CMEPP - FAQ

Frequently Asked Questions (FAQ)

Who Owns CMEPP?

CMEPP is owned and directed by its participating hospitals on a pro-rata basis.

What makes CMEPP a different maintenance alternative?

The CMEPP Program operates for and reports to its Participants. The risk of high cost repairs is spread across all Participants, thus reducing the exposure to an individual hospital. All investment interest and funds accumulated by the program remain the property of the program and are available for distribution to the Participants.

How Much Does it Cost to Join CMEPP?

There is no cost beyond the contribution made to the program for the equipment that is included in your CMEPP coverage.

How does the CMEPP Program operate?

Hospitals that participate in CMEPP pool together their maintenance funds associated with the preventive and remedial maintenance services on equipment entered into the program. CMEPP uses this pool of funds to pay the vendors' invoices. At year-end, after all program expenses have been settled, funds surplus to the program's needs are returned to the Participants in the form of cash and equity ownership in CMEPP.

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When a surplus exists, who decides when and how it will be distributed?

The CMEPP Board of Directors approves the distribution of surplus funds at the end of each operating year. This approval is provided after the program's records have been fully audited. The distribution generally occurs 90 days after year-end.

How does CMEPP account for the Hospital's funds?

Routine reports are issued to the Participants showing the actual costs of services provided by the service provider. Detailed equipment reports are also sent to all Participants and customized reports are available upon request. All reports are available in both hard copy and electronic format.

What is equity ownership?

CMEPP has developed a long-term stabilization fund for the protection of all Participants. This fund has been totally funded from a portion of prior years' surplus amounts and is owned on a pro-rata basis by the Participants. The amounts in the fund are held to pay for extraordinary expenses in any given program year. If a Participant was to withdraw from the CMEPP Program, they would be refunded their portion of the Program equity plus accumulated interest.

What is CMEPP's Operating Year?

CMEPP operates on the same fiscal year as the Hospitals', April 1st to March 31st.

How flexible is the CMEPP Program?

CMEPP's programs are customized for each Participant to match the equipment covered by the program and to meet the coverage requirements of the Participants. The Participant, in consultation with CMEPP, decides upon the level of equipment coverage.

How safe are the funds placed with the program?

CMEPP maintains full financial records of all monies received by the program. Our Program is externally audited by a well-recognized accounting firm each operating year. Audited financial statements are provided to all CMEPP Participants.

Who will be providing my service and how are they paid by CMEPP?

Under the CMEPP Program, hospitals select the service vendor. In most cases these are the same companies currently providing service on your equipment. CMEPP issues blanket purchase orders for all equipment covered by the program. The service vendor issues their invoice to CMEPP on behalf of the hospital. CMEPP issues a payment directly to the vendor on behalf of the hospital.

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