Posted by Dick, 12/24/2009 4:02:40 AM

There is a very simple answer to the question of how to get what you or your department wants.  All that need be done is to show "Value" to your organization and depending upon how much value can be shown you will be able to almost always get what you want.

Here is an article that was sent to me some time ago about something we all can do that is a very good illustration of value:


Showing Value  - by Alfred Winnberry, Clinical Engineering Consultant


The challenges of today’s healthcare demand the reduction of cost for delivery.  Newer technologies and best use of these technologies are primary factors to accomplish this desired result. The maintenance and support of the medical equipment used is where we fit into this equation.  Our contributions can and do have a significant impact on the bottom line dollars involved which is what the delivery administrators are most concerned about .  It is up to us to devise our own methods to show this value.  It is the intent of this article to outline one such method that has proven to be very effective for this purpose.

Capturing Cost Avoidance, A Revision Of What We Have Always Done…

One of the primary functions of a Biomedical/Clinical Engineering Department is to save money.  Many departments in a hospital are revenue generators.  BE/CE is just the opposite.  It is easy for a revenue generator to say, “Look how much money we made for the hospital,” But it is slightly more difficult but equally significant for BE/CE to say, “Look how much money we saved for the hospital.”

What is the most important rule that we must follow?  It is simply, “No reduction in quality.”  This means that whatever we do as an effort to save money cannot be something that would be considered a cheap move.  We cannot use or do something that is lesser then top notch.  We much always maintain top quality.

Enter the new term for what we are doing, “Cost Avoidance”.

Cost Avoidance is saving money without reducing quality in any way.  Most BE/CE Departments do this as a normal routine.  Most Biomed Techs and Clinical Engineers do this almost automatically without giving what they are doing much real thought.  We are all guilty of saying, “It is what we do, and we do it all the time.”  The most difficult part of Cost Avoidance is the Documentation Requirement.  Most Biomed Techs and Clinical Engineers hate “The Paperwork”.  I am sorry to have to tell you this but unfortunately there is no real easy way around this.  In order to show this particular type of value for our BE/CE operations we must collect and document the information so it can be reported to the healthcare delivery administrators.

How can this best be done with the least amount of work?

Let’s start with replacement parts.  When we are ready to initiate a repair of a device call the original equipment manufacturer and get the part number, availability, and price.  This is essential and will be used for the comparison.  Next see if there is an alternate source for an equivalent part.  Call the supplier and get their part number, availability, and price.  Determine if Cost Avoidance is possible.  Repeat this process as many times as is needed and remember that the determination of possibility is judgment call and it is why you are employed.  Next let’s look at service/repair labor.  Once again call the original equipment manufacturer and get their per hour service/repair rate and their travel rate.  Next call any alternate service providers that may be available for this work and get their per hour service/repair rate and their travel rate.  Do a comparison of the information and be sure to include what the costs would be if the work was completed using in-house Biomed Tech or Clinical Engineer labor.  Determine if Cost Avoidance is possible.  Now comes the hard part.

Documenting the results.

Unfortunately this must be done or our efforts and hard work will not be appreciated by anyone but ourselves.   There are two ways I have seen used most often to get this information collected and into a useable format.  Create a spreadsheet and record everything on it.  Information on a date sorted spreadsheet can be reported every month or every quarter and the total dollar amount of Cost Avoidance for a given period can easily be shown.  Most BE/CE Departments have some sort of Computerized Maintenance Management System (CMMS) and the Cost Avoidance information can be collected for each work order and reported as needed.  I have seen only one CMMS software package that had a specific Cost Avoidance section in the program but as we turn this procedure into our everyday practice more will surely be available.

Keeping your thinking open.

Medical Equipment and Technology Support is our contribution to the healthcare delivery process.  How we do it is left up to those of us in our field.  Being creative is an essential part of your job.  Think outside the usual box and find ways to show the value of what you do.  The rewards for your efforts will be returned to you in ways that you never ever imagined.


Permission to reprint or use this article is granted as long as credit is given to the author.

Posted by vsarmiento, 1/1/2010 8:04:39 AM

Value added approach as stated above by Mr. Winnberry, is indeed a proven and effective way of achieving and promoting the Clinical Engineering department.   More so when it is presented to be a revenue generating center rather than just being another cost center for any institution.