Funding Models

Question 1

2 types of In-House Department

Answer 1

1. De-centralized (“zero-cost”) model
2. All Encompassing Budget Model

Question 2

De-centralized (“zero-cost”) Model

Answer 2

• Internal Service provider only
• Tighter financial control
• Fewer economies of scale, no parts savings
• Unpredictable

Question 3

All Encompassing Budget Model

Answer 3

• Internal service and maintenance manager
• Professional management (less burden on departements)
• Parts economies
• Single consolidated budget
• Maintenance manager means better vendor control

Question 4

Additional Models

Answer 4

1. External Sourced
   * 3rd Party
   * Original Equipment Manufacturer (OEM)
2. Insurance Brokers
3. Mixed

Question 5

Pros of In-House

Answer 5

• Way less costly
• Alignement of objectives and mission with institutions
• Wider coverage of services and daily contact with users

Question 6

Cons of In-House

Answer 6

• Need resources and training
• Need test equipment
• Permanent staff so difficult to reduce level of staffing if workloads change
• Overhead costs
• Cross-training and coverage

Question 7

Pros of External Service

Answer 7

• Specialized Training
• Specialized test equipment
• Staffing levels flexible
• Accountability through financial negotation

Question 8

Cons of External Service

Answer 8

• Much more costly (10% to 15%)
• Motive is profit, not aligned with hospital mission
• Remote and sporadic contact
• Smaller coverage of needs (repairs and some PM are scheduled)
• Weekends, evenings & holidays not included otherwise high fees.
• Discrete equipment coverage (maybe unwilling to work with other vendors)

Question 9

Original Equipment Manufacturers

Answer 9

• OEM
• Company that manufactures and sells products or parts of a product that their buyer sells to its own customers while putting the products under its own branding.

Question 10

5 Contract Types

Answer 10

1. Full Service: Includes parts and labour
2. Shared Service: On-site personnel, 1st level support and troubleshooting
3. PM Agreements: Scheduled maintenance
4. Parts only Agreements
5. Insurance Management Programs

Question 11

Special Access Program

Answer 11

• Ability to get equipment even if it isn’t Health Canada approved
• When clear benefit to it
• Can only be used in last ressource case when other options have been tried but unsuccesful
• Procedure/Device for onle 1 patient performed/given by 1 physician
• Very specific licensing