A Penny Here, A Dollar There

Jan. 3, 2012
During a recent conversation involving a vendor-client relationship, where the client is considering consolidation of image archives into an enterprise solution, the vendor raised a very interesting point. In considering the total cost of ownership, how often is the impact of service maintenance agreements overlooked?

During a recent conversation involving a vendor-client relationship, where the client is considering consolidation of image archives into an enterprise solution, the vendor raised a very interesting point. In considering the total cost of ownership, how often is the impact of service maintenance agreements overlooked?

In this instance, the vendor pointed out that the client is under service contracts with several vendors for image archival devices. Besides the obvious factor of the cost of multiple contracts, there is the administrative cost of managing those multiple contracts.

With the consolidation to an enterprise solution, there are economies of scale from the consolidation of image archives. The result may very well be a reduction in the cost of a service maintenance agreement, from having only a single vendor, and potentially less hardware and software to have under an agreement.

As healthcare comes under increasing pressure to improve the quality of care and utilize technology to reduce cost, considering service maintenance agreements may be a means of cost reduction.

A penny here, and a penny there, and pretty soon you are talking real dollars and cents!

Anyone care to chime in? I am sure there are some good case studies out there and I know the community would like to hear about them.

Sponsored Recommendations

How Digital Co-Pilots for patients help navigate care journeys to lower costs, increase profits, and improve patient outcomes

Discover how digital care journey platforms act as 'co-pilots' for patients, improving outcomes and reducing costs, while boosting profitability and patient satisfaction in this...

5 Strategies to Enhance Population Health with the ACG System

Explore five key ACG System features designed to amplify your population health program. Learn how to apply insights for targeted, effective care, improve overall health outcomes...

A 4-step plan for denial prevention

Denial prevention is a top priority in today’s revenue cycle. It’s also one area where most organizations fall behind. The good news? The technology and tactics to prevent denials...

Healthcare Industry Predictions 2024 and Beyond

The next five years are all about mastering generative AI — is the healthcare industry ready?