SELECTplus QUOTATION ANALYSIS Date: 08/18/2005 Contact: John Smith Facility: Plymouth Health System City: Plymouth Meeting State: PA Phone: 610-825-6000 Fax: 610-567-1111 E-Mail: firstname.lastname@example.org Device: Analyzers, Laboratory, Hematology, Cell Counting, Automated Vendor: Beckman Coulter Inc Model: LH 750 Slidemaker Total Potential Cost Savings = $5,170.70 on reagents over the term of the agreement THE BOTTOM LINE • Negotiating for the lowest reagent pricing seen in our database would save you an additional $1,034.14/year or $5,170.70 over the term of the agreement. • We recommend you negotiate for reagent prices to remain unchanged (price protected) for the term of the agreement, or at the very minimum, for prices to remain unchanged for the first three years of an agreement with the price increase not to exceed 3% or the CPI, whichever is less. • We strongly recommend you negotiate for shipping terms FOB destination, with all costs prepaid and absorbed by Beckman Coulter. • We have seen Beckman Coulter offer 24x7 service on the LH 750 at no additional cost for the first year of an agreement. We recommend you negotiate for this same price concession. • A search of our Health Devices Hazards/Recalls database did not find any recent hazards, recalls, or problems with the equipment. PRICE ANALYSIS FOR: Plymouth Health System Quoted Price: $227,500.00 Reason: Multi-unit List Price: $610,000.00 Units: 4 Quoted Discount: 62.7% Beckman Coulter has offered Plymouth Health System the outright purchase of (2) LH 750 Hematology Systems and (2) LH Slidemakers for $227,500. The pricing extended to your facility represents a discount of 62.7% off the list price of $610,000. According to our PricePaid Database, similar purchases within the past year have been discounted between 46.2% and 62.7%, with an average discount of 55.8%. Your facility has also been offered a 5-year reagent agreement for the equipment listed above. According to our PricePaid Database, Beckman Coulter has offered lower reagent pricing on similar purchases within the past year. The following table indicates your facility’s potential savings on reagents per year: Database Potential Catalog No. Description Qty Quoted Price Low Savings/Year LH 700 Series $24.70 8547194 678 $24.19 $345.78 Diluent LH 700 Series $138.23 8547195 94 $133.21 $471.88 Pak Lyse S III Diff $366.80 8547189 28 $359.14 $214.48 (case) $45.65 8546931 Clenz 10L 40 $45.60 $2.00 Negotiating for the lowest reagent pricing seen in our database would save you an additional $1,034.14/year or $5,170.70 over the term of the agreement. Reagent pricing varies depending on the following considerations: • the hospital volume • the type of acquisition (outright purchase, lease, reagent rental, cost per test, cost per billable test, etc.) • the duration of the contract (36, 48, 60, or 72 months) • if the instrument will be acquired through fairmarket buyout or $1 buyout at the end of the contract • the type of service provided (24hr/7day, M-F 8AM-5PM, or Preventive Maintenance only) • if service is included for the duration of the contract or purchased separately • if service will be purchased at the point of sale for multiple years • if the reagent prices will be price protected for the term of the contract • if there is an inflationary increase after a period of time (e.g. level for years 1 through 3, with percent increases in remaining contract years) • if there is a cap on inflationary increases and how much (typically the CPI, but sometimes as high as 5%) • if the facility has other instrumentation from the same manufacturer in other hospital departments (vendor presence). Before accepting any reagent pricing, we suggest: • you request list and discounted prices for instrumentation, service and reagents for an outright purchase option in addition to a lease or reagent agreement. Reagent pricing for lease or reagent agreements should have the price per test broken down into instrumentation, reagent, consumable and calibrator costs and service costs (if included). • you negotiate for the vendor to absorb any costs over that