In June 2013, North Carolina resident EJ Snyder came face to face with the true meaning of the term “naked and afraid.” In the middle of Tanzania’s Serengeti Plain, unclothed, and without any of the bare necessities that he was used to having in his daily life, Snyder was forced into survival mode. What was he to do after enduring a painful foot puncture that caused his foot to swell to double its size?
The Discovery Channel’s series Naked and Afraid places willing participants, like Snyder, into extreme and dangerous situations. These participants must survive for 21 days without any type of coverage or protection. This same survival technique is played out in many healthcare clinics and centers each day. In the world of medical equipment maintenance coverage, the basic “clothing” is a protection plan for the maintenance and repair of the center’s expensive electronic equipment.
According to Huffington Post author Jason Hughes, Snyder was given onsite medical attention for his foot and went on to successfully finish the challenge. However, an inadequate protection plan for medical equipment may cause dire financial consequences to your business that may not be so easy to overcome. Is it worth taking the risk? You may be one of the fortunate few who sustain many years without requiring any type of service on your equipment. But when your good luck runs out will you be stuck with a huge equipment repair bill that could wreak havoc on your annual budget?
Eeny, Meeny, Miny, Moe
While most healthcare businesses struggle with some sort of budgetary constraint, the burden faced by medical practices and facilities, such as surgery and imaging centers, is twofold: you must both run a practice that produces a profit and provide the best possible quality care to your patients.
When it comes to budgeting, it’s easy to push less immediate purchases to the back burner. Line items that are not “optional” include payroll, rent, insurance, taxes, and utility bills. However, many practice owners view equipment service agreements as an “optional expense.” Manufacturer service agreements can be fairly expensive and unless you monitor and manage every maintenance and repair event and its corresponding cost, you aren’t certain if you’re getting your money’s worth.
Most of the Naked and Afraid contestants eventually find out that there are painful ramifications to being exposed daily to nature’s harshest elements. Hundred degree temperatures, bug bites, poisonous plants, or frigid rain takes a toll on the body. The most important thing to keep in mind when it comes to equipment maintenance is the total cost of ownership.
The initial purchase price and installation costs are only a small portion of the total lifecycle cost. Brand new equipment shouldn’t require frequent repairs, if any. Yet, the reality is that as your new equipment ages, it will eventually require corrective repairs and preventive maintenance in order to continue operating.
A strategy
Each contestant on the television show is allowed to bring only one personal item along with them. Yet, the most important item that they should never forget is a survival strategy.
The typical plan of action is as follows: build a structure for sleeping, start a fire, search for a water source, and then hunt for food. We all know that planning ahead makes events run more smoothly. Envisioning yourself as an asset manager will ultimately help you deliver the best possible care to your patients. Keeping this role in mind will help define the long term costs of owning the equipment, as well as the day-to-day operational costs. If you do choose to go bare in lieu of purchasing a service plan offered by the manufacturer, developing an alternate strategy for maintaining the equipment should be a top priority. Most manufacturers offer service on a time and materials basis, also known as pay as you go.
Another option is to have your equipment serviced by an Independent Service Organization (ISO). Most ISOs are owned and staffed with technicians that were formerly employed by equipment manufacturers. They can service a variety of brands and modalities of equipment and will often do it at a lower price. Internet research will help you locate independent service organizations in your area.
Finding qualified service providers capable of servicing your equipment can be time consuming, so you should do this research beforehand. Creating an equipment management plan will ensure that your center’s equipment will be safe, effectively used, available, and accurate.
Team work
It’s no surprise that the Naked and Afraid couples that work together as a team are more likely to survive the full 21 days. The same is true with managing your equipment.
In order to effectively and economically manage your medical equipment, end users must also work together. Tracking all information pertaining to each service event will be critical in assessing your investment. Communication is essential in order to accurately manage equipment.
This information includes:
- Date of equipment failure
- End-user’s name and contact information
- Failure information
- Error messages
- Name of Service Provider Called
- Date and Time Called
- Service Provider’s Estimated Time of Arrival
- Date and Time Service Provider Arrived on Site
- Amount of Invoice
You should file copies of all equipment warranties, service manuals, service reports, and invoices in one place for future reference and always let coworkers know where this information is located. You will also want to keep accurate, detailed notes on the performance of the service provider, such as did they honor the response time that they promised? Was the repair technician courteous and did they exemplify good customer service skills?
This information will help determine which service organizations you will want to utilize and buy equipment from in the future.
Adapt to circumstances
It is an ever-changing world that we live in. Mergers, acquisitions, and corporate restructuring has forced many healthcare manufacturers to reduce their workforces in order to improve profitability. Therefore, when choosing a service organization to support your equipment, it is important to be sure that they will have adequate technical support in your area.
Over time a service organization’s high quality of customer service may improve or diminish due to corporate restructuring. Hence, long term service agreements may not be the best option for you and could end up locking you into a lengthy service relationship that may turn disadvantageous. No one has a crystal ball; therefore, it is important to keep your options open so that you have the flexibility to utilize alternative service providers if needed. Multiple service options result in service providers working earnestly to acquire and keep your business long term.
It’s an understatement to say that surviving in the desert or the jungle without clothing is an incredibly uncomfortable experience. Many of the show’s contestants have borrowed items from nature in an effort to find creative ways to adapt to their surroundings. Bark, leaves, and vines have often been used to strategically screen sensitive exposed areas. This clothing alternative has helped many survive the 21 days and cushioned the effects of Mother Nature’s mean streak.
Fear not
The good news is that there are favorable alternatives available for managing equipment maintenance and repairs that provide coverage and support without breaking your bank.
Many healthcare professionals have implemented Equipment Maintenance Management Programs (EMMP) throughout their organizations at a much lower cost compared to the manufacturer’s service agreements. An EMMP is a one-size-fits-all garment of equipment management. These plans typically offer coverage on a wide variety of different equipment types with the added benefit of giving the end users the freedom to choose their preferred service organizations. Online management reports are included, which can assist in monitoring repair frequency and vendor performance.
Never allow fear to force you into buying a service plan. Take the necessary time to research and uncover all of your options before signing on the dotted line.
Emily Kulenkamp is a business development coordinator at Remi, the alternative to manufacturer service contracts and extended warranties.