Would it surprise you to learn that hospitals lose money on service contracts? Despite hospitals’ best efforts to track service utilization, many benefits often go unused for a number of reasons, which can be especially frustrating if you worked hard to save on service costs by spending more on coverage. During the COVID-19 pandemic, for example, many hospitals were forced to restrict access to facilities for non-essential personnel – so service workers weren’t able to access equipment, even for regular service that was covered in the contract. And while that’s maybe an extreme example, it illustrates how easily service contracts can fade into the background amid unexpected challenges. It’s easy to know if service for non-functional equipment has been completed, but what about all the preventative maintenance visits, software upgrades, workstation replacements, trainings, and more that are often included in service agreements? Here’s how you can avoid losing money by paying for service you don’t use.
Review service contracts to make sure you’re using the services/benefits you are entitled to before contracts expire. Establish a regular time to review contracts (quarterly, semi-annually, etc.) so you know what services still need to be scheduled before contracts expire. If there is not enough time to get service completed, consider asking suppliers to extend the expiration date – particularly for preventative maintenance or costly upgrades – so you get the benefit without having to pay twice. Most suppliers can find ways to accommodate reasonable requests, and you don’t need to feel uncomfortable asking for their help.
As another challenging year for hospitals comes to a close, consider how the right information (in this case, when service contracts expire and what is still due to you) can help you get the most value and avoid losing money on equipment service contracts. This will help keep your budget in check and make sure your equipment stays ready for patient care when needed.