indicated by the representative, except for those due to increased testing. This protects your facility in the event the representative has underestimated your test load or reagent usage. • you request annual or semiannual review of your test load. This protects your facility in the event your volume fluctuates significantly (±5%). Higher volumes typically provide lower price per test costs. • if you have an increase in test volume, you should negotiate to be charged only the reagent test cost for any volume over 5% of the current volume. This avoids paying more than the negotiated amount for the instrument and service. • you negotiate for reagent prices to remain unchanged (price protected) for the term of the agreement, or at the very minimum, for prices to remain unchanged for the first three years of an agreement with the price increase not to exceed 3% or the CPI, whichever is less (the average CPI is 3%, currently the CPI is 4.0%). • If prices cannot be protected for the agreement term, we recommend you negotiate for ONLY the reagent portion of the CPT to be increased. This avoids paying more than the negotiated amount for the instrument and service. THE COMPETITIVE EDGE Creating competition is a way to increase your negotiating leverage. Therefore, we recommend that you emphasize to Beckman Coulter that other vendors are being considered. Abbott and Sysmex would be your facility’s best alternatives for comparable hematology analyzers. If other vendors offer your facility a better discount and/or lower price, Beckman Coulter will more than likely be compelled to match it. If you haven’t done so already, we strongly recommend that you request proposals from other vendors in order to create a competitive situation, which will ultimately increase your bargaining power. Beckman Abbott Sapphire Sysmex XE-2100 Coulter LH 750 Financial Where Marketed Worldwide Worldwide Worldwide FDA Clearance Yes Yes Yes List Price $180,000 $195,000 $225,000 System Specifications Cycle Time (sec) Approximately 34 35 <=150 105 CBC/diff, 110 40 CBC/diff/NRBC, Samples/Hour 106 (CBC and diff) CBC, 55 60 CBC/diff/Retic CBC/diff/ret Closed -Tube Sampling Yes Yes Yes Start-Up Time (min) <4 5 4 Test Menu Standard menu Standard menu plus: RDW, MPV, Standard menu plus: RDW, MPV, retic #&%, IRF, plus: NRBC %&#, NRBC #&%, retic graded RBC retic %&#, RDW- Chartable #&%, IRF, CD61 morph., NRBC CV, IRF, Plt-O, (immuno-Plt), %&#, TNC & RBC HPC#, MPV, IG%, CD3/4, CD3/8 on CSF, synovial IG# (immuno T-cell) and serous fluids #&% for segs, bands, IG, blasts, variant lymph, Laboratory NA NA PDW, PCT, white cell viability faction (WVF) User-definable age, gender or location Plt clumps, RBC based ref., agglut., turbidity, intervals, action and Band, IG, blast, WBC ABN critical limits, user- variant lymph, scattergram, RBC definable RBC nvWBC, rstRBC, AN distrib., Plt ABN morph., gradient Flags IR, Plt clump, distrib., RBC lyse msgs. (=+, ++, ASYM, high/low resistance, blasts, +++); interp. msg., PCT, left shift, atyp. userselectable PDW lymph., ABN sensitivity for diff. lymph/blast, ret. abnormal ABN scattergram population suspect messages Methodology Linearity WBC Count (10ˆ9/L) 0-250 0-400 0-170 RBC Count (10ˆ12/L) 0-8.0 0-8.0 0-8.0 Hemoglobin (g/dL) 1.0-25 0-25 0-25 Platelet (10ˆ9/L) 0-2,000 0-3,000 0-5,000 MCV (fL) or Hct (%) 37-197 (MCV) 50-200 (MCV) 0-60 (Hct) Precision WBC Count 2.50% 1.70% <3% RBC Count 1.50% 0.80% <1.5% Hb 1% 0.80% <1% Platelet 4% 3.30% <4% MCV or Hct 1.0% (MCV) 0.8% (MCV) <1% (Hct) Interfering Substances Unusual RBC abnormalities that Cold agglutinins, Plt Lyse-resistant resist lysing, NRBC, aggreg., nucl. With WBC RBCs, Plt clumps frag. WBC, unlysed RBCs, cryoglob., particle >35 fL, lyse-resistant RBCs large Plt Autoagglutinins, cold agglutinins, Cold agglutinins, hemolysis, small severe Very high WBC, leukocytes (in microsytosis, frag., With RBC high conc. Large cases where RBCs, large Plt, autoagglutinins leukocyte count is number giant Plts, high [>100 K/uL] in vitro hemolysis and MCV is high) MCV: in vitro Hct: cold hemolysis, MCV and Hct: very