Medical, Lab & IT Equipment Benchmarking & Analytics

Medical, Lab & IT Equipment Benchmarking & Analytics

May 03, 2017

Blog

Community Hospital Reduces X-Ray Repair Costs by 87% and Prevents Downtime

As hospitals increasingly focus on driving structural cost reduction, areas of cost such as servicing and maintaining complex clinical equipment and technology are under increased scrutiny. While efforts to capture savings on equipment purchases have been in vogue for years, many hospitals are also realizing that service – which can account for double or more of the annual cost of purchasing equipment – represents double or more the potential savings opportunity, and is finally starting to get the attention it deserves. For one 200-bed community hospital in the central U.S., scrutiny of and attention to the ever rising costs of medical equipment repair and maintenance saved them 87% – or $34,000 – on a single repair in a clinic x-ray room. Here’s how:

When a part failed on a high volume x-ray room at one of the hospital’s adjacent family medicine clinics, the x-ray room could no longer be used and patients had to be rescheduled or directed to another location. The clinic manager contacted the manufacturer’s service representative who indicated the required part would need to be special ordered, would cost nearly $40,000 and could not be available for more than three weeks. Not only was this a significant unplanned cost, but the unplanned downtime in an extremely busy clinic disrupted patient care and created the potential for lost revenue.

Due to the urgent nature of the need, the clinic manager got the proposed $40,000 cost approved by the hospital CFO on an emergency basis. Despite having approval to move forward with the repair, the clinic manager took the initiative to see if there were any alternative sources of the replacement part. This simple but important step paid big dividends for this hospital.

Using Miga’s EVMS platform, the clinic manager located, purchased and had the needed replacement part installed within just four days, saving more than two weeks of unplanned downtime. And, the clinic saved $34,000 (87%) by using the right information to find the solution they needed at the right price.

How would your hospital react if you saved 87% of an approved cost simply by taking the time to verify what alternatives may exist? This story illustrates what we see in our work with hospitals every day: sometimes the biggest savings can come from seemingly small actions with outsized benefits. We encourage you to continue to share your experiences and be part of the dialogue about advancing common sense savings and efficiencies in healthcare.

For more details about how EVMS can help your hospital uncover incremental savings on new equipment purchases and service contracts, contact us today.

Know the right price.

And get it.

Having the right information saves hospitals time and money on medical equipment lifecycle costs.

Scott Bosch

Manager of Clinical Engineering

Park Nicollet Health Services

“The groups responsible for managing technology in our healthcare organization need data and analysis to manage costs and make informed decisions. Miga’s EVMS platform is an important and valuable resource that helps us make the right decisions for both our clinical priorities and budget.”

Matt Werder

Chief Technology Officer

Hennepin County Medical Center

“Miga’s data is key to helping us be good financial stewards and validates we are using our resources wisely. The market intelligence provided by Miga’s EVMS platform has allowed us to save substantial amounts of money.”

"Miga’s ability to match equipment donated by their customers with the needs of our medical projects has been a most valuable and welcomed resource."

Jim Tierney

CEO

Suburban Radiology

“Miga’s data, analysis and expertise – in particular related to the fair market value of clinical equipment – is a critical resource we need to support strategic acquisitions, divestitures and joint ventures.”

Eric Hoag

Director, Corporate Strategy & Development

Allina Hospitals and Clinics

“Miga’s proprietary data and expertise was critical to our ability to close an acquisition deal quickly and with a high level of confidence in our valuation.”

Bill Barta

Corporate Director, System Imaging

Fairview Health Systems

“Miga’s objective information-based approach and understanding of the needs of hospitals makes them a valuable resource and helps us make the most cost effective spending decisions.”

Matt Blashill

Enterprise Director of Supply Chain

Lake Region Healthcare

"There’s a personal touch that sets Miga apart from their competitors. They don’t just offer great insights. They always take the time to provide additional analysis that is meaningful and actionable."

Dan Bazinet

Director of Clinical Engineering

Southcoast Health

“In all my years in health care, I’ve used a lot of benchmarking tools. Most simply repeat information passed along from others; Miga’s information tells me what’s really happening.”

COO

Community Hospital

"Miga's negotiating skills save us time and money. And their unique understanding of the market means we’re always playing from a position of strength."

Supply Chain Director

Regional Healthcare System

“All suppliers claim to have excellent customer service. Miga actually walks the talk and always has our best interest at heart. We love working with them."