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The key factor in determining the budget of any medical institution like a hospital, clinic, or private practice is the services offered. The cost of those services against the income generated by those services will form core of any budget. Certainly much of the cost of running an institution will be paying wages to staff trained in critical areas and to maintain expensive advance medical equipment which allows the offering of key services. However, there are additional ways to save money through the careful negotiation of price on more mundane items that are required for the daily operations of an institution.
An institution requires a host of different products not related directly to core services. Sterile gloves, anti-bacterial soap, and cleaning supplies are just a few of these key products. Their price can fluctuate greatly. A box of sterile surgical gloves can run as high in price as several hundred dollars. It’s quite clear that an institution can gain massive savings over time by negotiating these prices down over time, and it would be foolish for an institution not to encourage its purchasing agent to try. One should remember several factors when negotiating a price.
One should remember that price is a key factor, but not the only factor. Unlike other institutions, medical institutions cannot perform their functions without the related supplies. No matter how advance one’s operating table is, one can’t perform surgery without sterilized surgical gloves. In this case, quick and flexible delivery and service may remain more important than a few dollars in price. This is why the first step to any negotiation mean drawing up a list of objectives and determining where you have flexibility.
Next, one should analyze one’s supplier. If they’re a large supplier with multiple customers you’ll have less leverage than if they’re a small company and you’re their main customer. One should keep a realistic picture of what your supplier can actually do.
Finally, develop a negotiating strategy that fits your needs and stick to it. Don’t be swayed by pressure and walk away from anything that doesn’t fit your needs.
