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Sean Ruck, Contributing Editor | November 04, 2014
From the August 2014 issue of HealthCare Business News magazine
While parts and service come in many different flavors, one thing is always consistent — you can’t talk about parts without service, and vice-versa. So DOTmed HealthCare Business News polled dozen of industry professionals, including those with several leading OEMS, ISOs, and health care providers about how the increasingly competitive nature of the parts and service business is affecting the way they do business — and will affect it for years to come.
With financial pressures squeezing the health care industry seemingly from every direction, the impact that parts and services have on every facility’s operating budget, make this year’s reports more important than ever.
In addition, we have some eye-opening statistics shared with us by IMV’s Medical Information Division on the priorities providers set for themselves when it come to imaging equipment parts and service.
There are also tips from MD Buyline on what to think about, and what to do, when negotiating a service contract. Meanwhile, The Remy Group will help you assess the quality of the service your provider is offering.
And near the end of this section, there is a special advertising section that features some of the top ISOs in the business, if you are so inclined to use or need their services.
The OEM Story
Across-the-board reimbursement cuts, the pressure to improve the quality of the patient experience, and a slew of regulations regarding equipment maintenance have providers reeling. Many are turning to the OEMs they do business with to share their pain and be part of the solution. Parts and service costs are definitely among the the expenses hospitals are scrutinizing for potential cost saving.
But working with the equipment manufacturers has been complicated by the fact that they are feeling the pinch too – new equipment sales have been taking a hit for several years now. The OEMs, in response to that, have moved beyond their primary role as purveyors of new equipment and are aggressively expanding their role as service providers, serving not only their own products but that of their competitors by building new service arms or through the acquisition of established service companies.
In the following responses to HCBN’s questions, you’ll see how the OEMs use their unique access to proprietary parts and technology to make their case as the preferred service provider -- you can compare their arguments side-by-side. If you’re looking for a new or extended service contract this is required reading.
