Technology-enabled Repair and Service Agreements help health systems expand financial, labor, and clinical capacity
CLEVELAND, June 15, 2023 – PartsSource®, the leading online healthcare marketplace for mission-critical products and services, today announces PartsSource Repair and Service Agreements. This customizable solution expands total healthcare technology management (HTM) capacity by consolidating multiple service contracts into a single, evidence-based agreement with maximum flexibility, lower costs, and vendor choice in a digitally powered, transparent service experience.
The company revolutionized parts procurement with the introduction of PartsSource PRO®, the industry’s first clinical resource management platform implemented by over 1500 hospitals to achieve measurable cost, quality and efficiency outcomes. To understand if the same principles applied to a much more significant component of an HTM department’s budget – traditional service contracts – PartsSource conducted an intensive longitudinal analysis of service contracts.
PartsSource will demonstrate the new capabilities and share insights from its recent study in an educational session at the Association for the Advancement of Medical Instrumentation® (AAMI) Exchange in Long Beach, California June 16-18.
- A typical hospital manages 146 service contracts on average.
- Contracts take 3-4 months to negotiate and activate, with 76% at low value.
- Service contracts account for 50% of an HTM departments’ budget.
- Price variability is widespread, with 519 unique prices for the same asset.
- 92% of surveyed hospitals did not have procedures to monitor vendor performance vs. contract terms consistently.
“We are bringing our evidence-based, data-driven, and technology-enabled methodology to the $10B acute-care medical equipment service contract market,” said Philip Settimi, MD, President and CEO, PartsSource. “PartsSource Repair and Service Agreements offer cost, quality, and efficiency advantages, a much-needed service contract solution for healthcare providers.”
The study concludes that many systems need more data to make evidence-based decisions to manage service contracts for improved cost, quality and productivity. PartsSource Repair and Service Agreements are transforming how health systems operate with five principles to resolve the issues uncovered by the study and bring better service to healthcare systems.
- Enterprise contract rationalization and workflow: PartsSource leverages its proprietary data to rationalize the right contracts into a single managed service agreement that offers one enterprise workflow and unmatched flexibility and savings.
- Formulary-driven standardized service management: PartsSource delivers end-to-end management of every service event with preferred vendor formulary rules.
- Nationally benchmarked vendor performance monitoring Transparent insights including peer-reviewed ratings of service technicians and the opportunity to provide feedback after every event, driving continuous improvement of the network quality and experience.
- Community buying power: As part of a larger community negotiating with service providers, clients can enjoy up to 20% immediate savings plus an opportunity to identify additional savings by utilizing PartsSource’s high-quality, evidence-based service network.
- Digitally powered experience: Digitized workflows transform the process for HTM teams. Timely notifications inform critical repair status, while data, generated by every event, powers visual analytics for healthcare leaders to visualize service spend, performance and savings opportunities.
“The flexibility PartsSource Repair and Service Agreements offered us was a game changer. By meeting us where we are, PartsSource helped remove the risk of taking equipment previously off-contract onto a new agreement, while their proactive recommendations for highly qualified alternatives from their network are helping us manage our service spend,” said Jay Olson, System Director, Biomedical Services, Marshfield Clinic Health System.
For more information on PartsSource Repair and Service Agreements, visit https://corporate.partssource.com/solution/repair-and-service-agreements/.
About PartsSource®: Ensuring Healthcare is Always On®
PartsSource’s proprietary procurement platform eliminates friction from the healthcare supply chain by delivering evidence‐based decision support for healthcare technology management (HTM). Through integrated workflows and standardized processes, PartsSource empowers HTM teams to make data-driven decisions, manage long‐tail spend, increase equipment uptime, and track the quality of clinical assets. To learn more about the value of proactively managing the lifecycle of clinical resources, visit PartsSource.com.
The PartsSource Logo, Ensuring Healthcare is Always On, and Precision Procurement are registered trademarks of PartsSource, Inc.
Senior Director, Corporate Communications