For years, leaders at RWJBarnabas Health, West Orange, N.J., relied on full-service contracts from equipment manufacturers to maintain their linear accelerators, robotic surgery systems, magnetic resonance imaging (MRI) scanners, and other critical equipment. However, such service came at a high price. In 2011, leaders decided to adopt a self-insured model combining labor from their in-house service technicians with original equipment manufacturer support purchased on an as-needed basis. Thanks to their efforts, leaders have reduced equipment service costs by 20-24 percent.
The strategy also laid the groundwork for a new process that has dramatically changed how leaders at RWJBarnabas Health replace critical equipment as part of their capital planning process.
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