I got to make my first capital expenditure yesterday and I wasn’t even in the office to enjoy it. Part of my job is managing and maintaining the hardware and software for a physicians practice. This is half of the start-up because it pays the bills and pays for insurance while we try to grow a fledgling startup. On Monday, the scanners stopped working. It turns out that we purchased some scanning software that takes TIFF/PDF formatted documents and drops them in a common shared folder. These files are converted to HL7 format and imported into the right patient’s chart so that doctors can see things like labs, tests, records from other doctors, and insurance/drivers license information. The concept is simple. Scan a document and store the image in a database/file system and associate it with a patient id.
It turns out that we cancelled our support contract with a reseller who provided the consulting integration, some support software, and the primary practice management software from GE, Centricity. The scanning server software had a time limited license and expired on Saturday. Given that we are no longer on support, no new license will be issued. To renew this license, we need to spend $10K to renew the support license and keep spending $10K every year to keep the licenses current.
As CIO of the medical practice I got to see things from the purchasing side of the equation. First, I had to figure out what was broken and figure out who our supplier was for the software. It was complaining that we did not have a valid license for one component and scanning of documents stopped working. Once I figured out what stopped working and who the vendor was I had to ask around the office for a history on this account and why the contract got cancelled. Fortunately, I was smart enough to ask the right people and not ask the people who hired lawyers and sent registered threatening letters prior to the contract being terminated. Needless to say, I needed to start looking for alternate software suppliers.
I found three suppliers who could provide scanning software that integrates with Centricity. I did this by asking on the users group support forum for recommendations. There was a clear winner but I needed to investigate everything. Monday morning at 10am I started calling the vendors asking for pricing.
The first vendor, FinalSupport.com, said that I could not talk to a sales person until I talked to accounting. This is the company that we purchased from and cancelled the contract with. I wanted to see how much it would be to renew the contract and get a new license issued. This should be a 24 hour fix if the start aligned. Accounting took the day off on Monday so when I called back on Tuesday they took a message. They would not give me the name or phone number of my sales rep until I talked to accounting. Tuesday afternoon I called back and got connected to accounting. It turns out that yes we did have a contract. Yes we did cancel it. Yes our license is invalid and we need to purchase a new one. They gave me the name of the sales rep but would not give me his phone number. They put me on hold, called him, and said that he would call me shortly with a quote. Wednesday rolled around and I still did not receive a call. I call accounting again, they put me on hold, call the sales rep, talk to him and ask him to call me. Why I could not be placed on a conference bridge or transferred to his number I have no clue. 4:45pm, I get a call from the sales guy. He calls from his cell phone while he is driving and can’t take down my details. Can I send him an email with my contact information and a detail of what I need. Given that I am also driving I pull over to the side of the road and type an email to the clown. 9:30 this morning I get a quote for $10K annual support to get our scanners working. The support for the scanner is $325. Support for everything else is $9675. This is an annual support fee and licenses expire on an annual basis so if you cancel support, you loose your license.
Vendor two was almost as interesting. I call them Monday morning and get a telesales guy. I can hear him typing into salesforce.com my answers. I know what software that it is because I know what automated prompts that it asks for and am one step ahead of him with answers. He can’t give me a quote because he does not sell the software, it must go through a reseller. Tuesday I get an email from a reseller asking if I can get on a web seminar Thursday morning. I politely explain that I sold ECM for Oracle and understand the value and need for a solution. All I want is a quote. Wednesday morning I get a phone call from the reseller. He wants me to jump on a web conference so that they can show me the software and figure out which flavor I need. I get off the phone with him and wait 5 minutes until his conference bridge and web conference invitation clear the email systems. I call back and one other person joins with us. The technical guy is upset that I am not on the web conference and insists that I need to see the solution before seeing the price. Given that I am driving to an appointment and am lost in East Texas, I want to get off the phone and look at a map. I pull over to the side of the road and have someone else look at a map and have to resort to stopping and asking for directions. We missed it my half a mile. It was just around the corner from where we stopped. Meanwhile, these guys on the phone are prattling on about the advantages of ECM and how it will help find documents quicker. 6:30 last night I get a quote for $12K with $3K annual support. 9am I send them a nice note saying that they are over featured and out of the ballpark from what I was hoping to purchase.
Vendor three is GE. I thought I was in for a difficult run with this one. I came from a large company so I know how difficult it is to get information, approvals, quotes, and tech support without access to the right resource. I email the sales rep and ask for a quote on scanning software. I get back an email answer asking which solution and call him. His cell phone (yes, I had his number from a previous discussion) says that he is returning from vacation today so I figure I would be at the bottom of his call back list. He sends me an email with the name of the software and says that he needs to look up our contract information on sizing to see how much he needs to charge for scanning software. Tuesday morning 8am I get a quote for $3K (1.3K software, 1.3K consulting to install it, and $300 annual support). 8:30am I talk to accounting and lock down budget approval. 9:30am the owner walks in, signs the contract. 10am it was faxed and received by GE.
In summary, I talked to three vendors. One sent me a contract in under 24 hours and required me to spend 30 minutes investigating the solution, price structure, and asking follow up questions. One wasted an hour of my time asking questions, berating me for not watching their demo, scolding me for not having the right metrics so they can properly size the solution and took 72 hours to get me a quote for 4x what I signed a contract for two days ago. The last vendor is the one that we are moving away from. They want me to sign a $10K annual support contract to pay for the software that the lowest cost vendor provided to us. I wasted 30 minutes talking to accounting before I could talk to the sales guy. He kept me on the phone for 5 minutes and we exchanged 4 emails. I understand his position in that they make the most of their revenue from support cost and not product. I get that they want to renew the contract and get the cash flow working again.
Things look different from inside the fishbowl. Good thing that the glass is between me and the sharks outside. It makes me question my sales process when I call these schools. Do I insist that things be on my terms or am I flexible enough to adapt to what they want/need. Am I too flexible and leave too many options open making the transaction more complex than it needs to be? Hopefully the software installation won’t take weeks/months and we can get it working next week.