Proposal Title

Prooosal Audience

Proposal Author

Date of Submission

FIGURE 17.3 External Proposal

PROPOSALFOR

REDUCING OXYGEN EXPENSES

Prepared forDr. Richard Davis, DirectorLa Habra Retirement Center

byRobert Maxwell

Marketing DirectorOrson Medical Supplies

December 8,2008

538 CHAPTER 17

Headings, subheadings,and page numbershelp the audience findinformation and navigatethe text.

Figure and table numbersplus titles allow thereader to find thevisuals quickly.

FIGURE 17.3 Continued

TABLE OF CONTENTS

ABSTRACT .....ivINTRODUCTION .......11.1 Purpose ...".11.2 Problems.... .......1

1.2.1. HighCosts . '.. '.....11,.2.2 Governmentalllnsurancelnvolvement ..' . ..' . 1L.2.3 DecreasedQualityof Service ..... '..1

DISCUSSION.... ..,...,22.1 Implementation of Electronic Demand Cannula . . . ' .22.2TechnicalDescription.... ....."..32.3 Operctinglnstructions ....-.42.4 QualificationsandExperience.. .....52.5 Personnel .... ...'...52.6 Cost ...'....62.7 \X/arcanty.... ....... /2.8 Extended'sfarranty .........8CONCLUSION .. .......83.1 MaiorConcern .....'83.2 Recommendation ....8GLOSSARY ,...,.9

1.0

2.0

3.0

4.0

Figure 1.Figure 2.Figure 3.Table 1.TabIe 2.

LIST OF ILLUSTRATIONS

EDCFrontView. .. '. '.. ' 3EDCSideView. ....'....4Returnonlnvestment... ..'...,.7BloodOxygensaturation.... -...2List Price vs. Discount Price for EDC . ' . . .7

lu

540 CHAPTER 17

FTGURE 17"3 Continued

ABSTRACI

Expenses for medical oxygen have increased steadily for several years. Nowthe federal government is reducing the amount of coverage that Medicareallows for prescription oxygen.

These cost increases can be reduced through the use of our new ElectronicDemand Cannula (EDC). The EDC delivers oxygen to the patient only whenthe patient inhales. Oxygen does not flow during the exhalation phase.Therefore, oxygen is conserved.

This oxygen-saving feature can reduce your oxygen expenses by as much as50 percent. Patients who use portable oxygen supplies can enjoy prolongedintervals between refilling, thus providing more freedom and mobility.

lv

Emphasize problemsgenerating the proposal.

Show how the proposalcan solve the problemsfor the client.

Highlight the benefitsderived from acceptingthe proposal. Stating theproblem, solution, andbenefits gives focus to thepr0posal.

PROPOSALS 541

The IEEE numberingsystem (,1.2, 1.2.1)aids document elesignand allows the writert0 organize detailedcontent.

Headings andsubheadings areused to help thereacier navigate thetext. The wriier piacesthese headings andsubheaCings on theTable of Contentsthus giving readersnili.k 2n.aea fn allparts of the proposal.

FlGi..,RE 17"3 Continued

1.0 INTRODUCTION

1.1 PURPOSE

This is a proposal to sell the new Electronic Demand Cannula (EDC)" to theLa Habra Retirement Center, LaHabra, California. This bid to sell offersyou a special discount when you purchase our EDCs in the quantitiessuggested in this proposal.

1.2 PROBLEMS

1.2.1. High CostsSince 2000, the price of medical-grade oxygen has skyrocketed. It cost $10per 1,000 cubic feet (cu ft) in 2000. Today, medical-grade oxygen costs $26per 1,000 cu ft. In fact, you can expect next year's oxygen expenses todouble the amount you spent this year.

1,.2.2 G ou ernmental/Insur ance Inu olu ementMany factors have contributed to this soaring cost, including demand,product liability, and inflation. However, two factors contributed the most.First, legislation reduced the amount that Medicare pays for prescriptionoxygen. Second, few insurance companies offer programs covering long-termprescription oxygen. Therefore, you, or your patients, must pay theadditional expenses.

1.2.3 Decreased Quality of SeruiceBecause prescription oxygen has risen in cost so dramatically, few medicalservice companies can produce affordable EDCs and stay competitive. Since2001,, according to Medical Digest Bulletin,80 percent of medical servicevendors have gone out of business. Your ability to receive quality service atan affordable price has diminished.

"This and subsequent terms marked by an asterisk (*) are defined in the glossary.

542 CHAPTER 17

: GURE 17.3 Contirnued

2.0 DISCUSSION

2.1 IMPLEMENTATION OF ELECTRONIC DEMAND CANNULA

Because the price of oxygen will not go down, you must try to use less whileobtainine the same clinical benefits.

Orson Medical Supplies, a leader in oxygen-administering technology,proposes the implementation of our new EDC*. Using state-of-the-artelectronics, the EDC senses the patient's inspiratory effort." $7hen a breath isdetected, the EDC dispenses oxygen through the patient's cannula." Thepatient receives oxygen only when he or she needs it.

