Special report: Choosing service contracts

by Loren Bonner, DOTmed News Online Editor | August 17, 2012

From the August 2012 issue of HealthCare Business News magazine

Time and materials agreements provide labor services and parts upon request. Services are typically charged on an hourly basis and include travel, on-site support and remote services. This type of agreement might be right for your facility if short-term cost is a top concern, some equipment downtime is manageable and your organization can handle additional risk in case you have a costly failure.

Review all available service contract options offered by the vendors you are considering, comparing level of service and pricing for each before making a final purchase decision. The least expensive contract may not always be the best solution financially. Your savings today may end up costing you 10 times the savings if the service provider is unable to deliver on the services you expected and agreed upon.

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Ask your service provider if you can change your service agreement levels as your business needs change.

Work on negotiating true relationships with your service provider, built on mutual respect and development support, to deliver the best system performance.

Purchasing an extended service contract at the time of your system purchase instead of after your warranty expires may help you negotiate savings.

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