Healthcare Acquisition Policy

HEALTHCARE ACQUISITION POLICY

Organization Name:   Policy Number:

Title:   Effective Date:   Next Review Date:

Purpose

This Healthcare Acquisition Policy establishes requirements and procedures for the selection, procurement, acceptance, and lifecycle management of goods and services acquired by the organization. The policy seeks to ensure acquisitions support patient safety, regulatory compliance, fiscal stewardship, cybersecurity and privacy protections for protected health information, and appropriate clinical evaluation.

Scope

This policy applies to all acquisitions of capital equipment, medical devices, supplies, software, professional services, construction, leases and any third-party arrangements that involve provisioning, storage, processing, or access to patient data. Exceptions require documented written approval from the policy owner and executive approver.

Definitions

Capital acquisition: means procurement of an item with a useful life greater than one year and an acquisition cost at or above the capital threshold. Vendor due diligence: assessment of financial, regulatory, privacy, security and quality standing of a supplier.

Roles and Responsibilities

Procurement Office: manages solicitation processes, maintains procurement records, and verifies competitive requirements. Clinical Leadership: defines clinical requirements and acceptance criteria. Legal Counsel: reviews contractual terms including indemnity, warranty, data protection, and termination rights. Finance: approves budget availability and funding classification.

Procurement Procedures

All acquisitions shall follow these minimum procedures: needs assessment, clinical evaluation, budget approval, vendor solicitation or selection, contract negotiation and legal review, delivery and acceptance testing, and records retention. Competitive solicitation is required at or above the threshold specified below.

Competitive bidding threshold (USD):   Sole-source approval threshold (USD):

RFQ (Request for Quotation)   RFP (Request for Proposal)   Direct procurement (justified)   Preferred vendor list

Vendor Selection and Due Diligence

Vendor evaluation must include clinical suitability, quality and safety records, regulatory standing, financial stability, data security posture, warranty and maintenance terms, and evidence of required insurance. For vendors with access to protected health information, vendor must meet the organization's data protection requirements and execute a written data protection agreement.

Conflict of Interest and Ethics

Employees involved in acquisitions must disclose any potential or actual conflicts of interest prior to solicitation or award. No employee shall solicit or accept gifts, favors, or gratuities from bidders or contractors. All disclosures must be recorded and reviewed by the policy owner and human resources.

Approval Authority and Delegation

Approval thresholds and delegated authority are as follows. Approvals must be documented and retained with procurement records.

Department Head approval up to:   Finance Director approval up to:   Executive approval above:

Emergency Procurement

In the event of an immediate threat to patient safety, public health, or continuity of essential services, emergency procurement procedures may be used to expedite acquisitions. Emergency procurements shall be documented with the reason for emergency, actions taken, suppliers contacted, and approvals obtained retroactively where required.

Emergency procurement authorized:   Emergency contact:

Contract Review and Terms

All contracts shall be reviewed by legal counsel prior to execution. Contracts must address warranty, maintenance, service levels, data protection, indemnification, limitation of liability, insurance requirements, and termination rights. No contract shall be executed that infringes applicable healthcare laws or regulation.

Legal review required:   Insurance verification required:

Acceptance, Installation, and Testing

Acceptance testing shall be performed by designated clinical and technical staff against documented criteria. Installation and staff training must be completed prior to final acceptance. Any defects discovered during the acceptance period shall be remedied by the vendor at no additional cost.

Records Retention and Audit

Procurement records, contracts, approvals, solicitation documents, evaluation results, and acceptance records shall be retained in accordance with organizational records retention policy and regulatory requirements. The organization reserves the right to audit vendor performance and procurement files.

Privacy, Security, and Regulatory Compliance

All acquisitions that handle, store or transmit protected health information must comply with applicable privacy and security requirements. Security risk assessments, encryption, access controls, and minimum cybersecurity standards shall be required for information systems and connected medical devices.

Non-Compliance and Remedies

Non-compliance with this policy may result in disciplinary action, contract termination, recovery of costs, and other administrative remedies. Material breaches by vendors may result in contract remedies including termination for cause.

Policy Review and Revision

This policy shall be reviewed at least annually or more frequently in response to regulatory changes, significant incidents, or changes in organizational structure. Amendments require approval by the policy owner and executive approver.

I certify that I have reviewed this Healthcare Acquisition Policy and will ensure that procurement activities under my responsibility comply with its requirements.

Acknowledgment: I acknowledge receipt and understanding of this policy.

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