Service Contract Management

Transcription

1 Service Contract Management Jillyan Morano, MHA Director of Clinical Engineering, ABM Healthcare Support Services Mariana Hu, MS Clinical Systems Engineer, ABM Healthcare Support Services November 5, 2014

2 Background TiM, Linc Health, ABM Health 40 Years in business Number of CE clients: 392 Hospitals: 75 On site Hospitals: 31 Field Services: 317 Geographic Strengths New England (MA, CT, RI, NH, ME) Florida (Ft Lauderdale, Jacksonville) Washington (Seattle), Oregon California Texas (Dallas) Contract types Gold Pac (Full Service/Fixed Price) Resident (Labor Only) PM+ (Compliance) 2

3 Service Contract Management Expert Clinical Engineering Management Administrative Sponsorship Clinical Engineering Processes, Policies, Procedures and Management Systems Service Contracts Vendor Time & Materials Vendor Time & Materials Service Contracts In-House CE Resources In-House CES Resources Enterprise Documentation System Mobile Tools Education Professional Advancement Opportunities Great medical technology support contributes to Great Healthcare Good medical technology support contributes to Good Healthcare 3

4 Options, Options, Options Should a medical device be covered in-house, on a service contract, or under time and materials? Service contracts are an expensive option, but is it worth is? T&M might save an organization money, but is it too risky? How about using insurance instead? What other options are out there? What is the best service option for a specific technology?

5 Start Early Maintain an accurate database of vendor service contracts Start 90 to 120 days prior to the contract expiration date Read fine print Gather information necessary to carry out an analysis Get the equipment stakeholders input Produce a recommendation Answer stakeholders questions

6 Percentage of total service cost Service value Analyze the Equipment Analyze Service History Review value of service contract vs. actual service cost Itemize service cost into labor, parts, travel, and software/hardware upgrades Assess the impact of unscheduled service events regarding patient safety, equipment availability, and financial implications 100% 30% Review the costs throughout 20% 10% the lifetime of the equipment 0% S E R V I C E VA LU E V S S E R V I C E C O N T R AC T C O S T $136,930 90% 80% 70% 60% 50% 40% $37,626 $69,836 $27,949 $31,839 D I S T R I B U T I O N O F S E R V I C E C O S T S Year $186, Year Service value Service contract cost PM cost CM parts cost CM travel cost CM labor cost

7 Analyze the Equipment Get Stakeholders Input Critical aspect is the equipment stakeholders involvement Stakeholders may have a log of equipment failures that were not reported to Clinical Engineering or the service vendor The stakeholder will also be able to speak to the obsolescence of technology or whether the equipment may need to be replaced soon May have knowledge of new technology that betters suits clinical needs Assist in determining the levels of criticality and utilization Effect on patient care 24/7, 7a-7p, weekends, etc

8 Analyze the Equipment Identify Critical Components Major parts of equipment with high dollar value Failures cause significant operational and financial impact on the organization Utilization of equipment Based on industry norms Cost of Critical component Typical Failure Rate Utilization Value of Predicted Failures

9 Analyze the Equipment Assessment of Future Needs Projecting the future needs will assist in determining what service option will be most cost efficient to the organization Investigate availability of parts and/or service Identify anticipated software and hardware upgrades 9

10 Analyze the Service Options Identify Service Options Consider number of similar devices In-house expertise Existing Training Staffing Levels Third Party Service Vendor Local representation and reliability of the service engineers Insurance OEM Often the most costly option

11 Analyze the Service Options Project Cost Refer to equipment service history for predicting equipment performance and therefore service cost If lack of service history, use the service history of another device of the same type that is installed in your facility This helps predict the behavior for the device in question Consider the cost of the anticipated failure of critical components Acknowledge the cost of anticipated software and hardware upgrades Review the stakeholders input regarding additional anticipated cost Obtain service contracts quotes and labor and travel rates from vendors Attain pricing for equipment parts that may need to be replaced

12 Projected service cost Compare Service Options Perform a comparative analysis among the selected alternative service options Include elements such as: service contract price, parts coverage, hardware and software upgrades coverage, training cost, service equipment cost, projected service costs, and fees, labor and travel rates associated with T&M support Include pros and cons of each service model and present to the stakeholder $90,000 $85,000 $80,000 $75,000 $70,000 $65,000 $60,000 $55,000 $50,000 OEM Full service with tube coverage OEM Full service without tube coverage OEM T&M S E R V I C E C O S T P R O J E C T I O N S 3rd Party Full service with tube coverage, 5 year contract 3rd Party service without tube coverage, 5 year contract 3rd Party service with tube coverage, 3 year contract 3rd Party service without tube coverage, 3 year contract ABM Health T&M with tube coverage ABM Health T&M without tube coverage Service support option

13 Make a Recommendation The clinical engineering team should to discuss what is the optimal service solution Unified recommendation to present to the stakeholders Recommendation should align with stakeholders due to established open communication The recommendation is delivered to Senior Leadership for final acceptance

14 Implement Service Model & Monitor Performance Perform continuous monitoring Quality Work with stakeholders and materials management to periodically review list of service agreements and any necessary additions, removal, or changes in the service support Stakeholder Satisfaction Adherence to SLA Effectiveness Cost

15 Conclusion Service contracts management is a complex process involving members beyond clinical engineering, and their involvement is essential in the process Good data is also key; therefore, it is critical that all sources of information are consulted for an accurate analysis When carried out effectively, this process achieves significant savings for the organization while maintaining a satisfactory level of service support

16 Examples of Documentation Process Work Flow Vendor Request Form Analysis template 16

17 QUESTIONS & ANSWERS Thank You for Your Time Questions? 17