Learn how one hospital protected $213k in savings with a strategic deadline extension
Purchase quotes often contain supplier-imposed price expiration dates that, if missed, pose the threat of potential price increases that could unexpectedly blow your budget. These deadlines can be particularly difficult at the end of the year, when suppliers’ eagerness to close business before the end of the year collides with the many holiday out-of-office notices you may receive when requesting final stakeholder sign-offs. And while deals can often slip by a few days in other months of the year with relatively little consequence, a December 31st deadline can be harder to overcome. So with the clock ticking and budget on the line, how can you deal with these end-of-year realities without losing the savings you’ve worked hard to secure?
Insist on an extended deadline (in writing!) to protect your savings. Yes, it often is really that simple. Quote expiration dates can be more flexible than reps want you to believe—so long as there’s a high likelihood that you’ll be able to complete it with a little more time. If a rep has to choose between a deal in January and no deal at all, they’re more likely to fight for you to keep the deal (and your savings) alive. Of course, there are often other considerations that may weigh on the purchasing process. But without an extended deadline, losing out on savings is almost guaranteed.
Last year, a Miga hospital client was running out of time to complete a purchase of new imaging systems (CT, cath lab, two R/F rooms) before the negotiated pricing expired on December 31st. The supplier had threatened that missing the year-end deadline would result in losing the $213k incremental savings that the hospital had previously negotiated. By assuring the rep that the deal was just a few stakeholder sign-offs away from complete, the supplier extended the price expiration date by 15 days—providing enough time for the hospital to complete the deal with their hard-earned savings intact.