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Monday, August 31, 2015

This Month's Webinar Highlights - How to Save 12-16% on Your Capital Medical Equipment Budget

If you didn’t join Miga's latest monthly webinar, "Learn 3 Ways to Save 12-16% of Your Capital Medical Equipment Budget," here's a quick summary and how to catch up.*

How Hospitals Miss 12-16% Savings during the Capital Budgeting Process

 As Miga CEO Peter Robson shared, the key to driving recurring savings doesn’t start with the deal; it starts with the capital budgeting process. Too often, hospitals take a snapshot planning number from an OEM and plug it into the budget. This might be a great way to pad the budget estimate, but hospitals tend to rely too heavily on it.

There are three key steps hospitals can take in order to identify savings in the budgeting process: 


1. Avoid the “Curse of the Planning Quote” – Planning quotes are often 20-30% higher than actual purchase prices. Robson recommended never committing to a planning quote and fully benchmarking any subsequent quotes you receive. Miga was able to help a client save $320,000 (17.2%) on an MRI compared to the original planning quote.

2. Be Selective In Disclosing Capital Approval – Don’t ever disclose any aspect of your budget to vendors. We know of one hospital that overpaid by $140,000 (12%) on an ultrasound fleet purchase because they disclosed capital approval and thereby limited any negotiation leverage they might have had otherwise.

3. Maximize the Resale Value of Old Equipment – Don’t overlook the pricing leverage in your existing equipment. Most hospitals vastly underestimate either trade-in or resale value because they don’t have access to the right information, but there is a large opportunity to maximize old equipment by utilizing an equipment replacement strategy earlier in the capital budgeting process. By tackling the equipment replacement strategy early on in their capital process, one Miga client saved $1.2 million on an infusion pump purchase by reutilizing existing units internally and maximizing the resale value of the remaining pumps.

By utilizing the tips listed above, Robson is confident that hospitals can drive a more accurate budget faster and easier than ever before and find the 12-16% savings that otherwise would have been missed.

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