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About CMEPP The Canadian Medical Equipment Protection Plan, CMEPP, is a medical equipment maintenance management program that provides savings on the maintenance of sophisticated diagnostic and therapeutic equipment for Canadian Hospitals. Our program operates on a not-for-profit basis and offers Participants an alternative to expensive maintenance contracts and commercial maintenance insurance programs. Participants contribute their maintenance funds to a “Pool”. These funds are then used to pay for preventive and remedial maintenance services as well as the administration of the CMEPP program. Our Participants benefit from the expertise of the Clinical Engineering Departments of Canadian Teaching Hospitals who provide their technical support and advise on equipment maintenance. We provide the following:
CMEPP assists its Participants in managing and reporting on the total cost of equipment ownership. Our Participant Hospitals agree to contribute their financial resources to a “Pool” to pay for both preventive and remedial maintenance services on items covered by the program. The contributed amount represents a savings versus OEM Maintenance agreements for similar coverage. On behalf of the Participant, CMEPP issues purchase orders and directly pays invoices submitted by the Hospital-selected service vendors. Through our pooled program we spread the risk of high cost repairs across all of our Participants. As the number of Participants in the program increases, the risk to each individual member declines. The pooled funds are invested in safe, conservative investments. Investment
interest is returned to the Participants and is used to offset program
administrative costs. Full financial disclosure is provided to our
members and comprehensive reports are distributed showing how individual
hospitals' contributions to the program are used. CMEPP operates on
the hospital fiscal period and is externally audited each program year.
In
the early 1990’s the Toronto Academic Health Science Council
provided a grant to the Directors and Managers of Clinical Engineering
from the hospitals associated with the University of Toronto’s
School of Medicine. The grant was provided to investigate and develop
means of saving hospitals money on the maintenance of their sophisticated
medical equipment and systems. The CMEPP program was founded in 1996.
For the first three years of operation, CMEPP carried coinsurance
from a commercial insurer to limit any losses. This period provided
us with the insight that we required to convert the program to a
fully self-insured and managed program in 1999. Since 1999, CMEPP
has operated as a standalone Participant owned program. Founded in 1987, the Healthcare Insurance Reciprocal of Canada has grown to become the largest health care liability insurer in Canada. HIROC’s programs are focused on medical liability insurance and property coverage for health care facilities. HIROC’s subscriber base currently exceeds 450 health care facilities such as hospitals, nursing homes, and community health centres. To learn more about HIROC, please click here. As CMEPP was designed, we looked for successful programs already in
existence from which we could model our program. CMEPP shares office
facilities with HIROC and purchases some services for the operation
of the CMEPP program.
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