.
MAXIMIZE TRADE-IN VALUE: RECOVERED $231,000 (25%) MORE
PROBLEM: Our Client needed to replace two patient stretchers of a discontinued model that was no longer available new. They wanted to maintain one standard model for their fleet of stretchers, but replacing all of them was not budgeted and not an option. SOLUTION: Using EVMS' Equipment Locator, our Client was able to find two refurbished units of the discontinued model that were available at less than half the cost of comparable new stretchers. OUTCOME: Our Client found the equipment needed to maintain a standardized fleet, saved $20,000 (60%) vs. the price of comparable new stretchers and avoided an unplanned cost of $160,000 to replace the entire fleet.
ESTABLISH SERVICE ALTERNATIVES FOR A LOWER COST: SAVED $1,100,000 (18%)
PROBLEM: Our Client was upgrading a fleet of 90+ pieces of endoscopy equipment and wanted to verify if the trade-in offer for their existing equipment was consistent with market prices. SOLUTION: Using EVMS' Trade-In Optimizer, our Client established the true market value of their existing equipment was at least 20% higher than the OEM trade-in offer. OUTCOME: Armed with EVMS’ market data, our Client removed the trade-in from the new equipment purchase and sold the existing fleet through the Miga Marketplace for $231,000 more cash (25%) than the OEM trade-in offer.
REDUCE ANNUAL SERVICE COSTS: TOTAL SAVINGS OF $520,000 (36%)
PROBLEM: Our Client was entering into a 5 year multi-vendor service agreement covering more than 51 imaging systems. They wanted to verify if the proposed levels of coverage were needed and if the proposed $1,200,000 annual price was consistent with market rates. SOLUTION: Using EVMS' Service Contract Review, our Client learned they could save between 11% and 29% annually for comparable levels of coverage and terms depending on the service provider(s) they selected. OUTCOME: Our Client used EVMS’ market data to renegotiate and restructure the terms of the service agreement. They saved $220,000 annually (18%) for total savings of $1,100,000 over the 5 year contract.
PREVENT UNNECESSARY EQUIPMENT PURCHASES: SAVED $190,000 (97%)
PROBLEM: Our Client needed to verify if the OEM quoted price for annual service on their linear accelerator was consistent with market rates other hospitals were paying for the same level of service coverage. SOLUTION: Using EVMS' Service Contract Review to benchmark the proposed annual service cost against market rates, our Client learned other hospitals were paying at least 20% less for comparable service. OUTCOME: Armed with EVMS’ market data, our Client was able to negotiate a lower price of $104,000 annually (36%), for total savings of $520,000 over the 5 year contract period.
MINIMIZE DOWNTIME, AVOID LOST REVENUE: SAVED $34,000 (87%)
PROBLEM: Our Client’s Cardiology Department was told by the OEM they needed to purchase new ultrasound systems to enable their physicians to read images remotely via the internet. The upgrade to a new model was going to require nearly $200,000 in unplanned cost. SOLUTION: Using EVMS' Service Second Opinion, our Client learned that there was a commercial software patch available that could provide the exact functionality required by the physicians on their existing ultrasound systems at a fraction of the cost. OUTCOME: Our Client purchased the software patch for $5,000 and saved more than $190,000 (97%) by avoiding the purchase of new hardware that had been recommended by the OEM.
GET MAXIMUM VALUE FOR OLD EQUIPMENT: REALIZED $43,000 OF NET CASH PROCEEDS
PROBLEM: Our Client faced a part failure on a high-volume x-ray room. They were quoted a price of $39,000 by the OEM for the replacement part and labor and an estimated 5 weeks of system downtime until the repair could be completed. SOLUTION: Using EVMS' Independent Service Locator, our Client found that there were independent service providers that could provide the needed part and complete the repair in only 2 weeks and for a fraction of the cost proposed by the OEM. OUTCOME: Our Client purchased the part and scheduled the repair with a service provider through the Miga Marketplace for $5,000 and saved $34,000; 87% lower than the OEM quoted price. They also avoided 3 weeks of unplanned downtime and an estimated $30,000 in lost patient revenues.
PROBLEM: Our Client was replacing four lab analyzers with a new make and model. They were told by the OEM that their existing systems had no value and they would charge the hospital a fee for to de-installation and removal. SOLUTION: Using EVMS' Estimate of Resale Value to benchmark current market values, our Client established the analyzers did in fact have an estimated resale value of $10,000 each. OUTCOME: Instead of paying out of pocket to have the analyzers removed, our Client sold the systems to a buyer through the Miga Marketplace and realized $43,000 of net cash proceeds.