Quote review service helps to secure savings, ensure contract protections for large dollar capital purchases
CHC Supply Trust launched a formal quote review service for capital equipment purchases in November of 2020. In the first nine months, 44 health systems have accessed the new service by submitting vendor proposals and price quotes to QuoteReview@CommunityHospitalCorp.com. Thus far, 228 quotes have already been reviewed for purchases totaling more than $44 million.
CHC Supply Trust launched this service because almost a third of all capital equipment proposals and price quotes are inaccurate. The early results of the CHC service supports this premise of quote inaccuracy. Of the 228 quotes reviewed, 71 were inaccurate in relation to the contract price, terms, and conditions. Many of the financial terms such as payment terms, freight cost, shipping expenses, and contractual warranty obligations are often missing or quoted incorrectly. These terms can have a significant financial impact.
At Community Hospital in McCook, Nebraska, the new quote review service proved to be a timely benefit. The hospital had several construction projects underway and had also received funds from the CARES Act. They wanted to manage those funds appropriately and efficiently. According to Tierney Reilly, Director of Materials Management, the quote review service “provided me an extra set of expert eyes in reviewing the vendor’s proposals to ensure contract accuracy. I also really like the scorecard report that is provided along with the quote review service. It is a simple and concise format that has been very helpful in communicating errors to the vendor community with their proposals. Also, I can store and easily retrieve the scorecard should I have any challenges with incorrect fees from the vendor after implementation.”
CHC Supply Trust quote review services also ensure that hospital participants are accessing the HealthTrust quarterly group buys and the vendor’s improved pricing, terms, and conditions offered via the group buy promotion. More information on the HealthTrust group buys can be accessed online via the HealthTrust portal at https://members.healthtrustpg.com/group-buy-program.