Key Stakeholder Perceptions of Standard vs. Total Cost of Ownership: A Procurement Analysis for Orthopaedic-Powered...

Area of Science:

• Healthcare Management
• Supply Chain Management
• Medical Device Procurement

Background:

• Standard procurement methodology (SPM) is widely used but may not reflect true long-term costs.
• Total Cost of Ownership (TCO) offers a more comprehensive financial evaluation for procurement decisions.
• Orthopaedic-powered instruments represent a significant capital investment for hospitals.

Purpose of the Study:

• To compare the perceived ease of use and preference between SPM and TCO for procuring orthopaedic-powered instruments.
• To identify barriers to the adoption of TCO in hospital procurement.
• To explore strategies for simplifying TCO implementation in the healthcare sector.

Main Methods:

• Semi-structured, standardized interviews were conducted with 33 key hospital procurement stakeholders.
• Consolidated criteria for reporting qualitative research (COREQ) guidelines were followed.
• Qualitative data analysis was employed to identify themes related to procurement methodology adoption.

Main Results:

• All interviewed stakeholders (100%) found SPM easier to use than TCO.
• Despite ease of use, only 18% of stakeholders preferred SPM over TCO.
• Barriers to TCO adoption were identified as a significant theme in the study.

Conclusions:

• While SPM is perceived as simpler, TCO is preferred for its comprehensive financial insights.
• Addressing adoption barriers through simplified frameworks is crucial for TCO implementation in healthcare.
• Developing user-friendly TCO frameworks can enhance its acceptance and utilization in hospital procurement.