Executive Summary
Value Partnerships™ are the enduring relationships that Siemens Healthineers
forges with customers in order to optimize operations, expand capabilities,
and advance innovation within healthcare enterprises. One of the areas
where optimization can transform care delivery and improve patient
experience is in the holistic management of medical technology.
This whitepaper gives readers an overview of the ways Value Partnerships
can enable effective and efficient technology management for healthcare
providers.
Medical technology has become the ‘central nervous system’ of healthcare,
informing and guiding the majority of care-related decisions. Machine
learning and other AI technologies will continue to expand the importance
and effectiveness of medical technology. This more powerful and complex
nervous system requires expert technology management to keep it running
at full potential.
Value Partnerships provide effective, proactive technology management
services that help healthcare providers deliver improved patient satisfaction,
best-in-class clinical outcomes and optimized return on technology
investments. From procurement to maintenance, from operational efficiency
to financing, Value Partnerships enable improved financial, operational,
and clinical outcomes for healthcare provider organizations.
1. Medical technology: The central nervous system of healthcare
Nearly every patient pathway is touched by medical technology. Imaging,
diagnostics, and other medical technologies have become the central
nervous system of healthcare. Medical technology has opened the door
to a more precise, personalized approach to care that puts the patient
at its center.
But healthcare providers have to carefully manage their medical technology
assets to get the most out of them. This is a complex task with clinical and
financial implications across the healthcare enterprise. Moreover, it’s a task
that is getting more complex with time as powerful new technologies, like
machine learning, add to the capabilities of the medical technology fleet.
Capital technology purchases are the largest investments in a typical budget
cycle. Without clear insight into the return on technology investment,
provider organizations run the risk of a mismatch between capacity of, and
demand for, critical medical technologies.
Vendor-provided technology management solutions are often described
in marketing literature in terms of ‘risk transfer’, ‘performance guarantees’,
‘access to latest technology’ and so on. However, this language doesn’t get to
the heart of what makes asset management work for provider organizations,
or to the value of a robust technology management solution to providers and
the patients they serve.
2. The technology management value chain
It is important to understand the phases of the medical technology management cycle. This makes it easier to define
best practices in and opportunities for improvement in technology management.
Medical technology investment planning is a crucial first
step. These investments have to satisfy current and
anticipated future clinical and operational needs. Then a
competitive procurement process results in asset(s) being
installed and commissioned in the facility, together with
initial user training.
But this is only the beginning of the value chain. The
longest step in the chain, and the step where a lasting
partnership is of critical importance, is technology
maintenance and performance monitoring. This phase
continues for as long as the asset is in use. The focus
should be on continually improving asset performance.
At the end of an asset’s life, an informed decision is made
whether to upgrade, replace or retire; outmoded medical
technology assets are recycled.
Throughout the cycle, every medical technology asset
or equipment fleet is supported by an IT platform, such
as the computerized maintenance monitoring system
(CMMS). Technology management partners also provide
program management and advisory work at every step
of the value chain.
Healthcare institutions that manage their own medical
technology might overlook important advisory and
management functions, because they lack in-house
expertise in these specialties. These functions are critical
for efficiency and value because they connect the value
chain phases together into a cohesive and continuous
program, and ensure they are an integral part of the
healthcare provider operation.
3. Best practices in technology management for healthcare providers
Best practices in technology management go far beyond simple hardware and software maintenance
(Commission, 2017). They begin before the purchase agreement is signed, and continue throughout the medical
technology lifecycle.
Making informed, optimal purchasing decisions
Improved visibility of current and future capacity needs
can help providers maximize their capital budgets.
A recent whitepaper from Frost and Sullivan found that
healthcare facilities are over-equipped by 20-30% on
average (Sullivan). One way to realize savings is
to manage technology investment strategically at the
enterprise level, rather than taking a departmental
approach. Departmental budget structures may lead
some physicians to over-purchase in order to preserve
current funding levels. A trusted technology
management partner can offer guidance that will benefit
the healthcare provider’s financial health.