agglutinins, autoagglutinins, high WBC, high leukocytosis With MCV or Hct cold agglutinins, conc. large Plt, (>100,000/uL), ABN hyperglycemia, autoagglutinins red cell fragility, leukocytosis with spherocytosis macrocy, Anemia Plt clumps, WBC & RBC fragments, Pseudothrom., Plt Very small RBCs microcytic RBCs, aggreg., incr. With Platelet and WBC frags. autoagglutinins, microcytosis, may interface cold agglutinins, Plt megalocytic Plts satellitosis High lipids (>700 mg/dL), high WBCs Lipemia, ABN Very high WBC, (>250 K/uL, based proteins in blood severe lipemia, With Hb on concentrated plasma, severe heparin, rare lyse- normal WBCs), leukocytosi resistant RBCs high bilirubin (>33 (>100,000/uL) mg/dL) Age/Sex Specific Reference Yes Yes Yes Ranges Max CBCs Per Hour 106 105 150 Tube Sampling Supported Yes Yes Yes Microsample Capability Yes Yes Yes Min. Specimen Volume Open Volume 112.5 uL 200 uL 130 uL Closed Volume 112.5 uL 300 uL 200 uL Dead Volume 387 uL 1 mL 1 mL Yes, only with Prepares Slides Automatically/ Yes, flags only Yes for both Alpha or HST Flags Problems upgrade Data Management Archives Patient Data for Later Yes Yes Yes Comparison Patient-Specific Archiving Yes Yes Yes Saved Results Can Be Yes Yes Yes Recalled and Retransmitted Performs Delta Checks Yes Yes Yes LIS Interface Formats Proprietary RS-232; Proprietary RS-232C/TCP IP Supported Maintenance Daily 30 sec None 15 min (walkaway) Weekly 5 min None NA Monthly 10 min 2 minutes NA Onboard Maintenance Records Yes Yes Yes Onboard Diagnostics Yes Yes Yes Can Perform Diagnostics Via With Abbott-Link Yes Yes Modem SUMMARY OF HISTORICAL DATA Total Records: 5 Total Units: 12 Quoted Price/Unit: Average High Low Std Dev $70,337.50 $104,838.00 $54,937.50 $19,605.20 List Price/Unit: Average High Low Std Dev $161,125.00 $195,000.00 $135,875.00 $24,595.63 Discount/Unit: Average High Low Std Dev 55.8% 62.7% 46.2% 7.8% The records we have selected for the historical data set were chosen from the most recent records in our Price Paid Database. The equipment in these records matches your hospital's configuration as closely as possible and any significant differences have been noted below the individual records. HISTORICAL DATA Record ID# 149535 Quoted Price/Unit $104,838.0 Reason: Promotional, GPO List Price/Unit $195,000.0 Units: 1 Discount 46.2% Discount After trade-in: 0.0% Catalog No. Description Qty Quoted Price Model LH 750 1 $104,838.00 6605731 LH 750 System 1 $104,838.00 Inclusion Summary: Beckman Coulter 60-month agreement LH 750 Hematology Analyzer No reagent pricing listed on quotation Agreement requires a security deposit of $4,300 Includes customer training for two (lodging, videos), LIS interface allowance of $6,000. One year warranty included; service for years two and three included in cash down payment. Five day standard business hours service for years four and five is required at $13,944 per year. Record ID# 155634 Quoted Price/Unit $72,750.0 Reason: GPO List Price/Unit $195,000.0 Units: 1 Discount 62.7% Discount After trade-in: 0.0% Catalog No. Description Qty Quoted Price Model LH 750 1 $72,750.00 6605731 LH 750 System 1 $72,750.00 8547196 LH 700 Series Retic Pak 14 $167.64 624519 FP, S-Cal, 2x4.2mL 2 $73.60 8546983 Lyse S III Diff (6x1L) 4 $72.28 8546931 Clenz 10L 17 $48.50 7547125 Retic-C 24 $139.38 8547194 LH 700 Series Diluent 173 $25.73 7546915 Latron Priming Solution 11 $47.74 7546914 Latron Control 11 $115.63 8547195 LH 700 Series Pak 26 $141.67 7547116 5diff Ctrl TriPak 24 $195.98 8547189 Lyse S III Diff (case) 8 $378.04 Inclusion Summary: Beckman Coulter Outright purchase with 60-month reagent agreement Agreement requires a security deposit of $4,300 One year PROService Warranty on parts, labor and travel during normal business hours is included. Customer must purchase standard business hours warranty in years 2-5 at $14,515/yr or $967.67/month. Includes installation and off-site training for two people Reagent pricing listed as Kits/yr and $/kit Total annual kits/yr 344 Total annual commitment $24,612.52 Interface credit of up to $6,000 included Record ID# 156868 Quoted Price/Unit $54,937.5 Reason: Multi-unit, Promotional, GPO List Price/Unit $135,875.0 Units: 4 Discount 59.6% Discount After trade-in: 0.0% Catalog No. Description Qty Quoted Price Model LH 750 2 $390,000.00 7547116 5diff Ctrl TriPak 24 $186.18 8547189 Lyse S III Diff (case) 29 $359.14 6605505 Glwr, Custom, slide 160 $28.13 2016733 SlidMaker Slide Labels 16 $24.38 7546914 Latron Control 22 $109.85 8547195 LH 700 Series Pak 71 $134.59 624519 FP, S-Cal, 2x4.2mL 4 $69.92 6605633 LH Slidemaker 1 $110,000.00 8546931 Clenz 10L 37 $46.07 7547125 Retic-C 48 $132.41 6605705 Ac*T 5 Diff- CP Hematology System 1 $43,500.00 8547194 LH 700 Series Diluent 702 $24.44 7546915 Latron Priming Solution 22 $45.35 2016732 SlideMaker Printer Ribbon 4 $10.60 6605731 LH 750 System 2 $390,000.00 8547196 LH 700 Series Retic Pak 29 $159.26 8546796 Lyse S III/D5L 41 $309.78 Inclusion Summary: Outright purchase of (1) LH 750, (1) LH Slidemaker and (1) Ac*T 5 Diff with 60-month reagent rental LH750 includes installation and off-site training for two Ac*T includes installation and on-site training LIS interface credit of $16,000 LH750 includes one year 24x7 service Ac*T includes one eyar 5 day a week service Customer may purchase service for all three instruments at $50,080/yr (9.2% of list price) Reagent pricing listed as kits/yr and $/kit Freight waived on shipment of reagents Reagents are priced protected for term Record ID# 159896 Quoted Price/Unit $85,570.7 Reason: Multi-unit, Bundle List Price/Unit $166,666.7 Units: 3 Discount 48.7% Discount After trade-in: 0.0% Catalog No. Description Qty Quoted Price Model LH 750 2 $256,712.00 6605633 LH Slidemaker 1 $110,000.00 6605731 LH 750 System 2 $390,000.00 Inclusion Summary: Beckman Coulter Purchase and lease options for acquistion of (2) LH 750s and (1) LH slidemaker FMV monthly lease payment $5,339.61 ($320,376.60 over term) $8,500 per unit interface credit LH750 w/Slidemaker business hours service $17,796.24/yr Record ID# 159816 Quoted Price/Unit $63,333.3 Reason: Multi-unit, GPO List Price/Unit $166,666.7 Units: 3 Discount 62.0% Discount After trade-in: 0.0% Catalog No. Description Qty Quoted Price Model LH 750 2 $390,000.00 7546914 Latron Control 16 $108.72 8547195 LH 700 Series Pak 63 $133.21 2016733 SlidMaker Slide Labels 8 $16.30 7547116 5diff Ctrl TriPak 40 $184.27 8546796 Lyse S III/D5L 32 $306.61 8547196 LH 700 Series Retic Pak 28 $157.63 2016732 SlideMaker Printer Ribbon 2 $24.38 6605731 LH 750 System 2 7546915 Latron Priming Solution 14 $44.89 8547194 LH 700 Series Diluent 544 $24.19 8546931 Clenz 10L 37 $45.60 7547125 Retic-C 24 $131.06 6605633 LH Slidemaker 1 624519 FP, S-Cal, 2x4.2mL 6 $69.20 Inclusion Summary: Beckman Coulter (2) LH 750 and (1) LH Slidemaker Includes installation and off-site training for two LIS interface credit of $12,000 One year warranty on parts, labor and travel Additional service for LH750 $13,944/yr/unit Additional service for LH Slidemaker $2,808/yr/unit Reagent pricing listed as kits/yr and charge/kit SERVICE CONTRACT Service contracts for clinical equipment typically cost between 8% and 12% of the system’s list price per year. Your facility has been offered extended PROService in years 2-5 at an annual cost of $33,264. The pricing extended to your facility represents 5.4% of the equipment’s total list price and falls below the typical pricing range seen for this equipment. We have seen Beckman Coulter offer 24x7 service on the LH 750 at no additional cost for the first year of an agreement. We recommend you negotiate for this same price concession. USER EXPERIENCE A search of our Health Devices Hazards/Recalls database did not find any recent hazards, recalls, or problems with the equipment. FAIR MARKET VALUE FMV depends on many factors, including the age and condition of the instrument, the marketshare of the vendor in that technology, if the instrument has been kept current with hardware and software upgrades and enhancements, if the instrument is still manufactured, and if it is not, if it is still being supported by the manufacturer for parts and service and, most importantly if the technology