Medical, Lab & IT Equipment Benchmarking & Analytics

Medical, Lab & IT Equipment Benchmarking & Analytics

May 02, 2016

Industry Tips

Creating Competition to Save Money

After briefly introducing some saving practices in our last post, we here at Miga wanted to dive deeper into how hospitals follow these tips to drive savings results.

All too often, hospitals miss out on savings because in the rush to get new equipment approved and bought, they inadvertently fail to thoroughly leverage all the competitive supplier offerings that exist in the marketplace. And as Miga has learned during our over ten years of helping leading hospitals save millions annually on capital equipment and service contract purchases, a missed opportunity to create competition means you’re paying 12-16% more than what your competitors are.

Here are three great ways to create competition when negotiating capital equipment purchases:

  1. Get proposals from at least two viable Suppliers- Even if your hospital is committed to a certain Supplier’s product, it still makes sense to get a quote from a Supplier with a competitive product. This way, you can use the competitive quote as leverage when asking for a lower price.
  2. Don’t commit to a specific Supplier until you validate you have the best possible price and terms – It is important to leave your Supplier in doubt until you finally get the price and terms you desire. Prematurely committing to a Supplier removes any competitive pressure, which ultimately takes away any negotiating power that might have existed earlier in the process.
  1. Leverage pricing of pre-owned options in negotiations with new equipment Supplier – Instead of creating competition with other new equipment Suppliers, you can create competition by researching how much pre-owned equipment of the same model costs. The new equipment Supplier, in fear of losing the business, will typically drop the price or find a demo unit that you can purchase for a lot less!

Let us know how your hospital creates competition in its negotiations!  It would be great to hear from you.

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."