News

Total Cost of Ownership:

The Role of Clinical Engineering

By: Dale Hockel and Michael Kintner

Published Monday, June 02, 2014
Heathcare Financial Management Association

As hospitals continue to look for opportunities to reduce costs beyond low-hanging fruit, there are subtle areas that should be considered–including clinical engineering spend and its impact on total ownership costs for capital equipment. Hospital leaders should take the time to understand their organization’s total clinical engineering spend to avoid the risks of escalating expenses in hidden areas and missing out on significant and sustainable opportunities for savings.

The costs that constitute a healthcare organization’s total clinical engineering spend may include purchase price, installation, financing (including leasing or renting), utilities, upgrades, training, and disposal. To gain a clear picture of clinical engineering spend, hospital leaders should perform a total cost of ownership (TCO) analysis, calculating all costs incurred over the life of each asset.

Understanding Clinical Engineering Spend

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Total Cost of Ownership Calculator

If you want to assess your clinical engineering operation’s influence on total cost of ownership, use this quick (approximately two-minute) online calculator. The calculator provides you the opportunity to gain a better understanding of your clinical engineering cost-saving initiatives and offers solutions to enhance your revenue stream.

CLICK HERE to use the online calculator.