The Situation
A regional health system contracts with a biomedical equipment service provider for maintenance across four hospital facilities (880 beds total). The agreement covers preventive and corrective maintenance, emergency response, and specialty parts for diagnostic imaging. It includes performance-based credits for uptime SLA misses, PM completion shortfalls, and response-time failures. The facilities team reviews monthly service reports but had never filed a claim for any performance credit despite documented service gaps.
Value-Claiming Clauses
Section 3.5
Annual Spend Rebate
4% rebate on total annual spend exceeding $900,000. Due within 60 days of year-end.
Section 4.2
Equipment Uptime SLA
Tiered credits (10%/15%/25% of monthly service fee) when aggregate uptime falls below 99.5%.
Section 4.3
PM Completion Penalty
$8,000 credit for any quarter where preventive maintenance completion falls below 95%.
Section 4.4
Emergency Response Time Credits
$2,500 credit per incident where Critical Equipment emergency response exceeds 2 hours.
What the Analysis Found
52 monthly transactions were analyzed — service fees, overage labor, specialty parts, and emergency call records. Monthly uptime, quarterly PM rates, and individual response times were cross-referenced against contract thresholds.
Equipment Uptime SLA Credits
Two months below 99.5%: April at 98.8% (10%) and October at 97.5% (25%).
$28,000
PM Completion Penalty
Q3 preventive maintenance completion was 93%, below the 95% threshold.
$8,000
Emergency Response Credits
Three emergency calls exceeded the 2-hour commitment (February, June, November).
$7,500
Annual Spend Rebate
Total annual spend of $1.01M exceeded the $900K threshold by $111K.
$4,450
Total Uncaptured Value
$47,950