Healthcare’s Most Critical Equipment Issue
Obsolescence
What is it and how to manage it
Obsolescence: It’s not something that most people think about, though eventually they’ll have to replace their smartphone or computer.
For healthcare professionals, particularly those charged with keeping capital equipment working, obsolescence poses a much more ominous threat. Failing to anticipate it can result in operating rooms going idle and schedulers scrambling to move around procedures. They may also have to face the anger and frustration of everyone from care teams to patients and their families.
In some instances, it may be possible to keep obsolete equipment functioning for a limited time. However, those measures tend to be extremely costly. Consequently, healthcare organizations must fully understand obsolescence and address the potential impacts head-on.
Four Types of Obsolescence
Merriam-Webster defines obsolete as “no longer in use or no longer useful.” There are multiple reasons why a facility may choose to stop using a piece of equipment. The four most common are:
Technical obsolescence
This occurs when a piece of equipment can no longer be serviced or repaired due to changes in technology.
Functional obsolescence
An asset is functionally obsolete when parts are no longer available, and the manufacturer no longer supports it.
Compatibility obsolescence
In some instances, a piece of equipment still functions correctly, but it can no longer be integrated with more advanced devices or systems.
Regulatory obsolescence
Changes to regulations for equipment safety, energy efficiency, etc., can result in equipment being deemed obsolete.
Three Stages of Obsolescence
Fortunately for procurement professionals, obsolescence doesn’t happen overnight. The end of a device’s useful life occurs in stages:
STAGE 1
Notification of pending obsolescence.
The original equipment manufacturer (OEM) gives advance notice to equipment owners that it will no longer manufacture a device as of a specified date.STAGE 2
Notification that parts will no longer be available.
Typically, after an OEM stops producing a device, replacement parts remain available for several years. Manufacturers announce the date after which they’ll no longer provide parts.STAGE 3
Notification of equipment “sunsetting.”
In most cases, OEMs will specify a “drop-dead” date after which they’ll no longer provide support or assistance of any kind with old equipment.You can protect your organization from the operational and financial consequences of obsolescence by developing a plan for managing it.
OEMs provide "sunsetting" notifications to help healthcare organizations stay ahead of the obsolescence curve. However, you shouldn’t rely on those communications alone. In busy environments, it’s easy to overlook these notices or read them but forget to act.
OBSOLESCENCE MANAGEMENT STRATEGIES
Keckler Medical is an invaluable resource for our customers, serving to help facilities assess their equipment and develop obsolescence strategies.
Getting Proactive About Managing Obsolescence
Our primary goal at Keckler Medical is providing healthcare organizations with up-to-date equipment and services needed to stay operational. That means taking a proactive stance on equipment obsolescence.
Stacey Seward, our project manager, has over 30 years of experience with Keckler Medical. He’s been known to say, “If you don’t schedule necessary maintenance or replacement, your equipment will schedule it for you.”
Decrease Your Stress While Increasing Uptime
As Benjamin Franklin once said, “An ounce of prevention is worth a pound of cure.” For healthcare organizations, the “cure” that comes from effectively managing obsolescence is twofold.
First, they face fewer schedule disruptions and avoid the associated consequences, from lost revenue to unhappy patients and staff. Second, everyone who can be affected by those failures —procurement departments, repair technicians, care teams — enjoys a more stress-free environment.
No obsolescence strategy can guarantee a smooth transition in every instance. Sometimes, equipment fails early and unexpectedly. But there is tremendous peace of mind in having a relationship with Keckler Medical for rapid response and resolution when problems arise.
BOTTOM LINE
By partnering with Keckler Medical your operating rooms can avoid the negative consequences of unanticipated equipment obsolescence.
Six Crucial Steps to Avoid Obsolescence
With the right plan in place, procurement teams can reduce the impact of obsolescence before it disrupts operations.
STEP 1
Create a system for recording equipment information. Record important information about your equipment, such as the date it was manufactured, implemented, most recently serviced, and its announced obsolescence-related dates, etc.
STEP 2
Identify an acceptable level of obsolescence. It is virtually impossible to avoid having certain assets reach obsolescence before you act. However, some devices may not be as critical to your operations as others. Focus your management efforts.
STEP 3
Create a schedule for equipment risk analysis. The frequency of your review — monthly, quarterly, annually — will vary based on the type, condition, and age of your equipment, among other factors.
STEP 4
Keep spare parts and manuals in one central location. When you encounter a problem with a piece of equipment or get notifications about it, you should be able to determine your next steps quickly.
STEP 5
Involve everyone in obsolescence management. You might have one person, or even a committee, lead your obsolescence management efforts, but everyone should play a role. Sharing anything from how a piece of equipment is performing to news about new products can be helpful.
STEP 6
Avoid disruptions by partnering with the region's product and service leader. Keckler Medical has the industry's most skilled team, strong relationships with top OEMs, and a track record of attentive support. We can help you craft an obsolescence management strategy.