11The equipment planning and procurement process should be based on national equipmentlists. In many countries, the Ministry of Health has developed guidelines or standard lists ofequipment for all levels of the health system. In Ethiopia, FMHACA is in the process ofdeveloping list of medical equipment; however some hospitals have their own list of medicalequipment. A standard list is essentially a model list of equipment, based on the type ofhealth services a facility is expected to carry out (Temple-Bird et al., 2005b).The EHRIG dictates each hospital to have model medical equipment list that describe theideal number and types of equipment required by the hospital. The list is determined by theessential health service package which is developed by a multi-disciplinary team (FMOH,2010b).Medical equipment can be procured in three ways: purchasing, receiving donation and hiring.In purchasing, the hospital buys the medical equipment using funds from government. Indonation, the pieces of equipment are chosen and supplied free of charge by non-governmental organizations, charities, individuals, and private businesses. This can rangefrom gifts of small quantities of items to substantial equipment procurement projects.Leasing, renting, – may be an alternative to outright purchase of equipment for or hiringthose with limited budgets or cash flow problems (Temple-Bird et al., 2005b).Wrongly procured equipment is normally the beginning of maintenance problems, oftenrendering the equipment non-functional. According to a study, lack of equipmentstandardization, poor management information system, poor logistics of spare parts and lackof ongoing training compound the problems of maintenance for technical personnel andusers. This concurs with the study by the World Bank (1993), which concluded thatstandardization could simplify management and maintenance and reduce inventory costs(Ogembo-Kachieng'a, 1999b).Well managed equipment procurement can save both time and money, as a result of theshorter time required to train operating personnel and to install and commission equipment,lower frequency of breakdowns and accompanying inconvenience, shorter equipment down-