SMART Contract

In either your own or selection or during the latter stages of the SMART Selection process, we negotiate contracts simultaneously with up to two finalist vendors. We develop detailed, “apples-to-apples” 7-year cost comparisons that include all operating and one time costs with estimated annual price increases. We compare price and language against our national database of all previously negotiated agreements. Knowledge is the key to successful negotiation. 

While we cover a broad milieu of contractual issues, several themes will be key to evaluating vendor responses and, eventually, to selecting the vendor-of-choice:

  • Sharing of risk based on performance
  • Support standards and longevity
  • Commitment to timely regulatory compliance
  • Payments tied to successful delivery milestones
  • 60-day contingency period
  • Well-planned and staffed implementation project
  • Flexibility for the hospital to grow
  • Price protection
  • Vendor discounts appropriate to the size/complexity of the purchase.

CharlesRiver Advisors will develop worksheets to compare vendor costs, including the hidden costs that we have learned vendors sometimes down-play in their proposals, such as training “tuition”, travel costs for remote installers, software modification charges, file conversion fees to their format, costs for 3rd party vendors' side of an interface to the HIS, etc. It is not unusual for the cost to initially appear higher on our worksheets since we tend to account for more costs.

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hospital information software system

CharlesRiver Advisors assisted us with contract negotiations between our two final vendors.

Their expertise in negotiating the contract terms was immeasurable. We not only saved time and money but received contract protections that we could never have negotiated on our own.

Highlands Hospital

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