Continuously flowing cannulas waste gas during exhalation and rest. Clinicalstudies have proved that 50 percent of the oxygen used by cannula patients iswasted during that phase. These same tests also revealed that blood oxygensaturation" does not significantly vary between continuous and intermittentflow cannulas. The patient receives the same benefit from less oxygen. Table1 explains this in greatet detail.

Table 1BLOOD OXYGEN SATURATION

USING THE ELECTRONIC DEMAND CANNULAVERSUS

CONTINUOUS FLOTT CANNULAS

PrescribedFlowrate(Limin)"

0.51L34

Breaths perMinute(bpm).

Blood OxygenSaturation o/o

'1.2

1,2121212

Intermittent96%98%99%

1.00%1.00%

Continuous98%99%

100%100%100%

Ife have included a technical description of the EDC to help explain how thissystem will benefit oxygen cannula users.

Explanations andJ^.^ii^

^f,!-^^^ rL^uctdil) dUUiu)> Lt teaudience's need to bepersLjaded by seeingthe llenefits of thepropcsal.

A table adds visuaiappeai, ffiakes ccmplexinformaticn easier tounclerstand, andennances tnereadability of numbers.

543PROPOSALS

Line elrewingscombined withdimensions help thereaeler i0 visualizeihe equipffent. ln thisway, the w!'iteranticipates qLrestionsthat the reacler mightl]ave ahout theequrpment.

FIGUR'!7.3 CCIntinued

2.2 TECHNICAL DESCRIPTION

The EDC" is an oxygen-administering device that is designed to conserveoxygen. The EDC is composed of six main parts: oxygen inlet connector,visual display indicators (LEDs)," power switch, patient connector, ACadapter connector, and high-impact plastic case (see Figures 1. and 2).

Oxygen lnletConnector

Visual Display

OXYGEN INLET CONNECTOR:The oxygen inlet connector is a DISSNo. 1240 (Diameter index safetysystem)'r and is made of chrome-platedbrass.

VISUAL DISPLAY Two LEDs" providevisual indicarions of importantfunctions. Alarm functions aremonitored by a red LED, Motorola No.R32454. An indication of eachdelivered breath is given by the pulsedisplay, which is a yellow LED,Motorola No. Y32454.

POWER SWITCH: The power switch isan ALCO No. A72-3 slide switch. Thedimensions are 0.5" x 0.30": buttonheight is 0.20". Electrical Specifications:Dry contact rating is 1 amp, contractresistance is 20 milliohms, and thelife expectancy is 100,000 actuations.

PowerSwitch

5- 3.50', ---->:

Figure 1 EDC Front View

Aled PulsePulse

a--=--=-1 l-l| ::':.^'i l llr.'jl| '::':"' I h-rl| tsut I tulSteady

544 CHAPTER 17

FIGURE 17.3 Continued

nI

1.10'IDisplay----v--

Panel

High-ImpactPlasticCase

AC AdapterConnector

Figure 2 EDC Side View2.3 OPERAIING INSTRUCTIONS

PATIENT CONNECTOR:Attachment of the parientcannula system is made at thepatient connector, which islocated at the bottom of the case.The white nylon connector, AirLogic No. F-3120-85, is a 10-32,INF male threaded, straightbarbed connector for 118" IDflexible tubing.AC ADAPTER CONNECTOR:An optional AC adapter"' andbattery charger assembly, partnumber PA-32, plugs into theAC adapter connector, which islocated at the bottom left-handside of the case. The connector isa male, D-subminiature, 12-pinflush insert supplied by DupontConnector Systems. The partnumber is DCS: 68237009.HIGH-IMPACT PLASTIC CASE:The case housing is made from animpact-resistant, flame-retardant,oxygen-compatible ABS plastic',.

The EDC is an oxygen-saving and administering device (see Figures 1 and 2).By following these five easy sreps, you will be able to enioy the benefits ofintermittent demand oxygen.

WARNING: Federal law prohibits the sale or use of this device without theorder of a physician.

1.4',+

Using technicaldescriptions creates a"word picture" of theequrpment.

545PROPOSALS

Qualifications andexperience heli-r tooersuads tne readercf your conipany'sexpertise, rsputati0nab!llty to do the jolr.

FIGN-,RE 17.3 Continued

1. Attach your oxygen supply to the Oxygen Inlet Connector located atthe top of the case.

2. Move the Pulse-Steady Switch to the Pulse position to beginintermittent demand flow.

3. Connect your nasal cannula to the Patient Outlet Connector locatedat the bottom of the case.

4. Adjust your oxygen supply to the oxygen flow prescribed by yourphysician.

5. Put on your nasal cannula and breathe normally. The pulse light willturn on when a breath is delivered'

You are now ready to conserve oxygen by as much as 50 percent. Should youhave the need to go back to continuous flow, just push the Pulse-SteadySwitch to the "steady" position.

2.4 QUALIFICATIONS AND EXPERIENCE

Orson Medical Supplies has been an international leader in the field ofrespiratory therapy since 1,975. Pure Air introduced the first IPPB" respiratoron the market. In 1985, responding to the needs of doctors and therapists,we produced the first life support volume ventilator, the W-1. The W-1became the industry standard by which all other ventilators were measured.

