How to Improve Equipment Procurement and Management by Adopting LCC Method - LCC: A New Tool for Equipment Procurement Management

Abstract: The LCC management method originated in the 1960s and has been widely used in the defense and military fields, and rapidly spread to the government and civilian sectors. With a large number of high-tech medical equipments being put into clinical application one after another, the hospital's investment in equipments has increased dramatically, and consequently, the maintenance cost of equipments has increased substantially. How to rationally invest in equipment has become a long-term problem for hospital decision-makers, and the LCC management method can provide a better reference for hospital equipment procurement and management.

Using the LCC management method to guide the equipment procurement can make the equipment procurement decision based on a more scientific and reliable foundation and save the procurement funds. the LCC management method can also help the hospital to analyze the cost of the equipment that has been purchased and installed and used throughout the life of the equipment, to find out the key points of the LCC cost control, to extend the service life of the equipment through the preventive maintenance, and to carry out the repair and renewal decision of the equipment, which is more reasonable. The LCC management method can also help hospitals analyze the costs of equipment purchased and installed over the life of the equipment, identify key points for LCC cost control, extend the life of the equipment through preventive maintenance, make equipment repair and renewal decisions, and use the equipment more rationally.