Armed with real data that proves the reliability of the equipment and your performance against service contracts, you have information that encourages the sale of additional contracts. Set fixed prices for all services that are not covered by a maintenance contract. This includes labor costs (including after-hours service), travel expenses, etc. If penalties are agreed for non-performance of the Covered Services, ensure that the terms and amounts are in writing. Device maintenance contracts provide your customers with legal rights and recovery options. Communicate these conditions to the technicians and inform them of any incentives to work as agreed in the contract. As a manufacturer of complex medical devices, you have the reliability and functionality of patient care at the top of your list of priorities. Providing the level of service, updating, and maintenance that medical teams and their patients deserve requires attention to all aspects of the healthcare industry. This includes: To ensure that the equipment you provide is operating normally at all times, service and maintenance contracts must be structured effectively. If you can trust your customers and be sure you can provide high-quality services, there are several factors to consider: Our Billing Workbench (BWB) software is an SAP add-on that is fully integrated with your SAP environment. BWB integrates service contract management with all the features medical device manufacturers need: What financial impact does this have on the organization if the covered devices fail? This can lead to the creation of service contracts that are considered insurance coverage for critical equipment.

Read on to learn how to create more efficient service contracts for your medical device product line: You can include 24/7 coverage, replacement, on-site repair, equipment or software upgrades, calibration, preventive maintenance, and more in the coverage details for each applicable unit covered by the service agreement. Be sure to include all contract specifications – overtime rates, travel, training, spare parts, etc. Make sure that all client permissions are written. Customize and generate reports to keep you informed of service, non-compliance, expiration dates, and more. Analyses of your service contract system help you effectively manage contracts and customer relationships. In addition, the Center for Medicare & Medicaid Services (CMS) states that hospitals accredited by the Joint Commission must strictly follow manufacturers` recommendations for PM for certain types of devices, including imaging equipment and medical lasers. Make sure your clients are aware of these mandates that may apply to them. This could provide an incentive to purchase or renew maintenance contracts. As the contract termination date approaches, your contract management team can be notified to begin negotiations on new agreements or contract renewals. If the complaints are due or missed, the management can be alerted so that the right steps can be taken to resolve the issues. The initial costs of the equipment represent only a part of the total cost of the medical equipment. When negotiating the purchase of healthcare equipment, emphasize the value of your service contract offerings, including any claims such as on-site and on-depot repair service, replacement, calibration, software and mechanical upgrades, and more.

Managing medical device service contracts plays an important role in ensuring that technical equipment is available and usable when your customers need it. Many manufacturers include termination fees in service contracts. Especially in the case of long-term contracts, terminations reduce profitability, so set the costs incurred accordingly. Auto-renewal clauses can reduce administrative costs and avoid service interruptions for your customers. Some items, such as imaging equipment, may not be designed for everyday use. There may also be multiple machines in a specific location, which provides more time for maintenance if needed on a single device. You may be able to reduce the number of service calls by scheduling maintenance on multiple computers in a single call, which will allow you to reduce operating costs. With historical data from other contracts for the customer, or even device-based for other customers, you can offer facts to secure the value of your service and maintenance contracts. Time and Material Service may be a viable alternative for some medical devices, but make sure your customers see all the prices. This could make maintenance contracts more attractive. If their equipment warranty or service contract is void, if other parties, e.B non-OEM service technicians, perform repairs or use non-OEM parts, make sure your customers understand this.

Providing 24/7 coverage for your equipment can generate the most revenue, but it can also increase your costs. Consider both aspects of the level of service offered when preparing quotes and pricing your service contracts. Health device manufacturers certainly want to offer the most reliable and technically advanced devices on the market while remaining competitive in the market. For medical facilities, however, continuous operation, long-term availability, and reliability are just as important as the initial investment. Much of this equipment requires a significant capital investment, so long-term returns play an important role in their purchases. For existing contracts, not only track the services you provide, but also indicate what the customer`s cost would have been if the service contracts had not been in effect. This can be a real revelation and a valuable incentive to renew for many customers. You can sell a wide range of medical devices, from beds and monitors to ventilators and imaging devices. Products can be traced back to individual serial numbers and device components. Service contracts can cover a variety of coverage options and rights: Establishing policies and requirements for the creation of service contracts for medical devices has many unique conditions. Market the value and prices of your service contract at the time of device purchase. Communicate that waiting until the end of a warranty to receive prices can result in a significantly higher price, or even twice as expensive.

If contracts need to be renewed, inform your customers as far in advance as possible, even several months before the existing contract expires. This provides more opportunities to complete the contract extension. Security is, of course, at the top of the list. What impact would this have on patient safety if the devices were not available? Hospitals and other medical institutions rely heavily on technical and highly complex equipment to diagnose, treat and monitor patients in their facilities. As a medical device manufacturer, you must maintain an understanding of the needs of healthcare professionals: design service contracts to provide the end user with ultimate security in the services provided. For example, communicate how service contracts relieve hospital staff of difficult or unproductive tasks during the life of the covered equipment: SAP provides manufacturers with sophisticated tools to manage production, supply chain functions, financial applications, order fulfillment, and service. Creating and managing after-sales service contracts is a separate requirement for manufacturers. The implementation of BWB provides an integrated solution to manage your service contracts within your existing SAP framework. .