Guidelines for Software Purchasing
Health Data Management recently posted an article detailing tips on both selecting and purchasing software for healthcare agencies. The tips were based on advice provided by an expert consultant from the healthcare information technology field, presented at the HIS Buyers Seminar in early October.
The advice was to forgo the request for proposals (RFP) process, which Vince Ciotti suggested wastes precious time. He recommends that a modified version of an RFP be employed, including a brief overview of information on the software product, ballpark cost estimates, corporate financial reports, and numbers of clients in the State served by the software provider company. Organizations of similar size to the healthcare organization reviewing products are particularly useful.
He further argues that the information companies hope to gain from a proposal in terms of product functionality is more accurately detailed in the product user’s manual. Based on information from the mini proposals, the field of options can be narrowed to six candidates. At this point, a formal price request, product demonstration, and structured site visits are tools to help further pare the list down to three software providers. Then, Mr. Ciotti suggests that contract terms should be negotiated simultaneously with two different vendors.
A four month process should be the extent of negotiations in order to leverage the best deal. The ideal time to complete negotiations is during the fourth quarter of the software provider’s fiscal year, when there are incentives to complete contracts. At contract execution, healthcare facilities should expect to pay out ten percent. Continued payments are made as benchmarks are achieved.
October 11, 2007 Related topics: Standards, IT & software