8. Understand the true severity of the financial crisis, as
1.
related to healthcare.
l d h l h
Understand the traditional ways Biomeds have dealt with
2.
cost‐cutting directives and why they don’t work.
g y y
Identify specific ways in my own facility to make a
3.
financial impact.
Learn a new way to view Biomed and the way we
4.
4
contribute to the bottom line.
Learn from companies present how to affect the bottom
5.
line.
li
Learn from others in the audience about things that work
6.
for them.
48. Budget
Payroll, Tech
Payroll, Mgmt
Payroll Mgmt
Parts
Contracts
Outside Service
O t id S i
Training
Subscriptions
misc
49. Budget
Payroll, Tech
Payroll, Mgmt
Parts
Contracts
Outside Service
Training
Subscriptions
misc
50. Number of Productive Hours
# of BMETs x number of hours
3 x 1240 = 3720 Productive BMET Hours
(7
(70% productivity)
p y)
Cost analysis
Salary x 1.25 (benefits)
3 x $40,000 x 1.25 = $150,000 per year
Cost Per Hour of Productive BMET
Total cost / total hours = cost per hour
T t l t / t t l h t h
$150,000 / 3,720 = $40.32 per hour
Per hour cost increases as productivity increases.
Per hour cost increases as mgmt. and sec. costs added.
51. Includes all persons not turning a screwdriver
g
Supervisors
Secretaries
Parts Clerks
P t Cl k
Receptionists
All are viewed by upper management as much more
expendable than technical staff.
Must be able to justify their need very well.
j y y
53. Parts contracts can be evaluated for cost‐effectiveness.
Contracts that include labor are almost always BAD!
C h i l d l b l l BAD!
3 Components of a contract:
Certain (100%) need – PMs, PM kits.
Certain (100%) need PMs PM kits
Unknown (??) need – repairs (downside is always
inflated)
Unrelated extras –
Clinical support for users
Clinical training (for users)
Software upgrades
Greatest opportunities for cost savings
Compare biomed hourly costs to manufacturer hourly
costs.
56. Travel for a nurse or resp tech means going to an
annual convention.
l
If they don’t go for a few years, they can still take care
of patients.
of patients
If Biomeds don’t go to school, they soon become
obsolete, and are forced to put things on expensive
contracts.
Training for a Biomed means acquiring new skill to
save money.
Biomed travel and training should NOT be evaluated
the same as other hospital travel and training.
57. Travel for a nurse or resp tech means going to an
gg
annual convention.
If they don’t go for a few years, they can still practice
their profession.
h i f i
If Biomeds don’t go to school, they soon become
obsolete, and are forced to put things on expensive
obsolete and are forced to put things on expensive
contracts.
Biomed travel and training should NOT be evaluated
g
the same as other hospital travel and training.
58. Travel for a nurse or resp tech means going to an
gg
annual convention.
If they don’t go for a few years, they can still practice
their profession.
h i f i
If Biomeds don’t go to school, they soon become
obsolete, and are forced to put things on expensive
obsolete and are forced to put things on expensive
contracts.
Biomed travel and training should NOT be evaluated
g O
the same as other hospital travel and training.
59. Travel for a nurse or resp tech means going to an
gg
annual convention.
If they don’t go for a few years, they can still practice
their profession.
h i f i
If Biomeds don’t go to school, they soon become
obsolete, and are forced to put things on expensive
obsolete and are forced to put things on expensive
contracts.
Biomed travel and training should NOT be evaluated
o ed t a e a d t a g s ou d O be e a uated
the same as other hospital travel and training.
60. Travel for a nurse or resp tech means going to an
gg
annual convention.
If they don’t go for a few years, they can still practice
their profession.
h i f i
If Biomeds don’t go to school, they soon become
obsolete, and are forced to put things on expensive
obsolete and are forced to put things on expensive
contracts.
Biomed travel and training should NOT be evaluated
g
the same as other hospital travel and training.
72. No . . . . . .
because the pain is real.
b h i i l
And it will get worse. We haven’t seen
anything yet. We all have to tighten
anything yet We all have to tighten
our belts.
