HSS SAVeR Plus – Combining Multi-Year Financial Planning and Immediate Cash Savings
The Service Agreement Value Review (SAVeR) Plus program, introduced more than 15 years ago, offers larger hospitals significant dollar savings for equipment maintenance and time savings for hospital department directors.
Poudre Valley Hospital, Children’s Hospital Colorado, Community Hospital, and Vail Valley Medical Center have used SAVeR Plus, realizing a combined savings of well over $2.25 million a year from the program. They estimate that the program has helped them also avoid over $1.4 million a year in costs.
SAVeR Plus was one of the 50 “what we do right” examples that Poudre Valley Health System cited in their successful application for the 2008 Malcolm Baldrige National Quality Award.
Here’s how SAVeR Plus works.
- An HSS equipment manager meets with department heads to learn about their equipment and desired service needs.
- The asset manager researches each piece of equipment’s maintenance and repair track record and prepares a Process Log. The Log describes the department’s stated need and the pros and cons of three service strategy and cost options that calculate risk level and cost. The options typically include:
- Full service—All PM and repairs made by the manufacturer or third-party service provider.
- PM only—Performed by a third-party provider.
- Non-contract—Incur costs as needed.
- Or some mix in-between.
- Department heads review each Log with the HSS asset manager and select the best service strategy to meet their needs.
- HSS negotiates and executes agreements for approved strategies and the hospital holds estimated costs for each agreement in a general ledger account.
- If equipment malfunctions, departments notify the HSS equipment manager, who will call the correct service provider, create purchase orders, and review and pay invoices, making sure the service and billing are in accordance with the agreement.
Most budget programs terminate funds at the end of a fiscal year, which makes it impossible to plan funding for repairs when the mean time between failures is two or more years. We can show you how to structure this account so that your funds accumulate year over year, providing the financial resources needed to cover major component failures.
The unique approach of SAVeR Plus allows multi-year financial planning and generates an immediate cash savings for you. Plus, HSS will pay any expenses that exceed the agreed upon estimated cost, up to 100 percent of the original agreement price!