Have you ever driven in the dark without headlights? Anyone who has probably wouldn’t recommend it. You can’t see things that would be obvious risks in the light of day like a pothole, a detour, or other obstacles that a GPS can’t possibly detect. In capital equipment negotiations, looking at a quote without line-item detail (price, discounts, rates and hours, etc.) is like driving a car without headlights – you can’t possibly see the risks (or savings!) that could be right in front of you. Despite that clear hazard, hospital supply chain teams are still often expected to drive in the dark amidst the fog of a massive information imbalance that often favors suppliers. Without that illumination, knowing if something is a good deal (or even a “good enough” deal) can be almost impossible. But fortunately, you have the power to turn on the lights.
Insist on the details with capital equipment purchase quotes. This is the only way to establish a level playing field and know you are getting a good deal. Expect that often the initial response may be “no,” but don’t concede. And if you can’t get the details, it’s reasonable to conclude something is missing or being hidden. Drivers are entitled to the safety provided by headlights on any car they drive, and you’re entitled to the information you need to be able to evaluate a quote clearly and make an informed decision. Work with your team to institute a hospital policy of line-item pricing, if necessary. You should never be forced to negotiate in the dark.
Recently, a community hospital that just learned the $250,000 implementation fee for a standard clinical software upgrade was inflated by six figures, but they couldn’t see why. Demanding line-item pricing illuminated the source of the cost increase for them, and they were able to negotiate a reduction to save more than $100,000 in the process. Keep the headlights on and get the detail you need!