Improving capital management and standardization with ECRI’s Predictive Replacement Planning

Problem

A nonprofit academic medical center faced significant challenges with capital equipment management across its multiple hospital sites. The organization did not have a standardized, computerized maintenance management system (CMMS), and there were inconsistencies in inventory management, especially in critical areas like clinical engineering and radiology. This led to compliance risks, inefficient management of assets, and poor coordination between departments. These issues were compounded by the fact that each hospital had different processes for managing and tracking equipment, making it difficult to have a unified approach. Additionally, the lack of a clear process for 
replacing equipment led to costly, reactive purchase decisions.

Solution

The nonprofit academic medical center partnered with ECRI to conduct a Predictive Replacement Plan (PRP) for their equipment management needs. ECRI’s comprehensive approach included analyzing the hospital’s inventory data and meeting with department leaders to gather insights into equipment condition and usage. ECRI utilized a 12-factor rating system to provide an objective and data-driven method for predicting when equipment should be replaced. This system considered factors such as useful life, parts availability, safety data, patient impact, and clinical importance. 

One of ECRI’s key recommendations was to standardize major devices across service lines and enter into longer-term agreements with vendors to lock in pricing. ECRI also encouraged the nonprofit academic medical center to harmonize workflows and centralize vendor intake processes to ensure that all new equipment purchases would be aligned with the hospital’s long-term capital strategy.

Result

ECRI’s PRP had a transformative impact on equipment management processes. Following ECRI’s recommendations, the nonprofit academic medical center began the process of standardizing its infusion pumps, which led to a 25% savings on the cost of those devices. This bulk purchasing approach not only resulted in immediate financial savings but also positioned the hospital to negotiate better terms for future equipment purchases. In addition, the PRP helped highlight compliance risks and operational inefficiencies, particularly in clinical engineering, that leadership was able to  address. The insights from ECRI’s analysis provided the data they needed to implement a centralized CMMS 
across all hospital sites, aligning their equipment management processes and reducing variability between departments. This improved visibility into asset management allowed the hospital to plan more strategically for future capital purchases. As a result of ECRI’s work, the nonprofit academic medical center now has a clearer understanding of its equipment life cycle and the ability to make more informed decisions about capital expenditures, helping to ensure cost efficiency and regulatory compliance moving forward.