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PubMed2002

Co-operative bidding of SMEs in health care sector.

Tendering become an important process for customers in the health care sector to select products and services from the market for the lowest price, with the highest quality and with the shortest delivery time. The number of SMEs (Small and Medium-sized Enterprises) delivering products or services for the health care sector is increasing, but they have usually limited capital and expertise to participate in tenders. The paper introduces a possible solution for this problem, when SMEs form special groups, so called Smart Bidding Organisations (SBO), to prepare a bid for the tender jointly. The SBO appears for the customer (tender issuer) as a single enterprise and the bidding procedure will be faster and less expensive in this way.

Competitive Bidding↗
PubMed2002

Investigating starting-point bias: a survey of willingness to pay for insecticide-treated nets.

The objective of this study was to investigate the existence of starting-point bias in the bidding game contingent valuation elicitation technique when determining the willingness to pay (WTP) for insecticide-treated nets (ITNs) and ITNs re-treatment in rural Nigeria. Of all existing contingent techniques, the bidding game most closely mimics the normal price taking behaviour in local markets in Nigeria. Three different starting-points (low, medium and high) were used to determine WTP for large and small ITNs, and for ITNs re-treatment, respectively. The respondents were randomly assigned to any of the starting-points and a pre-tested interviewer-administered questionnaire used to elicit WTP. Non-parametric tests and the Tobit model were used to analyse the data for evidence of starting-point bias. Plots of respondents' cumulative density functions by starting-points were also examined to show the pattern of responses. The non-parametric tests showed no statistically significant differences between the three starting points in WTP for large ITNs (p = 0.262) and for ITNs re-treatment (p = 0.412). However, there was a statistical significant difference in WTP for small ITNs (p = 0.045). Nevertheless, in this instance, the high starting point group had a lower mean WTP than the low group, and also had the lowest median WTP amongst the three groups. However, using the conditional WTP (only males), there were no differences among the three starting-points for all goods. The multiple regression analyses using the Tobit model confirmed the results of the non-parametric tests. The plots of cumulative densities were also similar for the three starting-points for the three products. However, the high starting-point group had those more willing to pay higher amounts for large and small nets. There was no conclusive evidence of starting-point bias. Future research is required in order to gain a deeper understanding on factors determining peoples' valuation of goods and services, reasons for any type of starting-point bias, and how the bidding game can be improved.

Adult↗
PubMed2002

Managed competition versus industrial purchasing of health care among the Fortune 500.

The theory of managed competition has found favor with many health policy analysts and academic economists alike. Three characteristics--consumer choice, defined contribution, and dissemination of information--signal managed competition strategy. By requiring private employers to provide their employees with a choice of health carriers, a fixed-dollar strategy (defined contribution), and quality information to make appropriate choices among carriers, managed competition offers to remedy imperfections in both the consumer and provider sides of the market for health insurance. In an extensive survey of health care purchasing practices among Fortune 500 companies we found that major companies are not using the managed competition approach to health care purchasing. Instead, most of the companies surveyed are purchasing health care in the same way as they do other inputs to production--a pattern we call industrial purchasing.

Community Participation↗
PubMed2006

Funding technology: evaluating and exercising the leasing option.

Tax-exempt capital leases, when structured through the appropriate conduit authority, are an excellent option for financing equipment that the hospital wants to own. Operating leases offer the benefits of immediate cash flow savings when compared with buying equipment, fewer complications and lower upfront costs when compared with bond issues, and the ability to match short-term assets with short-term liabilities. A best-practice leasing process involves nine steps progressing from assessing needs and soliciting bids from equipment manufacturers to implementing the lease and providing continuing disclosure.

Benchmarking↗
PubMed1990

Hospital materials managers need to be aware of actions that constitute legal acceptance.

A hospital invited bids for building materials for a hospital construction project. A supplier submitted a bid which asked the hospital to sign and return a trade association form contract. The hospital didn't return the form but used the supplier's bid as part of the general contract for the entire project and notified the supplier and the general contractor. Later, the supplier submitted a higher bid for the same material contending that the hospital hadn't accepted the first bid as they hadn't followed the instructions. The hospital materials manager feels that the bid was properly accepted. In this dialogue, Dr. Decker reviews the legal issues involved in the different ways of accepting an offer.

Commerce↗
PubMed1990

State Medicaid officials battle drug firms in war to cut costs.

As state Medicaid agencies struggle to cut costs for prescription drugs, their main tool has been the use of drug formularies--a state-approved list of thousands of drugs that the agencies will reimburse for the treatment of Medicaid patients. Now, states are trying to use a second method that could reap big savings: requiring drug companies to bid to be included in the formulary. However, both cost-containment strategies have attracted the pharmaceutical industry's attention--and their lobbyists.

Competitive Bidding↗
PubMed1991

Optimizing the service of contracted hospital laundries.

Linen processing is a significant but essential expense to hospitals. To minimize this expense, it may benefit may hospitals to consider processing laundry by either an outside commercial vendor or cooperative association. A comprehensive bid package is the cornerstone to such a relationship and will help ensure acceptable and cost-beneficial quality service to the hospital.

Bedding and Linens↗
PubMed2000

Could Internet benefits bidding help expand direct contracting?

While direct contracting with employers has never really caught fire among hospitals and physicians, a new use of the Internet in benefits bidding and negotiations might help providers expand the concept. For risk contractors, it holds out the promise of cutting out the HMO middle man, leaving higher capitation rates available.