73. Yes . . . . .
Yes
. . . because the bigger goal is not to
just reduce Biomed costs but to
costs, but to
reduce HOSPITAL costs.
94. The key to remember:
The way for Biomed to increase value to the hospital is
to , not contract.
Biomedical Engineering specializes in wringing the
cost out of medical equipment service, while
maintaining (or increasing) the reliability, safety and
i t i i ( i i ) th li bilit f t d
accuracy for the overall good of the patient and
caregivers.
g
108. Old State: (phase 1 – total OEM contracts)
Manufacturer contract ‐ $250,000 / year
Transition State: (got trained, use third parties, begin doing PMs)
Train BMET, wait for contract to expire
T i BMET it f t t t i
Final State: (phase 4)
In‐house service
ouse se v ce
Savings:
$180,000 per year
Added benefit – first step into Imaging Service.
109. Old State:
Manufacturer Contract ‐ $44,000 per year
(hardware, software, upgrades)
(Cost of actual service delivered, if bought at market prices
(Cost of actual service delivered if bought at market prices
was $15,000 per year.)
Transition State:
Train BMET
Final State:
Service In house
Service In‐house
Savings:
$30,000 per year less cost of software upgrades
110. Old State:
Manufacturer Contract ‐ $425,000 per year
Transition State:
Switch to ISO, contract $250,000 per year
S it h t ISO t t $
Agreed to train in‐house BMET
Final State:
In‐house service
Promotion for BMET
Savings:
Si
$300,000 per year
111. Old State:
Manufacturer Contract ‐ $125,000 plus parts
Transition State:
Biomed manages outside contract
Final State:
Biomed hires Facilites Eng, cancells contract
Savings:
Si
$75,000 per year
Hired person from engineering.
114. Best ideas from around the country:
Keep end‐of‐life equipment operational as long as
financially and technologically feasible.
Buy used equipment for spares, parts, backups.
Buy used equipment for spares parts backups
Remove unused medical devices from service, retire,
adjust staffing and costs accordingly.
Purchase used, refurbished equipment to stretch capital
dollars.
.
115. Best ideas from around the country:
Keep end‐of‐life equipment operational as long as
financially and technologically feasible.
Buy used equipment for spares, parts, backups.
Buy used equipment for spares parts backups
Remove unused medical devices from service, retire,
adjust staffing and costs accordingly.
Purchase used, refurbished equipment to stretch capital
dollars.
Barter trade service with area hospitals, instead of
Barter – trade service with area hospitals instead of
duplicating training.
117. Encourage people to use their PTO. While it does not show
up any different in our actual budgets, it does reduce the
py g,
debt liability for the hospital. They have already accrued
the expenses, so if people actually use the PTO, they reduce
the balance in the accrual account.
Stretch out the calibration on test equipment, do it every 2
years instead of every year, unless you start to see drift with
specific devices. Just make sure your policies are updated
to reflect what you are doing there.
to reflect what you are doing there
See if you can sell any of your old test equipment (NOT
medical equipment) on eBay and use that money for new
tools, etc.
tools etc Make sure that your hospital has approved that
approach, though, and that everything is above board with
tracking the assets.
Karen Waninger
Director, Clinical Engineering
Community Health Network
122. It’ll be worse before it is better.
1.
Everybody is in the same situation.
2.
Expand your vision beyond patient care.
3.
The Biomed is the least costly way to maintain
Th Bi d i h l l i i
4.
medical equipment.
To save more, Biomed must expand.
5.
Travel and training budgets for Biomed are different
6.
than for the rest of the hospital.
Use the sponge analogy to identify your sponges.
7.
Use SVR and the parfait slide to identify fat sponges
8.
which need squeezing.
which need squeezing
NETWORK – use your friends for ideas.
9.
126. For a copy of this presentation,
f hi i
email plynch@GMI3.com
For assistance with a plan to move
safely into imaging service, contact
plynch@GMI3.com
l h@GMI3
If you would like this p
y presentation made for y
your
organization, contact plynch@GMI3.com or
patrick@plynch.us