Blog

Six tips for procuring the best medical equipment agreement

Engaging the right team in the decision-making process is key

By Sheila O’Donnell / Special to Healthcare Facilities Today


I’ve really done really some cool things in my career in Healthcare Technology Solutions HTS). Two of the most rewarding experiences involved leading replacement hospital project teams – one at the University of Virginia Medical Center and the other at Sentara’s Martha Jefferson Hospital, both in Charlottesville, Virginia.

On both projects, I led the medical capital equipment procurement process. It was an incredible experience to be part of two construction projects that delivered the community their future healthcare homes. You can see the results of your work, from the steel coming out of the ground to the “topping off” ceremony where the final beam is laid. The importance of our work also struck a personal note since I knew that my family, friends and even I would go there for healthcare in the future.

I’ve also led the procurement process for almost every hospital department. These include imaging, laboratory, operating rooms, respiratory therapy, medical-surgical and physical/occupational therapy. Over the years, I’ve negotiated everything from linear accelerators used for radiation treatment to hospital beds to highly competitive local blood bank services.

I even negotiated a contract for fixed wing aircraft and helicopter emergency transportation services for the University of Virginia’s Pegasus Hospital’s air and ground transportation services.  As part of the evaluation of vendors, the procurement committee also needed to evaluate the best aircraft for the job. Who knew that riding in a Bell 412 and Dauphin helicopters would be part of my procurement responsibilities?  

Through all of these experiences, I’ve learned how to make the best decisions for our HTS team. To help others looking to be successful in their procurement negotiations, here are six recommendations:

Engage the right team in the decision-making process. Many people have a stake in the purchase of medical equipment, ranging from clinicians, department heads, administration, clinical engineering, end users and finance. So be certain to include the right team early in the process. When that decision is made and the equipment is finally in use, we want to make sure the medical professional using the equipment had a voice in the decision. Ultimately, we want them to feel good about the decision so they can focus on providing the best possible patient care.

Be the leader.  Manage the procurement process by gathering and presenting data to administrators and stakeholders, yet also setting aside time to discuss the data’s impact. This approach facilitates thoughtful discussions and solid decisions while taking any emotional connection out of the process.

Years ago I was involved in the procurement of a new transesophageal echocardiograph (TEE) piece of equipment. At the first committee meeting, the hospital’s anesthesiologist dropped her papers on the table, looked at me and said, “I don’t have time for this!”  Over time, I led the committee through the process and gained her confidence to the point the anesthesiologist became a huge advocate.  A few years later, when the anesthesiologist was Chair of Anesthesia at a major academic medical center, she called me to discuss the details of that deal.  To me, that call meant we reached the right result.  

Listen carefully. Care givers often have a vendor preference. But if you listen carefully, you can learn what is driving their preference and any objections to other suppliers. Once you know their concerns, there is an opportunity to overcome objections.  

I recall one project where I met one-on-one with every physician that had submitted a sole source request for capital equipment. By preparing for each visit and listening carefully, I found that most physicians were open to considering other options and welcomed a more competitive approach. I remember my boss was astounded at the results of these discussions.  

Get to know the vendors and their product offerings. Most procurement professionals are adept at learning about product features and functionality while also balancing what terms and conditions would be smart for the pending agreement.   

I’ve worked on several procurement projects for hospital beds. In each case, the manufacturers Hill-Rom and Stryker go head-to-head and most hospitals want to choose one of them - though not all succeed. A procurement professional needs to understand the different levels of bed offerings from both manufacturers. This includes strengths, weaknesses, functionality, fall prevention capability, warranty, serviceability, training offerings, repair part pricing structure, IT compatibility and more.  The procurement committee is depending on an adept procurement professional to help navigate this important patient care and investment decision.

Ask great questions. Asked “What makes a great leader?,” I heard former General Electric Chief Executive Officer Jack Welch once reply that “the best leaders ask great questions.”  For some reason Welch’s response stuck with me. The next time you are with someone you think is a tremendous leader, watch how they listen and ask great questions.  

Negotiate to get the best results for your team. It has been exciting to see the growing number of resources for procurement professionals. For medical capital equipment pros, MD Buyline and ECRI offer a wide array of information. Today, price benchmarking, quote analysis and technology assessment are readily available to equip the savvy negotiator. Often, features such as extended warranties, training, CEU’s and software, and product upgrades and trade-ins are negotiable.  Get the best price – but deliver high total value to your team based on their objectives.   

Sheila O’Donnell is a Vice President in the Technical Resource Group for Crothall Healthcare and is based in Charlotte, N.C.

 



August 10, 2017


Topic Area: Project Management


Recent Posts

Innovations Thrive Within a Culture of Sustainability

Case study: Creative and unexpected evolutions happen when clear goals and opportunities converge in sustainability pilot projects.


What Amenities Do Healthcare Employees Want?

Amenities are a critical part of employee satisfaction.


Encompass Health Corp. Announces Plans for Florida Rehab Hospital

The hospital expected to open in 2027.


Kaiser Permanente Gets Hit with Email Hack

The hack happened in September 2024.


Building Better Healthcare Through Strategic Funding

For healthcare funding to succeed, facilities managers must ensure infrastructure investments are sustainable operationally and financially.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

 
 
 
 

Healthcare Facilities Today membership includes free email newsletters from our facility-industry brands.

Facebook   Twitter   LinkedIn   Posts

Copyright © 2023 TradePress. All rights reserved.