How much will that "bargain" really cost you?

A recent article in The New York Times reported on hundreds of lawsuits alleging health problems caused by inferior or contaminated drywall that was manufactured in China and used extensively in the Southwestern United States as part of the Hurricane Katrina rebuilding process. This illustrates why Caveat Emptor (buyer beware) or at least "buyer be cautious" remains good advice for the professional small business.

Whether patient supplies, construction or remodeling supplies or almost any other significant purchase, doing proper due diligence and research before purchasing is an important part of business risk management. If employees or patients are exposed to hazardous products, including employees or patients with hyper-sensitivity issues who may be affected when others are not, expensive investigation and litigation can often be the result. As we have discussed here in the past, litigation is always expensive and, even if the actual costs are "covered' by insurance, the time involved in properly participating in the defense of a lawsuit is valuable time not spent in actually treating patients and transacting business.

Part of your pre-purchase due diligence should include researching the origins of the product, whether the supplier or purchase contract indemnifies the purchaser and exactly what warranties are included or disclaimed by noth the manufacturer and seller/distributor. Before a significant purchase, consulting an attorney, CPA or practice management consultant can often be the best "purchase" you will make.