NCHN Blog

How Montana Health Network Saved over $38,000 on MRI Equipment

NCHN Member
Jan 19, 2015 12:09 PM

Montana Health Network in partnership with Northland Healthcare Alliance in North Dakota created the MonDak Imaging Services LLC. Their purpose was to provide mobile imaging services, specifically MRI, to rural facilities who either did not have adequate volume or could not afford to purchase their own equipment. Using this mobile structure, people in these rural communities no longer have to travel for MRI’s. The MonDak Imaging Services LLC started with one machine and in 10 years grew to five MRI’s. To remain flexible and competitive, MonDak also offers long term leased placements and financing services for other equipment, such as CT’s.

EMTS, Silver Business PartnerMaintaining high quality mobile imaging services requires constant equipment upgrades. MonDak was in a position where it needed to change out a trailer for a mobile unit. Based on expected downtime, it was more affordable to purchase a new MRI and sell the one needing the trailer replacement. Once a quote was received, MonDak contacted Brian Baca at EMTS, a regional partner of NCHN, and asked for a pricing review. EMTS then contacted the vendor directly to further negotiate the price. The vendor was not particularly receptive to this arrangement but MonDak and EMTS together, were able to reduce the price by $15,000. While in discussions with the vendor, EMTS contacted another vendor to see if they would buy MonDak’s machine instead of including it as a trade-in with the original vendor. Brian’s interest and efforts saved MonDak an additional $23,750 because of his contacts in the marketplace. The total savings were $38,750.

This entire transaction with EMTS took approximately one week. Brian researched the market and brought back viable solutions. MonDak could have broken a long term, valued relationship with a vendor and saved another $10,000 but wished to maintain that partnership. There was no pressure from EMTS to change vendors.

MonDak learned two things from this process. First, there is room for negotiation especially when a company like EMTS has such broad marketplace information. Second, to make this work MonDak and EMTS had to be a team and that made all the difference.

In a separate project, Montana Health Network was in the final stages of purchasing a patient simulator for educational purposes. Larry Canterano from EMTS worked on that project and MHN saved the staff training costs which amounted to approximately $3,000. The lesson on this transaction was that even small purchases should be considered as an opportunity to better negotiate and save resources with the help of EMTS.

For more information about Montana Health Network, contact:

Janet Bastian, CEO
406-234-1420

For more information about EMTS, Silver Business Partner, contact:

 

Mark Martin, Director, Sales & Marketing, EMTS
720-875-0505 ext.9926

 

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Equipment Cost Savings Case Study: How EMTS helped keep a Point of Care program running and saved thousands in the process

NCHN Member
Mar 17, 2014 05:08 PM

SynernetEMTS

A rural healthcare organization located in the northernmost part of Maine turned to EMTS for help in finding a company that would allow for the continuation of the Point of Care program utilizing new and updated glucometers for blood glucose levels.

EMTS (www.emtsolutions.biz), a national partner of NCHN (National Cooperative of Health Networks), first met the hospital’s CFO at an introductory meeting with representatives from Synernet in late October 2013. Synernet is an outsourced provider of healthcare services primarily to hospitals, physician practices and surgical centers. They are owned by a number of Maine hospitals including this facility. Synernet met EMTS in April of 2013 at the NCHN Meeting in New Orleans. NCHN (National Cooperative of Healthcare Networks) has a master agreement with EMTS for their Capital Equipment Services in which Synernet was eligible to participate. EMTS signed an agreement with Synernet in 2013 geared to help their members and owners save money on capital equipment acquisition and related service.

In early November the hospital reached out to EMTS because the glucometer equipment that was currently being used at the hospital was being removed from the marketplace on 12/31/2013 and the hospital needed some help exploring alternatives. This was the first project being submitted to EMTS utilizing the recently signed Synernet/NCHN Agreement.

EMTS coordinated a conference call with the CFO and DON to discuss this project. During the call it was learned that a proposal had been submitted by a new national supplier in late September and it was determined based on the discussion that the hospital would like to look at alternatives available in the market. Through their extensive market knowledge and historical purchase database, EMTS determined that there were 3 primary companies in this marketplace, and initiated contact with each potential vendor.

It soon became evident that due to the large manufacturer pulling out of the business at years end, the remaining companies did not want to commit or have the resources to get this project completed prior to 12/31/2013. This was compounded by the fact that this hospital was “extremely rural” and access to the site was difficult. Overall, this project was a challenge from the start, with many moving parts and complications, but EMTS was successfully able to work through the process over several weeks and phone meetings.

Ultimately, EMTS was able to provide multiple options for the new glucometers that were integrated with the hospital’s existing information system. These options included capital purchase and reagent amortization with savings ranging from 10% to 36% over the original project that was submitted. The hospital ended up electing the reagent rental option and in doing so received the latest technology, title to the equipment after the term and direct cost savings in excess of $10,000.00. Most importantly, the Point of Care program was implemented prior to the 12/31/2013 and the continuum of care never suffered.

For More information on this case study, or to discuss in detail how EMTS can help your organization maximize your current capital budget, please contact:

EMTS - Larry Cantarano, VP Strategic Sourcing, Ph. 720-420-7966, lcantarano@emtsolutions.biz

Synernet - Mike Hutchins, Director of Clinical Engineering, Ph. 207-771-3420, mhutchins@synernet.net

General, Business Partners
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