RWJBarnabas Health Transforms Its Equipment Replacement and Service Strategy


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.

Leaders at RWJBarnabas Health offer advice to organizations that want to adopt a more proactive strategy for equipment service and replacement.

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