of the instrument is still current and not obsolete. Many manufacturers will provide an estimate of the instrument FMV at the time of contract signing and many manufacturers base the FMV of an instrument on the quoted price, not the list price. SELECTplus MEMBER INTEREST SELECTplus Member Interest Abbott Sysmex 20% 10% Roche ABX Inc Abbott 13% 2% ABX Inc Bayer Beckman Bayer 5% Roche Sysmex Beckman 50% *The interest chart is a representative of data generated by requests for quotation analyses provided by SELECTplus member hospitals within the past 12 months. VENDOR PROFILE Company: Beckman Coulter Inc Address: 4300 N Harbor Blvd PO Box 3100 Fullerton, CA 92834-3100 United States Phone: (714) 871-4848 Toll Free: (800) 742-2345 Fax: (714) 773-8283 Toll Fax: (800) 643-4366 E-Mail: email@example.com Web Site: http://www.beckmancoulter.com General Information Company type: Manufacturer and exporter Distribution: Sells directly, through dealers, and through manufacturer representatives Ownership: Publicly owned Total sales: $2,600,000.00 Fiscal year: January-December Employees: 10000 Products formerly sold under: • Beckman Instruments Inc  • Coulter Corp  • Beckman Instruments Inc Diagnostic Systems Group  • Coulter Electronics Cooperation  • Beckman Instruments Inc Altex Div  • Coulter Diagnostics Div Coulter Corp  • Coulter Cytometry Div Coulter Corp  • Beckman Electronic Instruments  ALTERNATIVE VENDORS Company: Abbott Laboratories Diagnostic Div Address: 100 Abbott Park Rd Abbott Park, IL 60064-3500 United States Phone: (847) 937-6100 Fax: (847) 938-5759 Web Site: http://www.abbottdiagnostics.com Company: Bayer HealthCare (US) Diagnostics Div Address: 511 Benedict Ave Tarrytown, NY 10591-5097 United States Phone: (914) 631-8000 Toll Free: (800) 255-3232 Fax: (914) 524-2132 Web Site: http://www.bayerdiag.com Company: Roche Diagnostics Corp Address: 9115 Hague Rd PO Box 50457 Indianapolis, IN 46256 United States Phone: (317) 521-2000 Toll Free: (800) 428-5074 Fax: (317) 521-4696 Web Site: http://www.roche-diagnostics.us Company: Sysmex Corp of America Address: One Nelson C White Pkwy Mundelein, IL 60060 United States Phone: (847) 996-4500 Toll Free: (800) 379-7639 Fax: (847) 996-4559 E-Mail: firstname.lastname@example.org Web Site: http://www.sysmex.com TECHNICAL CONFIGURATION Catalog No. Description Qty Quoted Price LH 750 2 Slidemaker 2 624519 FP, S-Cal, 2x4.2mL 4 $67.83 7546914 Latron Control 22 $105.27 7546915 Latron Priming Solution 22 $43.74 7547116 5C Tripak 12x3.3ml 24 $162.10 7547125 Retic-C 48 $115.65 8546931 Clenz 10L 40 $45.65 8546983 Lyse S III Diff (6x1L) 8 $70.19 8547189 Lyse S III Diff (case) 28 $366.80 8547194 LH 700 Series Diluent 678 $24.70 8547195 LH 700 Series Pak 94 $138.23 8547196 LH 700 Series Retic Pak 29 $147.25 PROService Warranty One Year 1 If you have any questions or require additional information, please do not hesitate to call me, Adam Fraundorfer at (800)998-3274 x5378 or email me at email@example.com. In addition, when you complete your purchase negotiations, please send us a copy of the final purchase order/quotation so we can update our price paid database. Your hospital's identity, of course, will be kept confidential. DISCLAIMER The member agrees to hold in strict confidence SELECTplus Custom Analyses, as well as the content of the other Products and Services offered under the SELECTplus Agreement, using them only for their intended purpose and within its own institution, and shall not transmit them to or share them with third parties without the prior written permission of ECRI in each instance. The provisions of this clause shall survive expiration or termination of this Agreement. In the event that member uses or attempts to use the Custom Analysis, or other SELECTplus Products and Services, in a manner that is contrary to the terms of the SELECTplus Agreement, it may result in an automatic termination of the usage rights granted herein and will give ECRI the right (in addition to any such remedies available to it) to injunctive relief enjoining those acts, it being acknowledged that legal remedies are inadequate.