Multi-Vendor Case Study – Mercy HospitalGE Healthcare

The radiology department at Mercy Hospital in Portland, Maine, performs nearly 100,000 imaging exams per year. Hospital administration clearly understands the need to keep the imaging equipment available and at peak performance on a 24/7 basis.

For years, the logical approach seemed to be reliance on individual service agreements from the original equipment manufacturers for the hospital’s CT, MR, X-ray, mammography, ultrasound and other imaging equipment. However, over time, the inherent complexity and high cost of this approach led the decision makers at Mercy to consider an asset management solution from GE Healthcare.

Today, Manager of Radiology Steve Welsch, RRT, and his team rely on GE Healthcare for service on nearly all brands of imaging equipment under a multi-vendor service agreement, now entering its fourth year. The agreement has helped reduce service costs, made it easier for staff to contact the appropriate service engi-neers, and improved the tracking of planned mainte-nance (PM) tasks for Joint Commission compliance.

The agreement also includes proactive remote monitoring of two mission-critical CT systems that has helped the department avoid unplanned downtime by detecting an impending tube failure, enabling scheduled replacement.

A multi-vendor service agreement helps Mercy Hospital control costs and streamline operations on a full range of imaging equipment from several manufacturers

2

Streamlining serviceMercy offers imaging services at its two hospital campuses in Portland proper and four of its other locations in suburban communities. The equipment inventory includes two GE LightSpeed CT systems (32- and 64-slice), three GE digital radiography rooms, and two GE bone densitometry systems, along with two 1.5T MR systems (Siemens and Philips), five mammography rooms (Hologic), a variety of ultrasound units (mostly Philips), Philips computed radiography rooms and portable X-ray systems, Philips and GE C-arms, and Siemens nuclear cameras.

A few years ago, hospital leadership directed the materials management staff to look at ways to reduce costs. Collaborating with Steve Welsch, they explored savings alternatives in imaging device service. They investigated multi-vendor agreements with equipment manufacturers and ultimately chose GE Healthcare.

GE now handles service on nearly all of the imaging equipment at Mercy and also services associated equipment like uninterruptible power supplies, injectors, and the GE Centricity PACS. GE is also responsible for service on about 50 items of biomedical equipment.

Besides the very important cost savings, calculated at approximately 15% in 2010,* Mr. Welsch and his staff now find it much easier to access service personnel. “When dealing with individual vendors, we had multiple numbers to call for service, depending on the type of equipment and which OEM,” says Mr. Welsch. “There was a different number for CT, ultrasound, portable X-ray, bone densitometry. It has been helpful dealing with only one service vendor for the vast majority of our needs.”

Easy transitionThe changeover to the multi-vendor agreement proceed-ed smoothly. A few devices had to wait until manufacturer warranties or existing service contracts expired. Mobile devices were stickered with GE identification numbers. “Every piece of equipment now has an assigned number from GE,” says Mr. Welsch. “When we call and give that number, GE immediately knows its location, its age, and its service history so that the field engineer comes in fully prepared.”

Brian Murphy, Director of Supply Chain at Mercy, notes that having individual OEM contracts made the financial side of device service challenging. “We are now in more of a fixed-cost scenario,” he says. “Compared to the way we were working before, this agreement is very simple to follow and manage.”

Mr. Welsch characterizes his relationship with GE service engineers as “excellent to outstanding.” While not resident on site, they typically communicate back to the department within 30 minutes and check in with the Mercy team by phone if response will take longer, he notes.

“Usually when they arrive, they already know what is happening through their online diagnostics or through the symptoms we have described,” Mr. Welsch says. "Most of the time, their diagnosis is right on target and the repair is completed quickly.”

* The cost savings approximation herein is presented for informational purposes only, based on GE Healthcare’s past experiences with its other clients. As each hospital is unique, your facilities may have other costs, capacities, or other variables that may not be reflected herein. GE Healthcare does not warrant, guarantee, or certify that you will see the cost savings listed herein, and accepts no liability for the consequences of any actions taken on the basis of these cost savings estimates.

3

Being proactiveOn occasion, GE detects issues proactively so that repairs can be made before failure. The InSite OnWatch online service monitors machine error codes on the two Light-Speed CTs via broadband internet. “If the GE online engi-neers see certain codes that indicate a tube is about to fail, they contact our service representative, who orders a new tube,” Mr. Welsch says. Then replacement can be scheduled and unplanned downtime avoided.

“GE can access the non-GE equipment using the same technology,” Mr. Welsch adds. “This saves a great deal of time and anxiety – either preventing service issues or helping to resolve the issue quickly.”

Mercy also takes advantage of the GE iCenter online asset management tool, which tracks services performed on equipment and generates a variety of reports that can be used to evaluate service performance and aid in capital planning. Mercy biomedical engineer Jeff Cline uses iCenter to monitor PMs and make sure maintenance is on track.

Building trustMr. Welsch considers communication essential to the relationship. The multi-vendor agreement breeds famil-iarity with the service team. “I’ve come to know the GE service people well,” he says. “Continuity is important. We tend to see the same people all the time, and that allows us to build rapport and reach a level of trust in them.”

Both Mr. Welsch and Mr. Murphy meet bi-monthly with the GE service team leaders for a detailed review of service activity and financials. GE provides a service dashboard showing uptime performance, PM compliance, service calls and service delivery trends, along with de-tailed reports on items such as online diagnostics, billed overtime, and installed base analysis.

“You cannot monitor performance just once or twice a year,” says Mr. Welsch. “It has to be more often. It’s a consistent evaluation. You have to monitor it, and if completed regularly, it doesn’t take a great deal of time. If we were required to do this with several vendors, we wouldn’t be able to.”

Mr. Murphy adds, “These reviews are very helpful. We’re able to raise and address issues openly, and we stay abreast of changes, such as devices coming off warranty. The sessions help us avoid surprises and keep the service program on track.”

Multi-vendor service is helping Mercy Hospital deliver on its promise to provide reliable, high-quality, cost-effective healthcare for residents of the Portland area.

About Mercy HospitalKnown in its service area as the “Heart of Healing,” Mercy Hospital in Portland, Maine, is a not-for-profit 160-bed community institution sponsored by the Sisters of Mercy of the Americas, Regional Community of Portland. Founded in 1918, it is a member of Catholic Health East, a multi-hospital health system serving communities in 11 states from Maine to Florida. From two hospital campuses in Portland and several suburban locations, Mercy offers the latest technology and highly skilled clinicians and staff.

* The cost savings approximation herein is presented for informational purposes only, based on GE Healthcare’s past experiences with its other clients. As each hospital is unique, your facilities may have other costs, capacities, or other variables that may not be reflected herein. GE Healthcare does not warrant, guarantee, or certify that you will see the cost savings listed herein, and accepts no liability for the consequences of any actions taken on the basis of these cost savings estimates.

DOCXXXXXX

© 2011 General Electric Company – All rights reserved.

General Electric Company reserves the right to make changes in specifications and features shown herein, or discontinue the product described at any time without notice or obligation. This does not constitute a representation or warranty or documentation regarding the product or service featured. All illustrations or examples are provided for informational or reference purposes and/or as fictional examples only. Your product features and configuration may be different than those shown. Contact your GE Representative for the most current information.

GE, the GE Monogram and imagination at work are trademarks of the General Electric Company.

General Electric Company, by and through its GE Healthcare division.

GE Medical Systems Information Technologies, Inc., doing business as GE Healthcare.

GE Healthcare 3000 North Grandview Blvd Waukesha, WI 53188 U.S.A.

www.gehealthcare.com