Protect your investment in technology

There is no bullet proof system, but with a few modifications to your vendor contract much of the risk associated with buying technology can be avoided.  Consider these modifications to your contract:

• Version Protection – Many vendors discontinue software, only to resell you the system in the future. Modify your contract to require the vendor to provide you with software updates at no charge. This also applies to system updates and new versions.
   
• Government Mandate – Vendors must stay in compliance with all government mandates and modify their software at no cost. This includes Stimulus Incentives.
   
• Support fees cannot be increased greater than the consumer price index.
   
• Vendor guarantees should not exceed their quote without prior approval.
   
• A contract is not valid until vendor meets acceptance requirements, such as the system working as promised.
   
• Warranty – Vendor will correct any malfunctions at their expense. Support fees will be waived while system is non-performing or during the correction period.
   
• Warranty – Should always start when the system goes live (NOT at contract signing).
   
• Malfunctions not corrected within an agreed upon time period will result in a full refund.
   
• Vendor must put the source code into an escrow account.
   
• Vendor must allow you to assign or transfer your contract to a new owner. (Software is non-transferable. The value of your practice could be downgraded in the event of being restricted from transferring your electronic medical record (EMR) to the new owner.)
   
• Future provider/users can be added at a reduced cost.

And for the best protection of all….

• Payment terms should be based on project milestones. NEVER pay 100% upfront for any system. Here is a simple form to follow:
   
• 25% at signing the contract.
   
• 25% after successful install and TESTING of the hardware and software.
   
• 25% after you are satisfied with training.
   
• 25% 30 to 60 days after going-live.
   
• The annual maintenance should be paid 60 days after going live. Never pay
  maintenance before going-live.
   
• All professional fees and travel expenses should be paid as incurred.

These contracting tips provided by Coker Group, a full service information technology provider and an ISMS Recommended Solutions Provider. ISMS members receive a 10% discount on all services.