Keeping track of assets
A real-time location system (RTLS) can help healthcare
provider organizations keep track of their medical
technology. Given the scope of healthcare enterprises,
many provider organizations struggle to keep track of
which assets are available at any one time and where
they’re located. Effective asset tracking can improve
efficiency and quality of care - learning from the
industrial and consumer goods industries and bringing
technologies such as RTLS to the healthcare sector.
Driving continuous improvement
Effective technology management partnerships provide
ongoing monitoring and optimization of processes and
performance to ensure that providers’ technology fleets
are a good match to capacity needs. These partnerships
help providers anticipate changing needs, rather than
react to new conditions.
Healthcare providers are focused on patient care,
and generally lack the time and expertise to focus on
workflow improvements which can improve both the
quality of care and the overall patient experience. LEAN
processes are a way to optimize operations and cut waste.
In general terms, LEAN methodology assesses a process,
identifies the steps in the process that produce value,
and reduces or eliminates any steps that don’t add value.
Healthcare providers and medical technology vendors can
partner in using LEAN methodology to enact rapid and
sustainable process improvements in healthcare.
Getting the most out of digital technology management
A technology management IT platform is vital to the
clinical and financial performance of a busy healthcare
provider. Real-time dashboards alert service teams and
healthcare management to take action before issues
arise, and display success against service performance
indicators. Remote monitoring of assets also enables
preventive action and rapid responses as needed. Smart
digitalization makes technology management simple,
efficient and cost effective.
Analyzing technology performance and utilization
Insight into technology performance enables effective
operational decision-making and, in turn, improved
service delivery. For example, if there is high demand for
CT scans from the ED, an under-utilized CT scanner in the
radiology department can be made available, provided a
workflow is in place to enable its use. Real-time asset
performance information, backed up with regular reports
that highlight trends, maintenance needs, and suggested
improvement actions, enable efficient decision-making
and significant savings.
Unlocking staff potential with training and education
An effective clinical and technology training program is
vital to healthcare enterprises. An IT platform to manage
and monitor training for clinical staff and in-house
technical/ medical engineering staff is a best practice for
a modern provider organization.
Having a customized, holistic, monitored training
program in place is essential as user errors cause large
hidden costs within many healthcare provider
organizations (Kluver). Repeated procedures, incorrect
diagnoses and inappropriate treatment all compromise
the quality of care and strain healthcare institutions’
finances. IT-enabled education programs helps providers
avoid errors and improve quality and efficiency of care.
4. Value Partnerships:
The Siemens Healthineers approach
to technology management
Value Partnerships are enduring relationships between
Siemens Healthineers and healthcare providers. They
offer a comprehensive range of services, strategies,
and solutions to optimize current operations, expand
capabilities, and prepare for the future of the healthcare
enterprise. While they typically span 7-15 years, the
length of engagement is determined by the provider
organization’s needs.
Technology management is a vital service within
the Value Partnerships framework. Providers and
Siemens Healthineers collaborate to develop a
partnership around technology management that
leverages the strengths and fills the gaps in
the provider’s existing technology management
infrastructure.
Partnership Design
The first phase in establishing a Value Partnership around
technology management is the partnership design
exercise. This establishes shared goals and key performance indicators, as well as technology and service
requirements. This initial engagement is the foundation
of an effective Value Partnership between a healthcare
provider organization and Siemens Healthineers.
The partnership design comprises five stages shown
in Figure 2.
Stage 1:Data collection and current state analysis.
Establishes baseline asset/fleet performance
against international benchmarks, bestpractices and future demand.
Stage 2:Interviews and on-site visits.
Structured talks with key stakeholders identify
the provider’s strategic focus, clinical development initiatives and existing pain points.
Stage 3: Gap analysis.
A deep dive into asset use uncovers gaps
between current clinical needs, benchmarks
and medical technology operational capability/
capacity. Filling these gaps is a critical nearterm partnership goal.
Stage 4: Future state analysis.
A projection of procedure volumes, informed
by thorough research and expertise, determines
future asset operational requirements.
Stage 5:Conclusion.
The partners finalize longer-term partnership
goals in a multi-vendor technology
management roadmap that will ensure success.
