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As in-house capabilities grow, contracts become customizable

by Lauren Dubinsky, Senior Reporter | August 14, 2017
Parts And Service
From the August 2017 issue of HealthCare Business News magazine


Then there’s a discussion about where the department wants to be and Siemens develops a plan for how to get it there. For example, if the department is going to hire five engineers in the next five years, then Siemens will provide a recruiting and training roadmap.

The Share360 program is also designed to fill in gaps. Running a tool and test program can be very expensive and it’s difficult for hospitals to manage, according to McCallum, but that’s something that Siemens is offering to do on their behalf as part of the program.

"They all have this aspiration to mature and grow more value within the organization and that's where we want to help them,” he says. “We've been doing this for a long time and we know how to do it efficiently and in a quality way."

Advocate’s Vanderzee is on the advisory board for the Share360 program, which Siemens meets with routinely to get an understanding of what the departments need as they mature. The program was essentially built on the board’s advice and input.

“The manufacturers see the advantage of partnering with the in-house programs because if they like the equipment and the support provided, then there is a better chance they will be the next replacement option for them,” says Vanderzee.

Advocate purchases most of its equipment from GE Healthcare, which also understands the customer’s desire for a more flexible service agreement.

Rob Reilly

“Service contracts by their very nature are custom-designed solutions,” says Rob Reilly, vice president and general manager of GE’s U.S. and Canada services business. “Every contract is different and, within agreements, every device may have different coverage levels or maintenance strategies.”

GE has a variety of contract options that range from fully outsourced with 100 percent risk transfer to in-house engineer training and backup support.

When a piece of equipment fails, Advocate’s first step is to have the in-house engineers assess the problem. If it’s something they can’t repair, then they will have GE engineers come in to fix it.

“For our organization, we never say we’re not going to use the manufacturer,” says Vanderzee. “We always have the manufacturer as our primary support whether to do the work day to day or to be our backup.”

Like Siemens and GE, Philips Healthcare also partners with its customers to help strengthen their in-house teams.

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