Last year, Modern Healthcare and Navigant Consulting published a study outlining that healthcare facilities can create over $25BN in savings if they optimize their supply chain operations and harness data. With 20% of all supply chain spend in the capital space, this means over $5BN in excess spend is essentially wasted by poor operational performance.
For Ambulatory Care facilities, improving the way equipment is bought and sold can have a disproportionately large impact on financial statements. Based on proprietary purchasing data from OpenMarkets, we’re seeing 4 key ways to stretch your capital dollars:
- Engage with multiple suppliers when buying new equipment
- Always consider refurbished equipment
- Research all equipment options, proactively, when building/renovating a new center
- Sell used equipment, rather than trading it in
Let's break these down a bit further:
1. Engage with Multiple Suppliers When Buying New Equipment
Finding the right equipment at the right price is easier than ever due to the power of the OpenMarkets platform. We saw this first hand in March 2019 when Coastal Eye Care in Ellsworth, ME connected with Haag-Streit on the purchase of a new surgical microscope:
"We had needed a microscope system for our practice, but those systems are often in the $200k range brand new. We sourced through OpenMarkets and found a far more economical option through Haag-Streit that fit our needs perfectly! OpenMarkets saved us the time on the search, put the quotes side by side so we could weigh our options, and ultimately saved us roughly $100,000 on this purchase.” - Dr. Lawrence Piazza, Coastal Eye Care, Ellswood, ME
Dr. Piazza's isn't the only success story. The following ambulatory care facilities have also found success finding the right new equipment on OpenMarkets:
- Great Lake Bay Surgery & Endoscopy Center in Midland, MI
- Open Door Family Medical Center in Ossing, NY
- Carson Black Lung Clinic in Pineville, KY
- Roanoke Ambulatory Surgery Center in Roanoke, VA
- Vascular Experts in Strafford, CT
2. Always Consider Refurbished Equipment
Refurbished equipment can cost 30-55% less than new models, with warranties that meet or exceed those offered with new products. If you're seeking to maximize your capital dollars, always evaluating a used equipment option is a smart strategy.
Many ambulatory care centers are using OpenMarkets to do just that, including:
- Shelby Baptist ASC in Alabaster, AR
- Columbus Endoscopy Center in Columbus, MS
- Sheridan Surgical Center in Sheridan, WY
- Sasco Hill Surgery Center in Southport, CT
- Zwanger-Pesiri Radiology Group in Lindenhurst, NY
3. Research All Equipment Options When Building/Renovating a New Center
A new surgical center typically buys between $1.5 - $1.9M in new equipment when it opens, getting the right patient care equipment in place for the doctors and nurses to do their jobs. Surgery centers and other non-acute providers in general typically do not have a whole department dedicated to equipment procurement, so it is important for them to simplify the process and maximize their spend as much as possible.
At a new surgical center being built outside Houston, TX last year, Janet Adams was in charge of getting the right equipment ordered on-time on on-budget. As Janet began working, her priorities were clear: cost savings and efficiency. After submitting 22 equipment requests, connecting with 15 Suppliers, and receiving quotes back in less than 6 hours on OpenMarkets, Janet was able to forgo pricey equipment from suppliers like Stryker and Smith & Nephew and instead maximize her dollars by choosing equally as good options from OpenMarkets Suppliers like STERIS.
4. Sell Used Equipment, Rather Than Trading It In
Selling old equipment can yield 40% or more value than trading it in to the manufacturer. This number is even larger if the equipment is still operational, as 3rd party buyers value what's still in use more than equipment that's been unplugged and pulled out of service by ~20%.
Surgery and Imaging Centers are finding OpenMarkets to be the single best platform to sell old equipment.
There are two main reasons selling equipment on OpenMarkets is the best way to recoup maximum value:
- You’ll be connected with multiple specialty remanufacturers. These suppliers often will pay more than a general remanufacturer, as they know just how to refurbish the equipment the right way and restore maximum value.
- Supplier inventories fluctuate. Using OpenMarkets ensures that you’ll be connected to multiple suppliers, and the one who needs your equipment the most is likely to pay the most.
Join these Ancillary Care Centers - and hundreds more - in selling your used equipment on OpenMarkets!
- Weil Foot and Ankle Institute in DesPlaines, IL
- East El Paso Physicians Medical Center in El Paso, TX
- Port Jefferson Ambulatory Surgery Center in Port Jefferson Station, NY