Comparing the efficiency and effectiveness of medical equipment repair programs in hospitals is a challenge. No two programs are the same. This presentation demonstrates a simple way to compare large, small, urban or rural hospitals.
7. WHY BENCHMARK?
Patrick L
Administration
Lynch plynch@
Prove the value of a department
compare to others in your network
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identify areas for future improvement
Self assessment
Self-assessment
Internal means for Clinical Engineering to
evaluate to others in the field. 7
8. WHY BENCHMARK? (2)
Staffing
Patrick L
Provides an alternative to the old FTE Model
Lynch plynch@
Job Security
demonstrates understanding of hi h l
d tt d t di f higher level
l
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metrics and control of your responsibilities
Pay
Value of more productive employees and
operations.
operations 8
9. WHO NEEDS
TO Size
BENCHMARK
Under 100 beds
?
100 to 300 b d
beds
300 to 500 beds
Patrick L
500 plus b d
l beds
Lynch plynch@
Metro / Rural
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Large City
Small city
Rural
Critical Access 9
Distance to city of 500,000?
10. WHO NEEDS
Teaching
eac g
TO
University
BENCHMARK? Medical School
(2) non-teaching
non teaching
System
Patrick L
SIngle hospital
Lynch plynch@
SIngle hospital plus outpatient
Multiple hospitals locally
Multiple hospitals, multiple cities
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Specialty vs. general hospital
Cardiac
Children's
Child '
Surgical
Cancer
Psych 10
12. THINGS TO CONSIDER
Cost
cost of biomed program
Customer Satisfaction
Patrick L
uptime
Lynch plynch@
incidents
overall satisfaction
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customers
clinical departments
administration
other support departments
risk management
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13. THINGS TO CONSIDER (2)
()
Regulatory Compliance
Value Added
V l Add d
user training
Patrick L
annual required
new employee
Lynch plynch@
refresher operator
special projects
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building / expansion
disaster plans
committees
EOC
Infection Control
Capital Equipment
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14. WHAT TO MEASURE
# of Beds
# of Surgeries
Patrick L
# of Rad Rooms
Lynch plynch@
# of ICU Beds
# of monitored beds
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# of medical devices
Adjusted Discharges
Value of Equipment
Cost of Operations
Uptime 14
15. WHAT TO MEASURE (2)
()
Failure rate
# of workorders
Patrick L
# of PM workorders
% on time
ti
Lynch plynch@
# of Corrective Workorders
# closed
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% closed
hospital demographics
Square Footage
q g
geography
services
public/private
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urban/rural
16. THE MAIN PROBLEMS
We are all different.
1.
1
We ask for information that does not exist.
2.
Patrick L
We haven’t decided what metrics matter
haven t matter.
3.
3
Lynch plynch@
We haven’t decided what is the definition
4.
of:
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Unacceptable
Poor
Adequate
Good
Excellent 16
17. PROBLEMS
Scope of services
Anesthesia
Laboratory
Patrick L
Imaging
gg
Lynch plynch@
CT
MRI
Nuclear Medicine
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PET
Radiation Therapy
Ultrasound
Dialysis
Sterilizers
Nurse C ll
Call 17
18. PROBLEMS (2)
()
Where
Wh
Location in the US is often
Patrick L
cited as a complicator
Contract or in-house
Lynch plynch@
Geography - city or widespread
Leader - BMET, engineer,
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business
Reporting Structure
IT
Administration
Facilities
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19. PROBLEMS (3)
()
Data Availability
Cost of equipment not
recorded
Patrick L
Documentation of
Biomedical Activities not
Lynch plynch@
recorded
easy if all costs are in
y
@GMI3.com
a single budget or a
single contract
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20. OTHER THOUGHTS/ FACTORS
Length of time department in business
g p
Compare costs to other industries
Patrick L
Chargeback Structure
Lynch plynch@GMI3.com
Length of time manager in place
CMMS
@
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25. SERVICE VALUE RATIO IN ACTION
FOR A SINGLE ITEM OF EQUIPMENT
Cost of CT Scanner - $1,000,000
Patri Lynch plynch@GMI3.com
Annual Service Contract - $150 000
$150,000
ick
SVR = $150,000/$1,000,000 = 15%
c m
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26. SERVICE VALUE RATIO IN ACTION
