DECEMBER 202319negotiations, leading to suboptimal deals. Our facility has centralized contract management under clinical engineering by employing an expert who benchmarks contracts nationwide, securing better prices and stopping unnecessary payments. Visibility and expert management of contracts are crucial issues faced by the healthcare industry.What is your strategy when it comes to leading your team towards a holistic contract management?My leadership strategy for holistic contract management involved gaining buy-in from all sections and instilling trust in our Strategic Source Analyst's abilities. It took around six to 12 months to establish this trust and encourage teams to utilize her expertise. My role included promoting her services and ensuring she was involved in new equipment orders and contract expirations. As the results showed substantial savings, the momentum grew, and now we are sought out for various contracts, even those beyond medical equipment, which we direct to the appropriate departments. Our success speaks for itself, and having a dedicated contract expert has proven to be a tremendous advantage.What according to you does the future really holds for contract management in the medical equipment space?In the medical equipment space, the future of contract management lies in centralization and integration. Hospitals should establish a dedicated office responsible for reviewing and negotiating medical equipment contracts, closely collaborating with clinical engineering. This synergy will ensure efficient updates in the CMMS, preventing accidental breaches of contracts.Building trust with customers is crucial to successfully negotiate contracts and achieve significant cost savings. Shifting from initial savings to sustained cost avoidance is the next phase. By leveraging the collective spend on multiple contracts, our Strategic Source Analyst can pursue better deals through negotiations. This transition from savings to cost avoidance will lead to substantial benefits in the long run, enabling us to optimize expenses and streamline contract management effectively.Is there a piece of advice that you would like to share with your peers in the market today? My advice to peers in the market is to begin by assessing the spending under contracts for each section and identify opportunities for consolidation. It's essential to advocate for a dedicated strategic source analyst or contracting specialist who reports directly to clinical engineering. This expert can address contracting issues more effectively. Digging into contract spend, negotiation frequency, and responsible parties will reveal areas for potential cost savings. Leveraging the collective spend with vendors can lead to substantial discounts and cost avoidance, even from simple inquiries. Taking these steps can help combat industry changes and transformations successfully.
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