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3 Equations for Assessing the Health of Your HTM Program


Can you say without any hesitation that your hospital’s Healthcare Technology Management (HTM) program is working optimally? If not, why not? After all, this is the program that takes care of the equipment that your providers rely on to give the best possible patient care.

Top-performing programs can quickly and easily generate the information administrators need to monitor performance and make critical adjustments, particularly in the face of unforeseen events, like the COVID-19 pandemic. Unfortunately, too many hospitals use unreliable and reactionary methods to assess their program’s vitality, followed by unspecific industry benchmarks for comparison.

In collaboration with our top industry organization, the Association for the Advancement of Medical Instrumentation (AAMI), our TKA team developed three important equations that provide a modern and proactive approach to measure the health of your HTM program. Each formula identifies the key metrics in driving success and generating valuable insight for where to focus your improvement efforts.

  • Insource-Outsource Ratio: In this case, you’re comparing the amount of your HTM program’s total internal cost allocations against the costs you outsource to external partners and operations. Maximizing money kept within the program translates directly to improved cost savings, not to mention helps you avoid other costs.
  • Device Uptime Formula: Regardless of whether you’re measuring the time a piece of equipment is functioning, or the time when it is not, your hospital needs to be keeping an eye on the available usage of its critical equipment.
  • Cost of Service Calculator: This approach gives you the total program cost as a performance of program value. You can run this calculation based on your equipment’s acquired value, fair market value, or retail value, with each of these metrics having its own advantages and drawbacks. What’s more important is using the same value across all costs and over time.

The bottom line to these calculations, which rely on gathering the proper data, is parsing out how effectively your HTM serves your financial goals. Most outsourced HTM partners will boast about the cost savings they can deliver, but the best programs excel at cost avoidance for the hospitals they support.


Knowing your HTM program’s cost delivers critical insight into how efficiently and effectively your program is working. However, you can’t stop there: You need to take this information a step further and gauge how your program compares to industry benchmarks. We provide greater insight into each of these calculations and targeted performance measures in our latest white paper, Effective Health Technology Management Program Analysis: Three Equations to Measure the Health of Existing HTM Programs. Click to learn how to get a clearer financial picture of your hospital’s HTM program.


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