TractManager’s Purchased Services program helped a health system in the Northeast save $11M on imaging and biomedical service agreements.

Over the course of a year, a special projects unit from the TractManager Purchased Services team helped the health system prepare an RFP for its Biomed and Imaging technologies, then followed up on negotiations.



A health system in the Northeastern U.S. that includes six acute-care hospitals and a children’s hospital was spending more than $7 million each year on contracts to provide service to a full spectrum of imaging and biomedical equipment. This equipment came from different manufacturers and had a variety of service agreements.

TractManager Case StudyThe Challenge:

The medical equipment market in the U.S. exceeds $8 billion a year. Providing service and maintenance for the complex equipment found in today’s hospitals is an expensive proposition. After spending millions of dollars on sophisticated imaging equipment, for example, a health system is then faced with paying for service agreements that can easily cost between $100K and $200K per year per device. Excessive downtime can result in lost revenue and patient services, and leave the provider open to liability issues. This makes servicing medical technology both a clinical and a cost control issue.

Service agreements touch hundreds of pieces of equipment from various vendors with varying coverages, including leases, rentals, and owned equipment. This equipment ranges from MRI machines to bedside monitoring equipment and is integrated into every clinical area of every hospital.

Undertaking a project of this scope and scale is daunting enough, but knowing that it would impact every clinical area in a large system with multiple stakeholders made the risk all the greater. But the promise of substantial savings and improved service made the risk worthwhile.

The Solution?

Top 10 Negotiating Strategies

Skilled negotiators are like musical virtuosos. They have an extensive repertoire of tactics from which to draw, and they know when and how to make them a part of their performance. But negotiating healthcare contracts for capital, purchased services, and IT services can test the artistry of even the most masterful negotiator.