MD Buyline Provides Expertise Across the Healthcare Spectrum

By Tiffany Wessler, MD Buyline Marketing Analyst

With MD Buyline’s ever-expanding database of both medical capital and healthcare IT products, it’s no wonder that more than 35,000 healthcare providers at 3,200-plus facilities turn to MD Buyline first for the latest, most comprehensive information on medical technologies, especially with the growing push to adopt electronic medical records and other IT systems.

“Logging into the MD Buyline site makes it easy for me to get an idea of functions, features, prices, and industry trends even before the sales types begin to call,” said Duane Hart, Imaging Engineering Service Manager at Ohio State University Hospitals.

For years hospitals have benefitted not only from extensive resources on clinical equipment, but custom analyses and in-depth data regarding IT purchases. Information on IT is a crucial element as electronic medical records and enterprise-wide information systems become the industry standard rather than functions of only the most advanced and connected research facilities; MD Buyline members are learning to negotiate the ins and outs of a complicated and often secretive industry.

According to MD Buyline Clinical Analyst Tom Watson, the distinction between capital equipment and healthcare IT is becoming increasingly ambiguous.

“I see an increasing number of deals that blur the line between traditional medical capital and IT medical technology,” he said. “We will get proposals that include diagnostic and therapeutic imaging or monitoring modalities that have a sizeable component related to specific information systems. More healthcare providers are looking for the degree of integration and interface these systems have with planned or existing IT solutions.”

Watson said the focus is shifting from the purchase of one technology to overall improvements in workflow and patient care.

“In my discussions with healthcare providers, their perspectives on technology are no longer focused on a single device and how it meets their needs,” he said. “They are shifting their thought processes to the entire workflow and how the modality itself integrates into the overall solution. They are also interested in reducing the complexity of managing the patient encounter rather than how a specific piece of equipment works. Medical technology management and medical IT management are quickly developing a symbiotic relationship that will make it even more critical to consider them as a whole rather than as separate entities.”

Healthcare facilities will spend a projected $40 billion on IT in 2008, much of which will come as providers play “catch up” to their peers.

“The fact is most providers are still in the process of implementing EMR systems. It is estimated that only 4 percent of physicians who provide direct patient care have a fully implemented EMR system,” said MD Buyline emerging technology expert James Laskaris . “Because of this, IT is expected to grow approximately 13 percent per year for the next 10 years, making it one of the fastest growing segments in healthcare.”

While the eventual savings from cost efficiencies provided by electronic medical records and other IT technologies are substantial, the initial purchase, as well as the price of upkeep and service, is also immense.

It is not uncommon for installation, training, and custom interface development costs to exceed the cost of the software solution. This can be an extremely unpredictable expense. Providers are turning to companies like MD Buyline to access data and pricing on EMRs and other IT products and the related costs and considerations involved with purchases thereof. Full analyses of service contracts, training, implementation and other hidden, yet negotiable, expenses have enabled MD Buyline members to save thousands of dollars on their IT purchases.

“Our analyses help identify areas to monitor closely, as well as provide guidelines that represent real-world examples of how other facilities have controlled and sometimes reduced these costs,” Watson said.

Healthcare IT support, including ongoing software upgrades and enhancements, is a significant ongoing expense. Whereas medical capital support is often 4 to 10 percent of the system’s list price each year, healthcare IT software support quotes typically run at 18 to 24 percent of the software’s list price.

Comparing a $1,000,000 piece of capital equipment to a $1,000,000 software solution, the annual service cost for the first may range from $40,000 to $100,000, but annual support for the software solution may cost $180,000 to $240,000.

“In many instances our database may show the potential to reduce the software support rate to 12 to 15 percent of the software cost or $120,000 to $150,000,” Watson said. “On an annual basis, this can add up to savings in the $30,000 to $90,000 range. Without the benefit of a user-driven, user-supported database like that available to MD Buyline members, IT managers and directors must simply negotiate blindly or not at all, potentially leaving huge money on the table.”

About MD Buyline: For 25 years, MD Buyline has leveled the playing field for hospitals and medical technology vendors. MD Buyline members have unlimited online access to the tools and services that empower them to make sound technology and financial decisions. Executives, Clinical Managers, Materials, Purchasing, and Engineering personnel can quickly download database reports on medical capital and informatics purchases, discounts, user feedback and vendors. http://www.mdbuyline.com

For more information about how your company can be part of our Health IT Resource Center, please contact Publisher Catherine Schwartz at 877-690-1871 or via email.