A Value Partnership around technology management brings together the right blend of competencies under
a single partnership contract, unlocking significant operational efficiencies (see figure 3). This enables a reduction
in technology management costs and more efficient use of facilities and staff. This leads to greater staff satisfaction,
better clinical outcomes and a more positive patient experience.
For a deeper outline of the value drivers behind each step in the value chain of technology management and
how a partnerships and the embedded support systems/functions drive performance, see the Appendix
5. Program management for a successful partnership
Following completion of partnership design,
Siemens Healthineers employs a comprehensive set of
program management processes to ensure that the full
benefits of the technology management partnership
are realized.
The Value Partnerships technology management process
framework and governance structure enable partners
and other stakeholders (e.g. suppliers) to work efficiently and effectively in a complex change environment.
The tailored blend of service elements – including
management processes, decision support, efficient
maintenance workflows, and more – helps maximize
the value of the delivered by the partnership.
Figure 4 outlines the sub-components of our technology
management programs.
Critical activities like partnership design take place in the transition phase, which sets the stage for the enduring
operational phase. The partnership delivers on its goals throughout the operational phase, usually for a term
of 7-15 years. Joint program management and governance keep the partnership focused on creating value throughout
the operational period.
6. Partnerships for financial stability
A clear benefit of technology management through a Value Partnership is medical technology cost stability over the
life of the contract. This provides cash control advantages and budgetary predictability for healthcare provider CFOs.
Payment models fall into 3 broad categories, described in Figure 5.
Milestone and unitary payments are the most common models for technology management programs. The pay per
use model is challenging to build and relatively rare (except in laboratory technology management deals, owing
to larger variable costs in diagnostic labs). Siemens Healthineers works with its partners to develop contracts and
payment models that best support the goal of maximizing technology availability.
Value Partnerships might also contain risk/benefit sharing arrangements. Shared investment in the success of
the healthcare venture can improve financial outcomes, quality of care, and patient experience.
7. Efficient medical technology management: Five takeaways
This white paper has sought to demonstrate that:
- A robust medical technology management program is a critical component of a successful healthcare enterprise.
- This necessitates a strategic, forward-looking approach to technology planning and spending.
- Partnerships with a technology provider enable sustainable success in technology management through long-term commitments and deep understanding of every step of the technology management value chain.
- These partnerships enables both parties to work toward common goals – sharing risks and benefits if appropriate.
- Effective partnerships can transform care delivery by increasing efficiency, reducing costs, and improving patient care
Technology management from Siemens Healthineers is built on a bespoke Value Partnership that
deploys the resources, tools and governance needed to monitor and improve asset performance
at every step in the value chain.
What makes Siemens Healthineers different?
- 170 years’ industry experience as a leader in technology, service and business innovation
- Unique partnership-driven approach to technology management
- Operational excellence dedicated to continuous improvement
- Commitment to collaboration, shared vision and patient-centric goals
- Successful technology management partnerships built over 25 years in 14 countries on 5 continents
The Siemens Healthineers technology management approach is tried and tested. As the role
of medical technology continues to evolve, we look forward to developing this collaborative
business model further with healthcare providers all over the world.
To learn more about Value Partnerships around technology managent click here
or go to: siemens-healthineers.com/value-partnerships
Bibliography
Commission, W. A. (2017). Retrieved from Management of medical equipment:
https://audit.wa.gov.au/wp-content/uploads/2017/05/summary2017_08-MedicalEquipment.pdf
Kluver, W. (n.d.). Retrieved from Economics of healthcare quality and medical errors:
http://wolterskluwerlb.com/health/resource-center/articles/2012/10/economics-health-care-quality-and-medical-errors
Sullivan, F. &. (n.d.). Retrieved from Reduce your cost whilst improving patient care & satisfaction –
inefficient use of mobile assets is costing Australian hospitals more than $60M a year:
http://www3.gehealthcare.com.au/~/media/downloads/anz/solutions/ge%20healthcare%20and%20fs%20%20
mobile%20asset%20management%20white%20paper.pdf?Parent=%7BDA74C9C8-0FAE-46C5-8581-
A34CC7359E09%7D
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Improving Medical Technology Management Through Value Partnerships
