Capital Asset Performer FAQs
Read the FAQs below for more information on the CAP Program or contact us to get started.
Does a hospital have to eliminate all of its service contracts, or may it choose to keep some current contracts?
Two factors may influence a hospital to retain coverage under existing contracts. First, some contracts are written so as to prohibit "early release" from the contract before the end of the contract period. ABGI's equipment survey process will assist the hospital in identifying such contracts. The hospital may still elect to add the equipment to the ABGI program when the other contract expires.
Second, it occasionally happens that ABGI finds the hospital holds a maintenance contract that is better or less expensive than we can charge. When that happens, we tell the hospital that, frankly and up front. (Do keep in mind that in almost all cases, the terms of ABGI's agreement are superior to any offered by a service contractor: we cover 24 hour a day, 7 days a week; we cover parts, tax, and shipping, as well as labor; our exclusions are detailed in the agreement and are few in number.)
If equipment fails during off hours, is ABGI accessible?
The hospital would normally proceed with calling for repair via its regular channels without having to reach ABGI ahead of time. We do ask to be notified beforehand in the case of repairs estimated to cost $10,000 or more, so that we may assist with alternate sourcing of costly parts. ABGI's normal hours of operation are 7AM - 5PM, Central Time, Mondays through Fridays, except holidays. However, the telephone is answered on a 24-hour-a-day, 365-days-a-year basis, and priority calls are routed on.
Does ABGI make payment for repair costs in a timely manner?
Service incidents which are received with correct and complete documentation at the ABGI Corporate office are settled within 30 business days.
Will ABGI agree to maintain all information pertaining to the hospital on a confidential basis?
ABGI agrees to maintain confidentiality in all of its dealings with clients.
Who has the final say on replacement parts, relating to specific manufacturers, etc.?
The hospital has final say on replacement parts, provided they are used in repair of covered equipment, are not explicitly excluded from coverage, and are required to restore equipment to normal operation.
In the case when a downtime situation is not safe or acceptable, will the ABGI program authorize or pay for loaners?
While we encourage and reimburse for prompt repair, ABGI's agreement does not cover payment for loaners.
We are concerned that if we join the ABGI program manufacturers will not respond to us with the same speedy, high priority service that a service contract assures. Is this common?
This is often a threat some manufacturers' representatives (not their corporate policies) extend. However, for practical reasons the contractor will provide service as good as if a contract existed. Service managers cannot afford to have their technicians sit around idle merely to spite a former contract holder, and they all do their best to honor service calls in the order they receive them.
This issue has not been a problem with our existing clients. On one occasion, a local service representative delayed service, but when the client brought the matter to our attention, we were able to easily work out the matter with the national sales manager, and the problem has not recurred. Manufacturers want to keep their technology within the hospital and it has been the experience of our clients that "service continues to drive sales."
Does the ABGI program provide for preventive maintenance (PMs)? What are the cost factors, and who pays these?
PM coverage is provided as an extra cost option. Since PM is a no-risk proposition, ABGI must charge the worst case price, which is usually that which the manufacturer's service representative charges. Only in those cases where the PM is performed by the in-house staff is this arrangement of much financial benefit to the hospital or to ABGI, but ABGI will accept the option if the hospital wishes to exercise it.
How does the hospital manage dual programs - the ABGI program on the one hand, and service contracts on the other?
Equipment which is included in the ABGI program is managed jointly by ABGI and the hospital. Equipment which the hospital chooses not to include under the ABGI program is managed in any manner the hospital chooses.
If equipment is removed from a service contract and added to the ABGI program but later put back on the service contract, will the manufacturer charge premiums or refuse to cover the equipment?
Virtually all manufacturers' contracts have a provision that the equipment must be brought to their published specifications prior to their acceptance of the contractual responsibilities for maintenance of the equipment. Indeed, this provision, plus a similar requirement for performance of PMs, is a prerequisite of ABGI's coverage. If the hospital maintains the equipment as agreed, there should be no reason a contractor would not agree to accept the equipment as is, since it should meet the required specifications as a matter of course.
In repairing electronic equipment, will ABGI agree to replace whole boards in order to avoid downtime during the equipment diagnosis process?
ABGI routinely pays for replacement of circuit boards, as opposed to discrete components, provided that the replacement is reasonable. For example, we would exclude wholesale replacement of all boards done in order to avoid troubleshooting, but if the trouble is traced to a particular board and replacement of a component is not practical in terms of time or expense, we do pay for the board replacement.
Under the ABGI program, who determines the quality and selection of the vendor or repair agent?
Our customer always makes the final decision about who will repair equipment. ABGI is always proactive to encourage use of in-house engineering professionals or technicians as a first response. When the work required is beyond their range of expertise, an outside vendor (an independent service provider or an agent of the original equipment manufacturer) is selected.
You strongly support "alternate sources" for parts. However, doesn't alternate sourcing extend the downtime encountered for a repair?
The sole purpose for alternate sourcing is to save money. Under ABGI's program, both the hospital and ABGI benefit from savings. In most instances, especially with high cost parts such as X-ray tubes, alternate sources provide them as quickly as a manufacturer's representative because they come from the same sources.
If the hospital determines that alternate sourcing is so time consuming that it cancels any cost benefit, then it may procure the parts from any desired source. Be aware that the hospital is provided information on alternate sourcing prior to a catastrophic event.
How is the ABGI program cost financed or paid by the hospital? Are we required to "pay up front"?
Three payment options are available, each in advance of the period chosen: 1) Semi-Annual - no discount and no interest charged; 2) Quarterly - which requires an interest fee derived from the current cost of funds; and 3) Monthly - also requiring an interest fee.
How did ABGI arrive at the purchase prices of equipment as presented in the proposal?
Purchase prices ordinarily are furnished by the hospital, taken from such sources as a capital asset depreciation schedule or insurance records. When the hospital does not know how much it paid for an item, ABGI consults our extensive database (over 60,000 items) for prices of the same manufacturer and model of equipment. The purchase price becomes the limit of liability under the terms of the agreement, so it is important that the hospital ensure the correct amount is entered.
Does the ABGI program require a substantial increase in paperwork (preparing incident documentation, etc.)? If so, does ABGI assist in handling the increased workload and costs involved?
The amount of additional work required depends largely upon the complexity of the hospital's repair processing and accounting system. Many ABGI clients assign the handling of paperwork involved with the ABGI program to an existing full-time equivalent. In some cases, ABGI arranges to provide clerical assistance to the hospital at no additional charge to the facility.