Historically, when hospital leaders made equipment purchasing decisions, they looked at the simple line item cost of the hardware and possibly accounted for some anticipated service over the life of the device. In recent years, with increased pressure to better control costs due to budget cuts and decreasing reimbursements, these factors are no longer enough to help hospitals capitalize on their investments. Now, more than ever before, health care facilities need to be more strategic when evaluating purchasing decisions in order to take full advantage of their assets. Within the current health care economic situation, facilities are starting to allocate more time and resources to analyzing their equipment purchasing decisions based on the “total cost of ownership.”
Total cost of ownership spans beyond line-item costs to include implementation and device training, consumable items needed to operate the device, preventive maintenance schedules, estimated downtime costs associated with unexpected repairs, potential safety risks for staff and patients, and the potential for enhanced patient care associated with new technology. To help shift purchasing decisions to account for the total cost of ownership and help your facility save in the long run, you can start by addressing the following items in your purchase evaluation process:
• Training: Everyone knows time is money. So evaluating the cost of purchasing and integrating new equipment into a facility should take into account how many staff members will be required to be trained to properly use, clean, and store the equipment. This also accounts for equipment that requires competency testing, which can sometimes lead to retraining staff if they do not pass the first time. The more staff members needing to be trained and the amount of time they will have to spend in training costs the facility money.
• Operation: Some equipment might work independently while other pieces require secondary components for operation. When purchasing new equipment, it is important to understand how the equipment works and what additional parts might be needed for operation. Although a sticker price might be low, the total cost of ownership can creep up when consumables or disposables are required.
• Impact on Patient Care: Recognizing the role a piece of equipment can play in improving patient care is also important when considering total cost of ownership. For example, Wake Forest University Baptist Medical Center (WFUBMC) in North Carolina found that specially- designed hospital beds have helped reduce the frequency of patients acquiring stage 3 pressure ulcers, a condition that can significantly extend length of stay and overall cost of care.
