How Much Does “Free” Really Cost?

You’ve probably received an equipment purchase quote with one or more “free” line items. In reality, it’s not likely these are really free. The costs are likely buried elsewhere in the quote.

Free is Rarely Ever Free

Make sure you are not overpaying on some line items of your quote under the premise of certain items being free. Analyzing the cost of each line item in a quote is an important step to ensure you’re getting the best deal. Refuse to blindly accept something that is included at no charge.

For example, just recently a hospital purchasing a new CT scanner also needed software upgrades on two existing scanners. As an incentive to complete the purchase, the supplier offered to include the upgrades at no cost.

The actual cost of the upgrades was $131,000 — and it turned out the hospital was NOT getting them for free. In fact, the supplier had allocated the full cost of the upgrades into other line items in the overall proposal for the new equipment.

Once the hospital understood the true cost and value of the upgrades, they were able to weigh the cost/benefit and make an informed decision.

Find the True Value of Free Line Items

Two things helped the hospital understand what “free” really cost:

1 — The hospital knew that free rarely means free, and didn’t blindly accept the “free” upgrades without taking steps to validate the proposed costs.

2 — The hospital had access to the right information to know with confidence the true value of the upgrades and new equipment. This allowed them to proceed knowing they were getting the best price.

Know the Right Price

You probably think you’re getting a good price. You certainly hope you are. But do you KNOW? Having access to the right information is the best way to know the right price and get the right price so you can maximize savings.

Want to know more? Contact the Miga Client Experience Team at client@migasolutions.com or (763) 225-8410.

Know the right price.

And get it.

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

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.”

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."

Dr. John Wilson

Physician

Mayo Clinic, Department of Medicine

Program in Underserved Global Health

"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.”

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.”

Miga Solutions is an information services company, helping leading hospitals reduce medical equipment and IT costs since 2004. Our EVMS Benchmarking 2.0® platform enables hospitals to benchmark using better data, find more savings, and make better spending decisions across the medical equipment lifecycle. Coupled with unparalleled marketplace expertise, our solutions bring our clients to the lowest possible total cost of ownership.

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