Get the Capital Equipment You Need
As directors, we all know how hard or impossible it is to obtain capital for equipment. However, there are ways to increase your chances next time you submit your request.
First, you must know the hierarchy of the "crisis" of capital as viewed by the board of directors and your administration. Here they are from most important to least:
1. Emergency (service will shut down if not replaced)
2. Replacement (return on investment, ROI, makes sense to purchase over leasing)
3. Replacement (manufacturer no longer supports system)
4. New equipment for new service or additional equipment (must have a positive ROI or business plan).
Most manufacturers support their equipment for about 10 years, so check with them. Your biomed department can help with this, or a letter from the company will do. Always go for replacement equipment if possible unless it is an emergency. Do your homework; show the increase in volumes and the amount of service the new product produces.
Another approach is from a quality or infection control angle. If you can show how your request can decrease the length of stay, decrease mortality, and increase productivity, you are well on your way. Also, don't forget to get your medical director's buy in.
Look for hidden points or rebates. For example, most hospitals have the pulse oximeter modules fitted into the monitors. The nursing floors purchase the disposable oximeter probes at a contracted price per purchasing and the oximeter company in return for the modules. The hospital receives so many points for the number of probes it buys each month. Many times the hospital purchases more probes than the contract states and has plenty of extra points sitting around. Look for these points and see what you can use them for. The company may sell other products that your department can use.
Check with your purchasing department to see if there are any other purchases that are planning to be made from the facility through the vendor you are interested. Remember many vendors are partners with different franchises. You would be surprised how many times you can get a major discount by including your equipment purchase with another purchase being made from another department.
Be capital savvy. Once the fiscal year starts and capital is approved, don't wait -- buy. The longer you wait, the greater your chances of losing it to another department or having it being put on the "frozen" list because someone else's poor planning became the emergency that used up your capital. Good luck and remember: Your staff deserves the best, and it's your job to get it for them.
'Til we blog again,
Scott