Technology is designed to improve our life and make the world a better place. For bio-medical devices these improvements are designed to improve patient care: wireless Bluetooth connections, cellular connectivity, end tidal CO2, trending 12-leads, integrated charting features, etc. Everyone loves the technology, but no one likes the cost, and as organizations consider the looming economic concerns, everyone is asking whether manufacturer service contracts are worth the fiscal impact?
Purchasing extended service contracts for patient monitors, defibrillators, pumps, and ventilators used daily in the EMS and Hospital settings are often encouraged by the manufacturer at the time of purchase. Much like a new car extended warranty, these fixed cost agreements offer a perceived comfort that if something breaks, it’s covered. However, much like the new car warranty, these service agreements can have exclusions and hidden costs that add multiple expenses that were not anticipated in the maintenance and repair budgets.
Capabilities and reliability of bio-medical devices have come a long way in the last 25 years which have driven prices to over $30,000 for many devices, with a corresponding increase in the service agreement. During the same time there have been steady changes in monitor design that have led to profound improvements in reliability and durability. At the same time, the transition to lithium-ion batteries has changed the old paradigm of replacing batteries every two years. Lithium batteries cost more “per battery”, but also have much higher energy density, and long-life characteristics with minimal reduction in capacity. Batteries comprise a large part of monitor maintenance costs, how they are managed introduces potential to reduce operating expenses. If replacement batteries are included in your service agreement, the cost of the agreement will increase, but the delivered value will likely diminish.
Some manufacturers use software updates to increase the perceived value of their agreements, since the update can only be performed by a manufacturer’s representative. Other brands allow purchase of a software update tool, or even send a loaner tool at no cost to allow end-users to install updates themselves if they have appropriate resources. Software update implementation strategy should be part of a comprehensive Request For Proposal (RFP) when devices are purchased. The most important thing to remember is that medical devices are heavily regulated, and any serious software issues should be corrected free of charge by manufacturers under Food and Drug Administration mandate.
If you are facing budget constraints, avoiding costly service contracts might offer incredible savings. Teaming with Tri Mountain Biomedical would ensure quality maintenance and service of your equipment. It is important to realize that repairs will still be needed and can be extremely expensive in some circumstances. Stepping away from a repair plan is making a choice to be self-insured but taking responsibility for equipment handling and engineering controls will improve results in the long term. Taking the process of biomedical maintenance and repair internal and supplementing with third part biomedical certification/oversight contract that is inclusive of all equipment at the organization can make sound fiscal sense for small agencies with lower call volumes, as well as, busy metropolitan agencies where contracts can be an enormous budget line item.
Taking a retrospective look at costs and benefits might show a clear path forward and the use of third-party certification and oversight can make an enormous difference in readiness and fiscal impacts.
Tri Mountain Biomedical would value the opportunity to be your partner in maintaining and certifying your medical instruments. Don’t hesitate to contact us and get started right away! Call us today for a free biomedical assessment.