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Technology management: a perspective on system support, procurement, and replacement planning.

M L Dickerson, M E Jackson

    Journal of Clinical Engineering
    |March 1, 1992
    PubMed
    Summary
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    Managing medical technology service costs is crucial for hospitals. Innovative strategies, including maintenance insurance, can reduce expenses and improve capital equipment replacement planning for better financial outcomes.

    Area of Science:

    • Healthcare Management
    • Biomedical Engineering
    • Health Economics

    Background:

    • Escalating medical technology costs challenge hospital clinical engineering departments.
    • Service and support expenses represent a significant portion of a system's life cycle cost.
    • Hospitals are exploring diverse service models beyond traditional full-service contracts.

    Purpose of the Study:

    • To explore innovative management strategies for medical technology service providers.
    • To introduce a novel approach for capital equipment replacement planning.
    • To provide a method for quantifying system replacement decisions.

    Main Methods:

    • Analysis of various service provider mixes: full-service contracts, demand service, third-party independents, and medical equipment maintenance insurance programs.

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  • Development and illustration of a replacement planning approach based on estimated system value changes.
  • Utilizing client consultation data to demonstrate the proposed replacement planning method.

    • Main Results:

    • Medical equipment maintenance insurance offers a flexible, budget-capped alternative to traditional service contracts.
    • The proposed replacement planning method estimates prospective system values considering operational costs, revenue, and technological advancements.
    • This approach offers a simplified, quantifiable alternative to traditional depreciation-based asset evaluation.

    Conclusions:

    • Hospitals should refine system evaluation and capital equipment replacement planning methodologies.
    • Innovative service management and proactive replacement planning are key to controlling long-term technology costs.
    • The described replacement planning method provides a standardized approach to quantify equipment replacement decisions.