Equipment Maintenance Solutions

The customized Equipment Maintenance Management Programs from Dubraski & Associates help hospitals to significantly reduce repair and maintenance expenditures without limiting vendor choice. The program consolidates all original equipment manufacturer and third-party service contracts into one comprehensive program. By paying only for the service and repairs necessary, hospitals can realize immediate and sustainable savings on an existing expense.

How It Works

  • As existing service contracts are canceled or expire, equipment is added to the Equipment Maintenance Management program.
  • Hospitals use their preferred vendors for repairs and maintenance and pay on a time and materials basis. Then, they report those expenses to the program administrator.
  • The program can be structured as either a first-dollar, guaranteed cost model or an aggregate deductible model. In both structures, the program cost is capped to provide immediate savings, while greater savings may be available through management of expenses in the aggregate deductible model.

Sample equipment maintenance management savings

Example 1 – First-Dollar, Guaranteed Cost Model
Current Annual Cost of all Service Contracts $5,000,000
Equipment Maintenance Program
Program contract (fixed cost) $4,250,000
Labor, travel, parts, preventative and corrective maintenance Included
Total Cost: $4,250,000
Program Savings* (15%) $750,000
Example 2 – Aggregate Deductible Model
Current Annual Cost of all Service Contracts $5,000,000
Equipment Maintenance Program
Program contract (fixed cost) $1,250,000
Program aggregate deductible $3,000,000
Labor, travel, parts, preventative and corrective maintenance Included
Total Cost: $4,250,000
Minimum Program Savings* (15%) $750,000
Potential Additional Savings
Program aggregate deductible $3,000,000
Actual repair/maintenance costs $2,500,000
Additional savings* $500,000
Total program savings* (25%) $1,250,000

*Actual savings will vary by organization and are not guaranteed.

Effective management of costs in a deductible program structure could result in total savings in excess of 30 percent.

Program Benefits

Savings

Reduces equipment maintenance expenses by a minimum of 10-20 percent.

Simple Administration

One master contract with one renewal date.

Choice of Service Vendor

Maintain the flexibility to choose any vendor to service equipment, including reimbursement for in-house labor.

Resources

Access to alternatives sources for parts and vendors, as well as access to online systems that track all equipment service events.

Transparency

Tracks all repair events so you can see exactly how much you are spending on service for each piece of equipment.

Financial Security

Program capitates maintenance budget. Contracts are insured through financially secure insurance companies.

To learn more about equipment maintenance offerings at Dubraski & Associates, contact us.

1.877.792.4640