Capitation Fee↗
PubMed2004

Managing under managed community care: the experiences of clients, providers and managers in Ontario's competitive home care sector.

In 1996, a newly elected government in the Province of Ontario, Canada, introduced a managed competition environment into the home care sector through the establishment of a competitive contracting process for home care services. Through 65 in-depth, semi-structured interviews conducted between November 1999 and January 2001, we trace the implementation of this competitive contracting policy within Ontario's newly established managed community care environment and assess the effects of competitive contracting against two sets of goals: (1). quality of care goals that consider continuity of care of paramount importance in the provision of home care; and (2). the managed competition goal of increased efficiency. In assessing the implementation of this policy against these goals, we highlight the conflicts that can arise in pursuing different policy goals in response to different formulations of the policy problem that underpin them. We map stakeholder experiences with the competitive contracting policy onto relevant contracting and managed competition literatures. When measured against the goals of quality of care and efficiency, the findings presented here offer a mixed review of the experiences to date with the competitive contracting process introduced in Ontario's home care sector and suggest improvements for managing future competitive contracting processes.

Attitude of Health Personnel↗
PubMedDate not supplied

Obstacles to employers' pursuit of health care quality.

Large employers' roles in improving health care quality are shifting away from value-based purchasing toward direct efforts to improve health care delivery within local markets. Although most large employers adopted the tools required for value-based purchasing, inadequate information on quality has frustrated employers and limited their ability to make choices based on quality. More recent quality initiatives aimed at directly improving local health delivery systems may be limited to specific markets where the largest employers can exert substantial influence.

Competitive Bidding↗
PubMed2001

Healthy-living centres. Nipped in the bid.

Applicants for healthy living centre funding can find the process very time-consuming. Fewer than 100 bids have been approved so far, from more than 1,000 applications. There are concerns about whether the projects will be taken on by primary care trusts once the lottery funding runs out.

Budgets↗
PubMed2001

Issues in bidding for contracts for occupational therapy services.

There is an increasing number of occupational therapists in Canada who are involved in bidding for contracts to deliver occupational therapy services. Occupational therapists working in an institutional or community-based setting may not have had the responsibility of developing a proposal or a marketing plan for bidding purposes. However, the responsibility of developing a bid to compete for a service delivery contract often rests on occupational therapists who are sole practitioners in a private practice setting. The purpose of this paper is to highlight issues in the literature such as service delivery plans, marketing strategies and costing of services that can assist the occupational therapist in the development of a contractual bid. A specific clinical example, school therapy services, has been used to illustrate how these strategies can be applied to practice. Success in contractual bids appears to be primarily influenced by cost of the service, the expertise of the service provider, ability to provide coordinated care, ease of access for clients, and inclusion of methods to measure client outcome.

Canada↗
PubMedDate not supplied

Selecting and managing a professional consultant to a clinical laboratory.

Managers of clinical laboratories, like those in other complex organizations, will often seek the advice of external professional consultants to provide solutions to current problems. Optimizing the process of selecting and managing consultants to clinical laboratories is the topic of this article. A number of practical tips are offered, including a discussion of the use of nontraditional consultants. Special emphasis is placed on developing a request for proposal and evaluating responses to the request for proposal by the various consulting firms bidding for the engagement. The use of consultants in the health-care arena in general and clinical laboratories in particular will undoubtedly increase as financial and organizational challenges to the industry continue to proliferate.

Competitive Bidding↗
PubMed2004

Identification of shareholder ethics and responsibilities in online reverse auctions for construction projects.

The increasing number of companies providing internet services and auction tools helped popularize the online reverse auction trend for purchasing commodities and services in the last decade. As a result, a number of owners, both public and private, accepted the online reverse auctions as the bidding technique for their construction projects. Owners, while trying to minimize their costs for construction projects, are also required to address their ethical responsibilities to the shareholders. In the case of online reverse auctions for construction projects, the ethical issues involved in the bidding technique directly reflects on the owner's ethical and social responsibilities to their shareholders. The goal of this paper is to identify the shareholder ethics and responsibilities in online reverse auctions for construction projects by analyzing the ethical issues for the parties involved in the process. The identification of the ethical issues and responsibilities requires clear definition and understanding of professional ethics and the roles of the involved parties. In this paper, first, the concept of professional ethics and social responsibility is described in a general form. To illustrate the ethical issues and responsibilities, a sample case of bidding for a construction project using online reverse auction techniques is presented in which the shareholders were actively involved in questioning the ethical issues. The issues involved in the bidding process and their reflection on the shareholder responsibilities are described and analyzed for each stage of the process. A brief discussion of the overall process is also included to address the general ethical issues involved in online reverse auctions.

Competitive Bidding↗
PubMed1988

Two viewpoints: the preparation of a request for proposal. Viewpoint #1.

The medical record practitioner is often faced with the need to select systems or services. The solicitation of proposals from a variety of vendors/contractors through the use of a Request for Proposal could be a useful mechanism for making such selections. The medical record practitioner will be in a more advantageous position for getting the best price if negotiating with multiple vendors rather than just one vendor. A vendor/contractor who is "bidding" may quote a price much lower than if the vendor/contractor is "selling." Additionally, the medical record practitioner has a better opportunity to select the system or service that is not only the best priced, but also more closely meets the organizational needs.

Commerce↗