Another factor affecting the industry adversely relates to insurance reimbursement and the role of radiology consulting companies such as CareCore National (see DOTmed News 3/9/06). As one of the largest radiology management consulting companies, CareCore is re-assessing the minimum accreditation standards for older imaging equipment used at free-standing imaging facilities, and those standards are being used by major healthcare insurance companies. "[CareCore National is] mandating that equipment has to be much newer than it needs to be to get the job done," Bogutski said. "That is the fourth part of the perfect storm: Many imaging centers want to save money and use a reconditioned or upgraded system. But if they are being told by healthcare insurers that they're not going to be reimbursed, or [at a] lower rate, they will not get the economies hoped for to stave off what's happening to their income based on capitated, or reduced, reimbursements," Bogutski noted.

The stakes here are high not just for the used equipment market, but for the delivery of healthcare itself -- particularly in less affluent areas. "[These regions] need used medical equipment to fill in the diagnostic imaging void because they can't afford to buy new," Bogutski observed. "A used MRI is better than no MRI, but if the used imaging equipment market dries up, less affluent facilities - and their patients - may have to do without."

If what Bogutski says is true -- or even half true -- the future of the used imaging equipment industry is bleak. The industry could see serious contraction among dealer and service providers; the availability of used equipment could shrink; adverse pricing changes could occur; and vital healthcare services to people in less affluent regions could be reduced.

DOTmed definitely wants to hear your opinion on this big issue. Do you agree or disagree with Bogutski's assessment? What about other segments of the used medical equipment business, not just imaging equipment, are they at risk too? If the threat is real, is there time to reverse it, or is it too late already? Please let us know how you think the industry should react.

Outside of our own industry, the other groups that have a stake in this issue are healthcare providers and their patients. Will hospitals on tight budgets see the possible shortage of used equipment as a healthcare problem?

This story is just beginning. We will be following it -- and printing your comments and ideas -- in future issues.

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