Latest / Medsolve Dynamics / The Number With No Counterparty
Transcript
- Yoel Bakas: A cancer program went to court this month over what it pays its own hospital for the building. $28.5 million a year for operating room access, lab, and information technology. The host system wanted more. They wanted more than $82 million dollars Part of what the program is asking for is the court to settle whether it can go build its own facility instead. However, that ends, here's the part that applies to you. Nearly every cancer program can produce the numbers charged for space, for lab, and for IT. However, very few can tell you how it was derived or what it would have taken to change it, for it to move any amount. I've watched programs argue for a year about a single linear accelerator, while the annual shared service allocation, which is several times the machine's purchase price, sat in a finance sheet that nobody opened. Vendor's number gets negotiated to the dollar, and it should be. But the bigger one has no vendor quotes. In most places, it was set once inside finance and carried forward from there. It can decide what your capital case has to clear before anybody walks in with a quote.