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Multi-Vendor Case Study – Mercy HospitalGE Healthcare
The radiology department at Mercy Hospital in Portland, Maine,
performs nearly 100,000 imaging exams per year. Hospital
administration clearly understands the need to keep the imaging
equipment available and at peak performance on a 24/7 basis.
For years, the logical approach seemed to be reliance on
individual service agreements from the original equipment
manufacturers for the hospital’s CT, MR, X-ray, mammography,
ultrasound and other imaging equipment. However, over time, the
inherent complexity and high cost of this approach led the decision
makers at Mercy to consider an asset management solution from GE
Healthcare.
Today, Manager of Radiology Steve Welsch, RRT, and his team rely
on GE Healthcare for service on nearly all brands of imaging
equipment under a multi-vendor service agreement, now entering its
fourth year. The agreement has helped reduce service costs, made it
easier for staff to contact the appropriate service engi-neers, and
improved the tracking of planned mainte-nance (PM) tasks for Joint
Commission compliance.
The agreement also includes proactive remote monitoring of two
mission-critical CT systems that has helped the department avoid
unplanned downtime by detecting an impending tube failure, enabling
scheduled replacement.
A multi-vendor service agreement helps Mercy Hospital control
costs and streamline operations on a full range of imaging
equipment from several manufacturers
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Streamlining serviceMercy offers imaging services at its two
hospital campuses in Portland proper and four of its other
locations in suburban communities. The equipment inventory includes
two GE LightSpeed CT systems (32- and 64-slice), three GE digital
radiography rooms, and two GE bone densitometry systems, along with
two 1.5T MR systems (Siemens and Philips), five mammography rooms
(Hologic), a variety of ultrasound units (mostly Philips), Philips
computed radiography rooms and portable X-ray systems, Philips and
GE C-arms, and Siemens nuclear cameras.
A few years ago, hospital leadership directed the materials
management staff to look at ways to reduce costs. Collaborating
with Steve Welsch, they explored savings alternatives in imaging
device service. They investigated multi-vendor agreements with
equipment manufacturers and ultimately chose GE Healthcare.
GE now handles service on nearly all of the imaging equipment at
Mercy and also services associated equipment like uninterruptible
power supplies, injectors, and the GE Centricity PACS. GE is also
responsible for service on about 50 items of biomedical
equipment.
Besides the very important cost savings, calculated at
approximately 15% in 2010,* Mr. Welsch and his staff now find it
much easier to access service personnel. “When dealing with
individual vendors, we had multiple numbers to call for service,
depending on the type of equipment and which OEM,” says Mr. Welsch.
“There was a different number for CT, ultrasound, portable X-ray,
bone densitometry. It has been helpful dealing with only one
service vendor for the vast majority of our needs.”
Easy transitionThe changeover to the multi-vendor agreement
proceed-ed smoothly. A few devices had to wait until manufacturer
warranties or existing service contracts expired. Mobile devices
were stickered with GE identification numbers. “Every piece of
equipment now has an assigned number from GE,” says Mr. Welsch.
“When we call and give that number, GE immediately knows its
location, its age, and its service history so that the field
engineer comes in fully prepared.”
Brian Murphy, Director of Supply Chain at Mercy, notes that
having individual OEM contracts made the financial side of device
service challenging. “We are now in more of a fixed-cost scenario,”
he says. “Compared to the way we were working before, this
agreement is very simple to follow and manage.”
Mr. Welsch characterizes his relationship with GE service
engineers as “excellent to outstanding.” While not resident on
site, they typically communicate back to the department within 30
minutes and check in with the Mercy team by phone if response will
take longer, he notes.
“Usually when they arrive, they already know what is happening
through their online diagnostics or through the symptoms we have
described,” Mr. Welsch says. "Most of the time, their diagnosis is
right on target and the repair is completed quickly.”
* The cost savings approximation herein is presented for
informational purposes only, based on GE Healthcare’s past
experiences with its other clients. As each hospital is unique,
your facilities may have other costs, capacities, or other
variables that may not be reflected herein. GE Healthcare does not
warrant, guarantee, or certify that you will see the cost savings
listed herein, and accepts no liability for the consequences of any
actions taken on the basis of these cost savings estimates.
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Being proactiveOn occasion, GE detects issues proactively so
that repairs can be made before failure. The InSite OnWatch online
service monitors machine error codes on the two Light-Speed CTs via
broadband internet. “If the GE online engi-neers see certain codes
that indicate a tube is about to fail, they contact our service
representative, who orders a new tube,” Mr. Welsch says. Then
replacement can be scheduled and unplanned downtime avoided.
“GE can access the non-GE equipment using the same technology,”
Mr. Welsch adds. “This saves a great deal of time and anxiety –
either preventing service issues or helping to resolve the issue
quickly.”
Mercy also takes advantage of the GE iCenter online asset
management tool, which tracks services performed on equipment and
generates a variety of reports that can be used to evaluate service
performance and aid in capital planning. Mercy biomedical engineer
Jeff Cline uses iCenter to monitor PMs and make sure maintenance is
on track.
Building trustMr. Welsch considers communication essential to
the relationship. The multi-vendor agreement breeds famil-iarity
with the service team. “I’ve come to know the GE service people
well,” he says. “Continuity is important. We tend to see the same
people all the time, and that allows us to build rapport and reach
a level of trust in them.”
Both Mr. Welsch and Mr. Murphy meet bi-monthly with the GE
service team leaders for a detailed review of service activity and
financials. GE provides a service dashboard showing uptime
performance, PM compliance, service calls and service delivery
trends, along with de-tailed reports on items such as online
diagnostics, billed overtime, and installed base analysis.
“You cannot monitor performance just once or twice a year,” says
Mr. Welsch. “It has to be more often. It’s a consistent evaluation.
You have to monitor it, and if completed regularly, it doesn’t take
a great deal of time. If we were required to do this with several
vendors, we wouldn’t be able to.”
Mr. Murphy adds, “These reviews are very helpful. We’re able to
raise and address issues openly, and we stay abreast of changes,
such as devices coming off warranty. The sessions help us avoid
surprises and keep the service program on track.”
Multi-vendor service is helping Mercy Hospital deliver on its
promise to provide reliable, high-quality, cost-effective
healthcare for residents of the Portland area.
About Mercy HospitalKnown in its service area as the “Heart of
Healing,” Mercy Hospital in Portland, Maine, is a not-for-profit
160-bed community institution sponsored by the Sisters of Mercy of
the Americas, Regional Community of Portland. Founded in 1918, it
is a member of Catholic Health East, a multi-hospital health system
serving communities in 11 states from Maine to Florida. From two
hospital campuses in Portland and several suburban locations, Mercy
offers the latest technology and highly skilled clinicians and
staff.
* The cost savings approximation herein is presented for
informational purposes only, based on GE Healthcare’s past
experiences with its other clients. As each hospital is unique,
your facilities may have other costs, capacities, or other
variables that may not be reflected herein. GE Healthcare does not
warrant, guarantee, or certify that you will see the cost savings
listed herein, and accepts no liability for the consequences of any
actions taken on the basis of these cost savings estimates.
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