Contractual Options and Vendor Relationships
Some programs find vendor services to be an efficient method of supplying essential but expensive services. Because transport vehicles are an expense that require additional certification and administrative oversight to operate, many programs find the efficiencies offered by vendors to be helpful in meeting transportation needs.
Most businesses, hospitals included, use a number of outside (nonowned) service contractors to provide services. Expertise in managing service contracts should exist in the institution and should be included in all negotiations and contract management interactions. Before establishing a vendor relationship, the base facility should evaluate the availability of suppliers and the impact of the relationship on the program and the organization. A number of questions should be answered before beginning the formal search for the right supplier: Are there suppliers in the market that can provide the service? Are there suppliers in the market interested in forming a contractual relationship for services required? Will the relationship be valuable to the base facility (ie, will the expense of the supply contract be offset by potential benefits)? What is the base hospital willing to pay for the contracted service? What portion of the cost will be reimbursed by revenue generated as the hospital sells the contracted service to a third party? Do the suppliers in the area have expertise in managing service contracts with a health care organization? As one finds with transport in general, the benefit of the contract may reap more than financial benefits to both parties. The ability to provide efficient service to distant hospitals may promote goodwill that enhances marketing efforts to communities served.Once the decision is made to find a vendor, a request for proposals (RFP) should be distributed to potential vendors. Potential vendors are identified through an evaluation of the potential candidates and a prescreening by the transport program and/or institution.
Once the RFPs are returned from interested vendors, the review and interview process begins. In essence, the base facility and transport staff must find the best value. All vendors will be eager to tout their advantages, but limitations must be presented and understood. Understanding a vendor's limitations becomes as important as understanding its strengths. Once limitations are identified, the transport program must ask, “How will limitations be overcome?” It is not acceptable to jeopardize a patient's condition, and alternatives must be developed in advance. Financial arrangements are important to evaluate in advance. How does the vendor want to be paid? Will the vendor directly bill patients for services? What is the direct avenue for dispute management and resolution? Will the base facility receive a reduced rate as a result of a guaranteed volume? It is important at this stage to identify responsible people in the vendor's organization and determine the ability of the identified people to effect change if a contract is signed.Vendor contracts require management throughout the life of the contract. An administrative official at the base facility should be a liaison between the transport team and the hospital's administration. This person, along with the transport program manager, should monitor financial and service components of the contracts on a regular basis. A clear line of communication and frequent interaction with a responsible member of the contract service provider's staff is essential.