There are so many variables in the medical imaging equipment equation. Which equipment is right for your facility? How do you finance new equipment? How do you persuade administrators to invest in the new purchase? And finally, once the equipment is securely financed and safely installed, what is the best service option for the equipment?

Today there are more service options than ever before. Not only have the number of options multiplied, but also the very meaning of service has changed. Cost and labor pressures on the healthcare industry have yielded a redefinition of service. Art Larson, service operations manager for GE Medical Systems (Waukesha, Wis.), says, “Service is about more than fixing things. It’s about our company and our customers working better, smarter and faster.”

GEMS and other service providers operate in a fiercely competitive climate. OEMs have gobbled up smaller service companies and dropped prices for service contracts over the last few years. They are also attempting to deliver value in other ways. These days, a hospital can select from a portfolio of OEM service options to best meet their needs. This can be an attractive solution for many facilities.

There are, however, a few downsides to the OEM option. The biggest downside to a full-service OEM contract is its price. A fair number of cash-strapped hospitals are finding that full service contracts are more than their budget can swallow. And while remote diagnostics are a great tool, some hospitals prefer a more hands-on, personal approach.

Declining rates on service contracts have made life more difficult for many ISOs, that are struggling to compete with OEMs. Some ISOs are succeeding by relying on their ability to provide personalized, independent service. And many of the more successful ISOs are peddling consulting services in addition to service. ISOs, after all, are unbiased and uniquely equipped to discuss the pros and cons of various technologies.

Please refer to the April 2003 issue for the complete story. For information on article reprints, contact Martin St. Denis