Community Hospital, a rural 25-bed critical access hospital, provides advanced care to approximately 30,000 people in southwest Nebraska and northwest Kansas. The facility provides surgery care, rehabilitation programs, emergency services, and obstetrics, with more than 30 visiting specialists providing care.
Like most critical access hospitals, Community funds a level of technology and quality of care comparable to larger facilities, but its utilization of these technologies, and the subsequent return on investment, are much lower. Each capital budget season, Jon Reiners, director of materials management, struggles to identify every dollar of possible savings across the hospital’s entire capital spend, then enters into tough negotiations with suppliers.
In its most recent budget season, Community incorporated ECRI Institute’s SELECTplus™ advisory service into its capital budgeting and purchasing processes, a move that yielded some attention-getting results, including:
- Benchmarking of pricing for replacement video endoscopy equipment down to the line-item level, based on configuration, resulting in a $22,000 reduction from the supplier’s original quote
- Switching to a less expensive, more suitable physiologic monitoring technology, using a SELECTplus side-by-side comparative analysis, and saving an additional $43,000
- Using the new, online Capital Budget Tool to create a clean, standardized equipment list
“The SELECTplus Capital Budget Tool is now Community’s primary source of information for budgetary pricing and clinical research for equipment at budget time,” says Reiners. “The tool is very user friendly, and I believe that implementing it into our budgeting process will further the cause of value analysis within our facility.”
In one year, Community Hospital realized $197,000 in cost reductions to its $1.5 million budget.
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