FOR A SINGLE ITEM OF EQUIPMENT
Cost of CT Scanner - $1,000,000
Patri Lynch plynch@GMI3.com
Annual Service Contract - $150 000
$150,000
ick
SVR = $150,000/$1,000,000 = 15%
c
Cost of a thermometer - $400.00
Annual cost of all maintenance = $35 00
$35.00
m
SVR = $35 / $400 = 8.75%
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27. SERVICE VALUE RATIO IN ACTION
DEPARTMENT
FOR A SINGLE
Patrick Lynch plync
i ch@GMI3.com
Cost of Equipment in Central Supply - $290,000
Annual cost of Maintenance - $20,000
m
SVR = $20,000/190,000 = 6.90%
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28. SERVICE VALUE RATIO IN ACTION
CONTRACT
FOR A SINGLE
Patri Lynch plync
ick
Cost of Anesthesia Machines = $3,600,000
ch@GMI3.com
Cost of Annual Service Contract = $432,000
SVR = $432,000/$3,600,000 = 12%
m
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29. SERVICE VALUE RATIO IN ACTION
HOSPITAL
FOR A SINGLE
Patri Lynch plync
ick
Cost of Equipment = $113,000,000
qp
ch@GMI3.com
Annual Biomedical Budget = $5,200,000
SVR = $5,200,000/$113,000,000 = 5.13%
m
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30. SERVICE VALUE RATIO IN ACTION
VENDOR
FOR A SINGLE
Patri Lynch plync
Cost of Equipment (Patient Beds) = $12,000,000
$12 000 000
ick
Annual costs from HillRom (contract + PM + parts) =
$2,220,000
ch@GMI3.com
SVR = $2,200,000/$12,000,000 = 18.5%
m
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31. SERVICE VALUE RATIO IN ACTION
EQUIPMENT
FOR A SINGLE TYPE OF
Patri Lynch plync
ick
Cost of all Infusion Pumps = $2,400,000
ch@GMI3.com
Annual sum of Maintenance costs = $
$264,000
SVR = $264,000/$2,400,000 = 11%
m
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33. THE MAIN PROBLEMS ANSWERED
We are all different. Use Metric that adjusts
1.
for variables.
We ask for information that does not exist.
Patrick L
2.
Use a Metric that uses FEW, easily accessible
, y
Lynch plynch@
numbers.
We haven’t decided what metrics matter.
3.
Always $$$$$$$$$$$
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We haven’t decided what is the definition of:
4.
Unacceptable SVR greater than 15%
Poor SVR greater than 12%
Adequate SVR less than 12%
Good SVR less than 8%
Excellent
E ll t SVR l less th 6%
than 33
34. Automatically adjusts for differences in size,
ADVANTAGES scope, contracts, outsourced.
Easily
E il accessible b any f ili
ibl by facility
Scalable - it applies and compares . . .
single item
Item List price
Item Annual cost
single manufacturer
Patrick L
Manufacturer List Price
Manufacturer Annual Cost
Lynch plynch@
single equipment type
Equipment Type List Price
Equipment Type Annual Cost
single department
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Department Equipment List Price
Department Annual Cost
single hospital
Hospital Equipment List Price
Hospital Annual Cost
single system
System Equipment List Price
System Annual C
S A l Cost 34
35. 1) LIST PRICE OF ALL ASSETS MAINTAINED
Start with estimates and get more
specific over time
Patrick L
Average list of every asset
A li f
Lynch plynch@
$12,000
Average list of each type
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Infusion Pump - $5,000
Specific list of each model
Alaris - $7,000
Abbott - $4,000
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36. 2) ANNUAL COST OF MAINTAINING ALL ASSETS
)
Include
I l d ALL COSTS
Include PM, repair, overhead, etc.
Patrick L
Examples-
Lynch plynch@
Labor
Benefits
Training
g
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On-call
Test Equipment
Calibrations
Outside Labor
Outside parts
Service Contracts 36
Secretarial and supervisory costs
37. DISADVANTAGES
Patrick L
Examines only costs
Lynch plynch@
Simplicity may cause
it to be rejected by
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some
37
38. RESULTS
Patrick L
Lynch plynch@
12% - 20% - MManufacturer C t t
ft Contract
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9% - 15% - 3rd Party Contract
8% - 12% - Outsourced In-house
4% - 8% - In-house programs
pg 38
39. THE NEXT STEP
Write a paper defining
the process.
Conduct comparative
studies to validate
Patrick L
t e et odology.
the methodology.
Lynch plynch@
Make adjustments as
necessary.
y
@GMI3.com
Promote to
Biomedical field.
Develop additional
metrics for customer
satisfaction, etc. 39
42. A REAL-LIFE EXAMPLE OF THE USE OF SVR
TO ANALYZE A GROUP OF EQUIPMENT
Patrick L
Lynch plynch@
Let s
Let’s examine all of our
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Warming Blankets to see if
we have any lemons. . .
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