In 1990, Orson Medical Supplies introduced the first computer-controlledlife support system, the W-2. Technology developed for this product hasfound application in other areas as well. Recently, we introduced one suchproduct, the Electronic Demand Cannula.

Orson Medical Supplies is located in Overland Park' Oregon. The mainmanufacturing and engineering facility employs 450 people. Regional salesand service branch offices are located throughout the United States.

2.5 PERSONNEL

Each of our engineering facilities is staffed by trained technicians ready toanswer your questions. The following individuals have been assigned to LaHabra Retirement Center:

546 CHAPTER 17

FIGURE'17.3 Continued

Randy DraperRandy (BS, Electrical Engineering, South Central Texas University,1992) has worked at Orson Medical Supplies since 1992.In 16 years atOrson, Randy has been promoted from service technician to supervisor.Randy specializes in developing new medical equipment. He hassupervised the development teams that worked on the X29 respirator,the 2284-00 ventilator, and the Omega R-449 sphygmomanometer.Randy was lead development specialist for the Pure Air EDC.

Randy will be in charge of your account. Please contact him directlyregarding any questions you might have about the EDC.

Ruth BressetteRuth (BS, Mechanical Engineering, Pittsburgh State Univer sity, 19 97)has worked at Orson Medical Supplies since 1998. She has risen in ourcompany from service technician to manager of troubleshooting/maintenance. Ruth has received the highest-level certification (MasterTechnician) offered by the IEEE for service on every piece of equipmentdeveloped, manufactured, and sold by Orson.

Ruth will be the manager of your Orson equipment maintenance andtroubleshooting crew. Her responsibility is to ensure that yourequipment is kept in outstanding working condition. She will schedulemaintenance checks and promptly assign technicians to troubleshootpotential malfunctions.

Douglas LoebDoug (AA, Electrical Engineering Technology, Plainview CommunityCollege, 1992) is one of our most accomplished troubleshooters. Havingworked at Orson for t6 yearc, Doug is commended annually for hisspeed, accuracy, and skill. Your equipment is in good hands with Doug.He will be your primary troubleshooter and maintenance person.

2.6 COST

Orson Medical Supplies is pleased to offer our Pure Air EDC at cost-effective pricing. Table 2 explains the benefits you'll derive whenpurchasing in quantity.

Provide detailedcredentials andemphasize thequalifications of theteam members for theaudience. Such detailscan help persuade thear rdionnp fn 2..onttlre proposal.

PROPOSALS 547

FIGURE 17.3 Continued

Visuals, such as tables andfigures, break up potentiallymonotonous text and helpto persuade the audlencethrough accessiblecontent.

Table 2 LIST PRICE VS. DISCOUNT PRICE FOR EDCQuantity Extended

List Price \Tarranty" Der EDC Total Cost$3s0Discount Price$310$300

1-9 units

10-24 units25+ units

$7s

$60$s0

q4? 5

$370$350

As you can see, Orson is happy to offer you substantial savings when youpurchase our Pure Air EDC in volume. At these prices, and assuming normaluse, the oxygen cost savings will exceed your initial investment in less thanone Year. as shown in Fieure 3.

Dollars

600500400300200100

o 2 4 6 8 10 12 14 16 18 20Months

Oxygen Expense Initial InvestmentsFigure 3 Return on Investment

2.7'WARRANTY

Orson Medical Supplies warrants this product to be free of manufacturingdefects for a one-year period after the original date of consumer purchase.This warranty does not include damage done to the product due to accident,misuse, improper installation or operation, or unauthorized repair. Thiswarranty also does not include replacement of parts due to normal wear.

"Orson's extended warranty is discussed in Section 2.8.

548 CHAPTER 17

If the product becomes defective within the warranty period, we willreplace or repair it free of charge.

This warranty gives you special legal rights. You may also have otherrights that vary from state to state. Some states do not allow exclusionsor limitations of incidental damage, so the above limitations may notapply to you.

2.8 EXTENDED \TARRANTY

In addition to the coverage provided in our uncondition aI warranty,you might want to take advantage of our extended warranty package.For the prices provided in Table 2, Orson Medical Supplies will extendthe warranty to cover a three-year period after the original date ofconsumer purchase. Nfith this three-year extended warranty) Orson notonly covers manufacturing defects but also replaces worn parts free ofcnarge.

The extended warranty does not cover damage to the product resultingfrom accident, misuse, improper installation or operation, orunauthorized repair.

For answers to any of your questions regarding repair, replacement,warranty, or extended waffanty) please call 1-800-555-ORSN, orwrite to Manager, Customer Relations, Orson Medical Supplies,12345 College Blvd., Overland Park, OR 90091.

3.0 CONCLUSION

3.1 MAJOR CONCERN

Prescription oxygen expenses are escalating whereas governmentsupport has been reduced. The cost increase to the patient and thehealth care facility will be enormous.

3.2 RECOMMENDATION

To offset the inevitable rise of oxygen expenses, we recommend the useof the Electronic Demand Cannula.

FlGtlRE 17"3 eontinued

Offering the customeran extended warrantyc0uld persuade thereader of the benefitsof the proposal.

PROPOSALS 549