Fear of Commitment May Be Costing your Hospital Money

Too often, when negotiating equipment purchases or service contracts, hospitals miss the opportunity to gain final price concessions or other incentives because they may not fully appreciate the power of “making a commitment”. In this case, by commitment we mean issuing a P.O., which can be used as leverage for gaining final savings and other favorable terms. With the promise of a binding P.O., the vendor will be much more likely to provide their best possible offer if they know it will result in a commitment to move forward with the purchase. Don’t be afraid to use commitment in the form of a purchase order to maximize the savings for your hospital.