Healthcare providers are reassessing how they buy major equipment as rising costs and supply-chain uncertainty put greater pressure on budgets. Instead of choosing primarily on purchase price, organisations are weighing maintenance, utilisation, interoperability and the value a device is expected to deliver over its working life.
Bill Muich, senior director of equipment sales and service at Concordance Healthcare Solutions, told Repertoire that capital purchasing has become mor...
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e strategic and more collaborative. Clinical, finance, operations, supply-chain and IT teams are increasingly involved before decisions are made, with technology choices tested against organisational needs as well as technical requirements.
That approach is consistent with guidance from the Association for Health Care Resource & Materials Management, which advises bringing purchasing and supply-chain specialists into the process early and assessing the full cost of ownership. The calculation can include acquisition and installation, contractual terms, specifications and whether the equipment is suitable for its intended use, not simply the quoted price.
Muich argues that organisations should set out the clinical, operational and financial outcomes they expect before committing funds, then check performance after installation. The World Health Organization’s guidance on assessing medical devices similarly frames investment as a multidisciplinary decision, taking account of clinical and economic evidence alongside ethical and social considerations. Its central principle is that technology should be assessed for its likely contribution to patient outcomes and effective use of resources, rather than adopted simply because it is new.
The wider assessment matters as equipment can introduce costs beyond its initial purchase, including servicing, training and integration with existing systems. Muich said IT teams are now more likely to be involved in diagnostic-equipment decisions to ensure devices can connect with electronic medical records. A purchase that fails to fit clinical workflows or organisational infrastructure may not deliver the benefits anticipated.
Supply continuity has also become a lasting concern since the pandemic exposed vulnerabilities across healthcare supply chains. McKinsey has identified better inventory visibility and the use of multiple suppliers for selected products as potential ways to reduce risk, while stressing that preparedness must be balanced against financial constraints and efficiency. The OECD has likewise described medical supply networks as complex and international, involving multiple suppliers, components and production sites. Disruptions can affect diagnosis and treatment as well as raise costs, making co-ordinated action important.
Muich said health systems are paying closer attention to supplier diversification, inventory information and forward planning. For equipment, he added, buyers may consider where products are manufactured and whether replacement parts are readily available. These factors can help organisations judge the risk of an investment, although resilience measures also have to be weighed against budget limits.
Environmental considerations are increasingly part of procurement discussions, alongside quality and clinical performance. The United Nations Development Programme’s sustainable-procurement guidance recommends considering environmental, social and economic effects across a product’s life, while adapting criteria to local markets and circumstances. In healthcare, that can mean examining packaging, waste, transport and product lifespan, but environmental measures should not be assumed to produce savings in every case.
The distinction between a supplier and a strategic partner, Muich said, lies in the contribution beyond delivering equipment: expertise, transparency, communication and recommendations grounded in an organisation’s needs. He described effective partnerships as involving stakeholders across departments and focusing on measurable clinical, operational and financial results.
Muich has more than 30 years’ experience in medical equipment, healthcare distribution and supply-chain solutions. At Concordance, he leads equipment sales and service initiatives and partnerships supporting healthcare providers across the United States.
Source: Noah Wire Services
