long-term relationships
“Like other vendors, we have to
demonstrate that Siemens is
here to stay, and that our
investment plans are geared to
meeting the needs of our
customers, the NHS Trusts.”
Managed Equipment Services
In our own case, we can demonstrate is hoping to bring something unique to
that we achieve that goal. At any time, its operations. And that has to be
Back in 1998, Siemens won the first
typically about two thirds of the solu- achieved while delivering the potential
Managed Equipment Service (MES)
tions in our healthcare portfolio are less for greater return on every pound of in-
contract to be awarded, and currently
than three years old – it has required sig- vestment. That is the kind of considera-
operates under MES contracts with a
nificant amounts of R&D investment to tion which has prompted the company
greater number of NHS Trusts than any
keep development at that pace. to develop the hybrid PET/CT technolo-
other healthcare provider.
“In addition to maintaining a lead with gies which benefit the clinician, the pa-
Long-term, multi-million pound MES
regard to R&D, we also have to be sensi- tient and the Trust’s budget.”
& PFI contracts are in place at hospitals
tive to the current climate, and customers That would appear to have been a con-
in Wishaw, Airedale, Blackburn, Worces-
need to be confident that they are con- sideration in the UHB agreement, where
ter, Dudley, Havering, Barnet, Barts &
tracting with a sustainable organisation. Siemens Healthcare is supplying MRI
The Royal London and North Stafford-
“Siemens has been in the marketplace scanners, four CT scanners and three of
shire.
for 150 years. Like other vendors, we the hybrid SPECT/CT systems to the es-
Peter Harrison went on to explain that
have to demonstrate that we are here to tablishment.
“Managed Equipment Service contracts
stay, and that our investment plans are While the contract had originally been
find specialist vendors like ourselves
geared to meeting the needs of our cus- conceived as a service under the PFI
supplying, installing and maintaining
tomers, the NHS Trusts.” contract for the hospital, Siemens is now
key categories of healthcare technology
supplying the systems direct to the
far into the future.
“No less important, however, is that
More involved than leasing
Foundation Trust.
there are refresh clauses in such con-
Hospital administrators unfamiliar with
tracts, which require the equipment part-
the implications of Managed Equip-
Making economies
ner to keep the systems updated at
ment contracts may view them as little No area of the public sector has been
agreed intervals.”
more than leasing deals, but this is a able to avoid the expenditure cuts which
It would be easy to argue that this
perception that the Siemens executive the present economic downturn has im-
long-term arrangement might not al-
was keen to correct. posed. In the case of the NHS, it is vital
ways be in the interests of the patient or
“These are complex relationships: by that the quality of patient service should
the hospital trust involved. What would
choosing to work with Siemens, a Trust not deteriorate as a consequence.
happen, for example, if a vendor ap-
The number of NHS Trusts converting
pointed because of its technical edge
to the semi-autonomous NHS Founda-
today were to lose that lead and could
tion Trust status is increasing, which
only offer less than ideal solutions in the
means that there is greater control and
periodic reviews?
responsibility for revenue and invest-
Harrison did not accept that this was a
ment decisions at the ‘customer-facing’
flaw in the contracting arrangements.
level.
“Solutions supplied under refresh provi-
More effective use of capital – as typi-
sions must meet all of the standards laid
fied by Siemens’ approach to hybrid
down by the Royal Colleges and agreed
imaging systems – will reduce the costs
investment plans. If the contracting sup-
to those Trusts of delivering patient serv-
pliers cannot meet those requirements,
ices. Judicious investment strategies can
they will source the appropriate tech-
therefore improve revenue flows and
nology from third parties. Clearly there is
ensure that patient experience – ‘cus-
an incentive for the contract holder to keep
tomer satisfaction’ – continues to im-
ahead of the game with its technology.
prove in the process. §
44
44
The Informed Executive
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