From the August 2014 issue of HealthCare Business News magazine


Knowing what you want and getting what you know
For hospitals utilizing in-house staff for preventative maintenance and repairs, there are a few things they need to know in order to control and predict parts costs, according to Mike Schwarzwalder, director of service marketing for STERIS.

First, the total cost of the required part needs to be determined. That includes acquisition, any carrying, obsolescence cost and down time for equipment. The need to know doesn’t end there. It’s also necessary to know the right parts to inventory in order to get things up and running with the first call. OEMs should have data available that will allow them to help in the process, says Schwarzwalder.
Those same manufacturers may have auto-ship programs for PM parts. That option helps reduce in-house storage needs, while providing a physical and timely reminder of the need for a PM.

Finally, by ordering parts from the OEM, you know you’re getting a part that will precisely fit the same part it’s meant to replace, thereby removing any risk of repair delays due to a non-compatible part. “I travel frequently and it never fails, every time I am out there I hear stories about the wrong part being sent, it was a used part or, a previous generation,” says Schwarzwalder. “While the initial price may attract attention, it is really the long term cost that needs to be considered. Also by using OEM STERIS parts you are assured that it will not void the warranty.”

For facilities tapping STERIS for service, the company technicians start with more than 250 hours of initial training on STERIS exclusive equipment. That’s followed by yearly specialized and new product training, which may equal as much as 80 hours. On average, company techs have been working at STERIS for more than 12 years. Trucks also carry a market specific inventory of replacement parts. The goal is to provide customers with service coverage 24/7, powered by more than 850 field technicians, customer service and training programs, according to the company. This has helped spawn the phrase used by some techs, “call us by lunch and we’ll be there by dinner,” in regard to their response rate.

It’s not just the techs in the field going the extra mile though. STERIS has 20 in-house service engineers who continually evaluate data from field repairs as well as data fed through their ProConnect Response Center which all helps determine if adjustments are needed for the company’s proprietary preventative maintenance check list.

For a hospital’s checklist, at least when it comes to negotiating service contracts, Schwarzwalder cautions against quick comparisons of just labor charges. Instead, make sure to look at the entire picture and all the potential expense that entails. That includes not only labor, but parts costs, response times, travel charges and the timeliness and quality of the service provider’s preventative maintenance program.

August 2014 Magazine

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