How One Hospital Negotiated $8 million in Savings
Our last two tips showcased the power of building consensus and using consensus to save the most money when buying medical equipment. Starting with using internal survey data to build consensus among stakeholders, to using this consensus to build a hard-hitting RFP that gets the information stakeholders really want.
The final step in the process is to negotiate the lowest price and best contract terms. See how hospital used consensus and a hard-hitting RFP to negotiate a 21% lower cost and $8 million windfall when replacing 19 CT scanners.
Leverage Consensus for a Winning Negotiation
Stakeholder consensus and the results from a hard-hitting RFP in hand, give you more negotiating leverage—but only if you use it. This means using the magnitude of the opportunity (19 CT scanners and service contracts worth a combined $38 million) to increase competitive pressure on suppliers who already knew it was an “all or nothing” deal (because the RFP made it clear). With more consequence, each supplier worked harder to offer the best possible deal in order to win the business.
This Miga hospital client leveraged their newfound power when negotiating the final price and terms for the new CT scanners (and service contracts). The three competing suppliers had each expected to get a piece of the deal but suddenly found themselves competing for more upside, but also much more downside. Beyond just price, the RFP made it clear that other value (service, training, consolidated billing, etc.) were equally important.
The results exceeded all hospital expectations with proposals from all three suppliers far better than they had ever offered. The winning proposal came in at just under $30 million, leaving an $8 million windfall the hospital could use to fund other needs.
The Secret to the $8 Million Win
Unified stakeholders that never wavered in their commitment to picking one, not three, CT suppliers was the secret to the win. And it all started with a simple survey.
Miga Solutions provides the most accurate and actionable pricing information, enabling hospitals to lower their medical equipment total cost of ownership (TCO) by 12-16%. Contact us to learn more about how your hospital can save.