Capital Asset Management Program (CAMP)
The CAMP program is designed to provide University Healthsystem Consortium, UHC member hospitals with an equipment maintenance strategy that is managed by a multi-disciplinary and funded through a maintenance account at UHC. The UI Hospitals and Clinics objective is to immediately reduce maintenance costs on equipment currently covered by service contracts, while each UHC member evolves to a self insured time and material maintenance status. Most users of this program have saved an estimated 15 percent of their maintenance costs.
Introduction:
- CAMP activities will be reported to the Safety Subcommittee through the Equipment Management Committee quarterly report.
- The Equipment Management Committee will oversee the CAMP program.
- The CAMP Program, a Value Analysis Program project, has the support of the Clinical Enterprise.
- The program is coordinated through Rick Borchard, BioMedical Engineering, and Rod Radenbaugh, Facilities Services, managing the logistics.
Advantages to belonging to CAMP:
- UHC has a large database of national contracts to use for evaluation of member cost for the same service. They offer benchmark comparisons.
- Initial CAMP premium to each department contract is 85 percent of current service contract expense. Note the attachment that explains the Premium Breakout.
- The Hospital Loss Pool, 67 percent of CAMP premium is used to pay services vendors for time and material repairs. All unused Hospital Loss Pool funds including interest are returned annually. Typically refunds run 20-40 percent. The next annual CAMP premium is reduced by 50 percent of the refund.
- Group Loss Pool, 25 percent of CAMP premium, is funded by all CAMP members and is available to pay for the occasional bad year. The Group Loss Pool is rarely tapped and after two years subsequent CAMP premiums are reduced by the 25 percent. The value of the Group Loss Pool is proportional to the member’s total CAMP premium and refunds to a specific member including interest maybe realized. The goal of UHC is to refund 100 percent of the Group Loss Pool to fund the members self-insured program.
- Stop loss insurance is used to purchase insurance to cover a catastrophic year. After two years this insurance is dropped. There is no refund for the cost of this insurance.
- UHC Administrative Fee, 3 percent of CAMP Premium, covers UHC expenses which include a valuable national benchmarking of the quality and cost of service vendors derived from CAMP members service reports. Because of CAMP’s growth this fee is going to be reduced to 2 percent. There is no refund on these fees.
- All service contracts that apply and are in the CAMP program will be approved and budgeted. The Equipment Management committee can pick and choose which items of equipment or maintenance agreements we wish to include in CAMP.
- When needed, a repair vendor performs the maintenance for time and materials. The expense is entered into the CAMP database. UHC will send us a report after each maintenance event.
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