Improving Operational Efficiency While Staying in Budget
More Competitiveness Through Financing an Equipment Upgrade
May 13, 2015
With a customized financing solution for its equipment upgrade, U.S.-based Princeton Radiology is now able to stay competitive in its region and at the same time pursue a long-term strategy that fits the organization’s budget plans.
Princeton Radiology, based in New Jersey, USA, has been a regional leader in the diagnosis and treatment of diseases for more than 50 years. The radiology network recently planned to replace one of its computed tomography (CT) scanners – a Siemens Emotion 16 that it had purchased in 2007.
Finding the Optimal Solution Together
The Siemens project team worked feverishly to get this transaction completed in one day – a considerable feat when factoring in the constant negotiation, approvals, and input needed from a variety of teams in a very short period of time. Siemens proposed a seven-year fair market-value lease solution to help Princeton Radiology acquire the new Siemens Perspective 64 CT scanner. The monthly payment for the equipment lease when coupled with the cost of the accompanying service contract allowed Princeton Radiology to stay within budget. The financial package for this machine would enable Princeton Radiology to upgrade its equipment and secure service at the same cost as it was paying for its original machine. Since the solution addressed so many of its needs, Princeton Radiology inquired about the possibility of negotiating a multiple equipment transaction so that it could upgrade the scanners in its other locations as well. Ultimately, the combination of equipment and financing from Siemens made it easier for Princeton Radiology to provide higher standards of care.
Incentive to Think Out of the Box
“When Siemens provided such an attractive financing package for the one scanner, it caused us to think more broadly about the possibility of obtaining a similar package to upgrade the machines at our other locations,” Marc Rothenberg, Chief Operating Officer of Princeton Radiology, commented. “In the end, Siemens offered the innovative healthcare equipment our patients expect from us along with a payment plan that allows us to maintain our budget and upgrade scanners at several sites.”
The Advantages of Change
Ultimately, Princeton Radiology acquired five scanners from Siemens using the same financing approach. As a result, they were not only able to upgrade their equipment and to secure service for scanners at five locations, but also to manage their budget in a cost efficient, predictable way.
Standardizing the equipment across multiple locations offers Princeton Radiology other advantages in that it also establishes a common basis on which to train technicians and allows for a consistent communication platform for products across Princeton Radiology’s multiple locations. Combined with the predictability of payments for the next seven years, this will help increase operational efficiency for Princeton Radiology overall.