EMC provides comprehensive equipment maintenance solutions that reduce costs. RCM&D’s Healthcare team implemented Equipment Maintenance Coverage (EMC) for the client. Additionally, some of the client’s equipment was not covered by a service contract at all. The preventative and corrective maintenance was also difficult to track because each piece of equipment had its own deductible. They had difficulty monitoring the various agreements and were inefficient at tracking and adhering to the cancellation provisions. The client did not have a way to manage or track the various vendor service contracts throughout the facility. These 60 pieces of original equipment have more than 20 different service and preventative maintenance vendors, with an annual cost of equipment maintenance totaling $1 million.Īs the hospital faces growing costs, a tighter budget and lower federal reimbursements, the ongoing expense and management of equipment maintenance has presented a complex challenge. This client owns approximately 50 pieces of equipment, with purchase of 10 additional pieces of equipment predicted in the near future. The hospital owns a single parent captive insurance program domiciled in the Cayman Islands. The healthcare system represented in this case study is a general medical and surgical hospital with approximately 100 beds located in a rural area. Hospitals and healthcare systems use highly advanced equipment to provide necessary services for their patients, but many healthcare organizations find it challenging to manage the cost of equipment maintenance and to track the many service contracts. This is especially true for healthcare systems where technology is constantly changing and advancing. Many organizations invest a great deal of money into purchasing and upgrading equipment. Other supplementary data including FMECA’s, and dashboards were also automatically developed from the results.Reducing the Cost and Inefficiency of Vendor Service Contracts.

Thirteen key recommendations to further improve analysis.Achieved a 25% improvement in value compared to current OEM recommended strategy.Eight unique plans for 278 sewage pump stations.Creation of a cost optimal maintenance strategy that considers monetized risk.Critically review the effectiveness of the OEM recommended maintenance strategy.Produce optimal strategies for each of the 278 sewage pump stations.Identify optimal maintenance strategies by combining engineering opinion and data.The traceable relationships mean both the model and analysis can be continuously challenged and improved upon. The strategy optimization produced cost optimal strategies rooted in engineer knowledge and data. Goulburn Valley Water’s OEM recommended tasks were reduced to a combination of four tasks performed at varies intervals for each group. The analysis identified eight groups of assets with a common strategy. This knowledge base was then used to, analyze various scenario’s and optimal strategies that maximize value were recommended. The link between asset attributes, its environment, and consequences of failure were captured in Modla’s knowledge base. It considered factors unique to each asset such as H2S concentrations, configurations and component inclusion as well as asset risks. The analysis produced unique maintenance strategies for 278 unique pump stations. The RCMD methodology and decisions layer means that a fair chunk of the grunt work of RCM is automated.” - Samar Patel, Asset Optimization Engineer GVW Results of strategy optimization “The product developed by Modla provides a one stop platform for reliability information and intuitive analyses. The lack of a structured approach meant the rationale behind their decisions was unclear, and the reasoning could not be traced back to relevant asset drivers. Their strategy for maintaining individual sewage pump stations was modified over time and now varied among individual sewage pump stations. Therefore, the value and effectiveness of various proactive maintenance tasks were unknown. Goulburn Valley Water’s OEM recommended strategy had not yet undergone a quantitative cost-benefit analysis.

The analysis identified several areas of improvement compared to their current OEM recommended strategy resulting in a 25% value improvement. From this single model, a unique maintenance strategy was recommended for each of their 278 sewage pump stations. Goulburn Valley Water partnered with Modla to develop an RCMD model for sewage pump stations.

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