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Purchasing: a necessary partnership.

According to a recent survey published in Hospital Purchasing News, a Mcknight Medical Communications publication, the average hospital in the United States spent $16.7 million, not including equipment purchases, in 1994. This represents an increase of 41.6 percent over the amount spent in 1990, $11.8 million. The hospital's objective of having year-end revenues exceed expenses largely depends on the ability to purchase materiel at the best price, not necessarily the lowest cost. This goal can be achieved by partnering with suppliers and customers (hospital administrative and surgical staff, as well as patients) through open communication and trust. Reducing costs by a percent on the dollar could return $167,000 to the average hospital. Partnering can assist in achieving these savings!

Commerce↗

Does the in-hospital BMET face obsolescence?

Changes in electronic technology, increased BMET manpower costs, and changes in hospital purchasing procedures are reducing the hospital's need for an in-hospital, bench technician. A new technologist will probably evolve. As repairs decline, greater emphasis will be placed on device-operator education, the device-patient interface, performance assurance and safety inspections, and coordination of device safety and functional problems. In-hospital BMET's should recognize these changes and prepare themselves for this new role. Certification commissions must establish curriculum and procedural requirements that are responsive to rapid technological change.

Biomedical Engineering↗

A transaction costs analysis of changing contractual relations in the English NHS.

The English National Health Service has replaced locally negotiated block contracting arrangements with a system of national prices to pay for hospital activity. This paper applies a transaction costs approach to quantify and analyse the nature of how contracting costs have changed as a consequence. Data collection was based on semi-structured interviews with key stakeholders from hospitals and Primary Care Trusts, which purchase hospital services. Replacing block contracting with activity based funding has led to lower costs of price negotiation, but these are outweighed by higher costs associated with volume control, of data collection, contract monitoring, and contract enforcement. There was consensus that the new contractual arrangements were preferable, but the benefits will have to be demonstrated formally in future.

Contracts↗

A study of added costs of laparoscopic cholecystectomy based on surgery preference cards.

Hospitals are pressured to cut expenses to generate a profit, but many current surgical procedures still fall below a "break-even" point. Laparoscopic cholecystectomy is a high-volume surgical procedure that can be profitable for hospitals if costs are reduced and complications minimized. Our limited liability corporation of independent surgical specialists examined the preference cards of ten surgeons who performed laparoscopic cholecystectomies in August 2000. We wished to determine whether these surgeons differed in their use of disposable equipment and devices for the same surgical procedure. All of the disposable equipment and devices studied were assigned a price by the hospital purchasing department that was representative of the hospital costs and not what was billed to the patient. The sum total of disposable instruments for a single operative case in which laparoscopic cholecystectomy was performed ranged from $92 to $637 (mean $333) depending on the preference of the surgeon. Our study points out the differences in expenses between surgeons. Maintaining this type of expense tracking can apply to other procedures and is a good place to start a surgeon-led and hospital-based cost-saving initiative.

Cholecystectomy, Laparoscopic↗

Consignment provides alternative to stockless.

Purchasing for hospitals unable or not inclined to convert to stockless inventory, consignment can offer some of the same savings on inventory costs without imposing extra computer and tracking needs on materials management.

Evaluation Studies as Topic↗