Reducing Costs and Environmental Impacts to Healthcare through a Total Cost of Ownership Calculator

Publish Date: September 15, 2017 | Content Areas: Procurement | Tags: Contracting, Cost Management, CQO, Strategic Sourcing, Sustainability | Formats: On-Demand Recording

Member Price: Free | Non-Member Price: $99
CPE Credit: 1
Duration: 60 minutes

Overview

With tremendous cost pressures within the U.S. health care system, healthcare providers are looking at different ways to save money. For many medical devices there are submerged costs that are not always reflected in the purchase price and may not be considered during purchasing decisions. To reduce these costs and associated impacts, the total cost of ownership of a product or service should be included during purchasing decisions to assess the full cost to an organization. To address this need, a total cost of ownership calculator has been developed to provide purchasers with a standardized and systematic way to consider the various use and waste costs of products that are procured. These direct organizational costs include utility, labor, maintenance and waste disposal. Partnering with Trucost, Practice Greenhealth worked collaboratively with hospitals and health systems, suppliers, and GPOs to build, test, and now deploy a tool for healthcare. Learn outcomes from health care organizations that have used the tool, how it was applied, the user requirements, the targeted products, the outcomes showing the comparison of costs and savings identified. This session will demonstrate the tool’s basic functions and share resources available to support its use. 

Learning Objectives

  • State the business case for including a Total Cost of Ownership (TCO) evaluation in the purchasing process for medical products.
  • Observe how the TCO tool provides an easy and standardized method to calculate total costs to healthcare to inform purchasing decisions.
  • Calculate the savings and outcomes from case studies.
  • List submerged cost areas that impact the total cost to your organization.

Presenter: Andrew Madden, Senior Director of Supply Chain, Dana Farber Cancer Institute

Presenter: Beth Eckl, Director, Environmental Purchasing Program, Practice Greenhealth