Medical technology touches practically everyone in some way. From virtual visits to MRIs to fitness watches to fitness apps to vaccines and other medical treatments, medical technology continues to expand and improve. With various forms of medical technology being in such high demand, it’s important to consider some of the principles that may be used to acquire it. In this article, we are sharing 5 principles used in acquiring medical technology. First, though, let’s address the importance of these principles.
The Importance of Acquisition Principles
Acquisition principles are important for many reasons. However, the most important reason is money. Medical technology is a serious financial investment. It’s important to use the right acquisition principles to ensure that it is the right investment at the right time.
Related: Taking the Fear out of Mergers & Acquisitions: A Transaction Attorney Perspective
The acquisition principles used by your healthcare facility to acquire medical technology depends on several factors. These factors are highly individual to each facility. Larsen Law assists healthcare facilities in both determining whether the acquisition is in the facility’s best interest and negotiating the agreement. To learn more about how Larsen Law can partner with your healthcare facility, call today us today at 303-520-6030.
Developing the Right Processes to Acquire Medical Technology
The first principle addresses what should happen before your healthcare facility begins acquiring medical technology. It is important to develop and follow the right processes. These processes should focus on the long-term financial impact of the medical technology and not just the initial cost involved. Although that initial cost may be an important factor, it may be possible to negotiate it or other benefits that come with the technology. The initial price may be affected by several factors, including whether there are similar versions on the market and whether the acquisition is exclusive to the facility.
These processes, once developed, should be written in such a way that it enables for the facility to follow them for each acquisition. Information that may need to be considered as part of the processes include how suppliers are evaluated and selected, the supplier’s ability to meet the facility’s requirements, how to evaluate the level of risk associated with the acquisition, and how to assess whether the purchase of medical technology is critical to the mission of the facility.
Review Clinical Information of the Medical Technology Before Acquisition
Depending on the type of medical technology being acquired, it reviewing clinical information related to its development, testing, and use may be necessary to help the facility determine whether the technology is the best option for the facility. This may include reviewing treatment options for the condition that the medical technology is used to treat as well as whether the current technology meets the proper standards for treatment.
Of course, if the medical technology is more for educational and informational purposes, you may not have clinical information to review. However, you would want to ensure that whatever the technology provides meets the current knowledge standard for its purpose. If it is a system that helps your facility digitally manage and store patient information, medical records, and other sensitive data, you’ll also want to review its data security standards.
Consider Your Future Goals and Needs as a Facility
Technology in all industries evolves based on several factors. One of those factors is the current technology. A lot of new technology is developed by relying in some way on existing technology. One principle to rely on when acquiring medical technology is to discover whether your facility will have the right to take the technology and build upon it in the future. This could help your facility better meet its future goals and needs.
If you’re able to build upon the existing technology, it’s important for you to know whether your facility alone will be able to use the development, if the licensing of the new development reverts to the creator of the originally acquired technology, or if there are other limitations related to further development.
Consider Whether the Technology Improves Efficiency
You’ll recall from the beginning of this article that we mentioned one of the most important points of developing acquisition principles has to do with finances. It’s important to ensure that this investment will pay off for your facility in the future. Of course, being able to further develop the medical technology acquired is one option that may benefit your facility.
Another consideration is efficiency. Does adopting the medical technology improve the efficiency of your facility? It’s an important question because we’ve all (at some point in our personal lives) bought or used technology we thought would make life easier, but it made it more difficult instead. If medical technology makes your facility inefficient, you could find yourself paying more to fix a problem you didn’t think you’d encounter as well as need to pay to possibly replace the technology that caused the problem. Efficiency isn’t just found in how the medical technology operates to benefit patients. The facility also needs to consider how the technology impacts the allocation of resources as well as how it impacts facility processes. Will you need to make changes to your facility such as relocation of electricity, data cables, or even changes to your heat and air system?
Discuss the Potential Acquisition with the Right Team Members
Medical technology impacts more people than just patients and providers who use the equipment. It could potentially impact administrative staff, IT staff, and the space within your facility. Before making the final decision, pull together the right team members to discuss the technology, how it may impact them, how it may impact the facility, and some of the information mentioned in the last section about the allocation of resources and the costs associated with doing so.
Larsen Law: Helping Healthcare Facilities Negotiate Medical Technology Acquisitions
Larsen Law prides itself in helping healthcare facilities understand their needs in order to better negotiate medical technology acquisitions on their behalf. To discuss the needs and future of your healthcare facility, call Larsen Law today at 303-520-6030.