Understanding Self-Insured Retention (SIR) Programs Healthcare Equipment Maintenance
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The current economy has forced healthcare organizations across the country to search for ways to save money. As a result,Understanding Self-Insured Retention (SIR) Programs Healthcare Equipment Maintenance Articles many organizations are investigating the annual cost of maintaining their healthcare equipment inventory. In the past, it was common practice for healthcare organizations to purchase Original Equipment Manufacturer (OEM) service agreements for all their healthcare systems from patient monitoring to sophisticated diagnostic imaging systems. However, OEM service agreements are often quite expensive, service options are limited, and reports on financial cost benefit analysis, vendor issues, or equipment performance are rarely provided.
As a means to reduce maintenance costs and gain control over their maintenance budget, many healthcare organizations are challenging the rising cost of OEM service agreements by building in-house service capabilities, purchasing multi-vendor service programs, and working with providers of Equipment Maintenance Management Programs for customized solutions. Many healthcare organizations have found that a hybrid solution, using a combination of in-house biomedical staff Healthcare Supply with an Equipment Maintenance Management Program (EMMP) and the selective purchase of necessary OEM service agreements, provides the best long-term and cost effective solution. This approach provides the greatest level of control, vendor flexibility, and cost containment possible to handle the wide range of equipment utilized by healthcare organizations.
Over the past few years, insurance brokers have been promoting an insurance solution to address the healthcare maintenance cost issue – the Self-Insured Retention (SIR) Program. In insurance terms, this product is known as a deductible program. While the SIR Program is currently offered by a handful of insurance companies, aggressive insurance broker marketing of this product in the healthcare space has created interest, questions, and some confusion.
