DOTmed.com - Special report: Acquisitions rife in medical parts industry
SEARCH
Current Location:
>
> This Story

starstarstarstarstar (1)
Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

Never Miss a Story

Sign up for email alerts

 

More Industry Reports

The changing face of mobile medical Reimbursement issues have stifled business, and many of the small budget hospitals that once depended on mobile imaging have crossed over to onsite scanners to meet the growing demand for MR and CT.

Radiography job market remains tight, while digital path continues Competition remains fierce and education is shifting to digital

Magnets and helium: partners in superconductivity Updates on the helium debates

Coils: an array of channels to choose from Coils come in different shapes and sizes and we have them covered

Chillers - out of sight, but don't keep them out of mind The unsung workhorse of the medical world still needs tending to

MR imaging: a high-field analysis from every angle Technology updates and improving the patient experience

The General process of manufacturing X-ray tubes A look behind the scenes at what it takes to make a tube

Parts and Service - The Full Story Advice and opinions from OEMs, ISOs and providers

I want YOU to lower the dose! How the MITA Smart Dose Standard is ruling the CT Market

Sterilizers go high-tech A classic piece of equipment gets updated

Parts inventory
at C&G Technologies.

Special report: Acquisitions rife in medical parts industry

by Diana Bradley , Staff Writer
This story first appeared in the August 2012 issue of DOTmed HealthCare Business News

Mergers and acquisitions have always been routine in the medical equipment parts sector, but experts note a major surge in recent years. It has become increasingly evident that unless a company has a niche model that is not easily duplicated, it has difficulty competing against those with greater resources.

Story Continues Below Advertisement

See the Future of Radiology at RSNA 2014

Agfa HealthCare (Booth #4708) will focus on the 'Future of Radiology', demonstrating specific ways in which it is meeting the various & evolving needs of healthcare. Click for more info or to schedule a private demonstration



“When you think about it, parts are a critical component of daily operations for a service provider,” says Mark Suffridge, vice president and general manager of ReMedPar Inc., a centralized source for quality assured diagnostic imaging parts and technical support. ReMedPar acquires systems from around the world and utilizes rigorous ISO-90001:2008 certified processes to test and qualify parts before placing them in finished goods.

“It is only natural that service organizations would look to acquire or merge with parts organizations as a way to enhance their own supply chain,” he adds.

Recent mergers and acquisitions include the ARAMARK Healthcare/MasterPlan Inc./ReMedPar merger and the Philips Healthcare/AllParts Medical acquisition. Additionally, this year alone, BC Technical Inc., a large third-party dealer and servicer of molecular imaging equipment and parts, acquired three companies: Consus Medical Imaging, Xpert, Inc. and RA services, Inc.

“I am seeing service organizations buying parts companies to bring as much in-house as they can,” says Ken Smith, executive VP of sales and service for BC Technical. His company stocks around 40,000 parts in inventory.

He says the increase in acquisitions has occurred largely during the last two to four years. “When you look at who is doing the buying – for example, Philips and ARAMARK – it is about controlling the parts. Parts are a high margin business, and so if they can control those parts, they can control the cost of services.”

ARAMARK is shifting its focus from being an asset manager to diagnostic imaging and providing the services directly, so the company wants to have field engineers and parts, and Philips is doing the same thing, according to Smith.

“All of the original equipment manufacturers (OEMs) are looking for additional channels for service revenue,” adds Smith. “They are seeing the service revenue go down because of competition and pricing pressures from the economy, so they are looking outside of their core businesses. For instance, GE Healthcare is looking to service Siemens Healthcare and Philips’ equipment.”

Continue reading Special report: Acquisitions rife in medical parts industry ...
  Pages: 1 - 2 - 3 - 4 - ... >>

Related:


Interested in Medical Industry News? Subscribe to DOTmed's weekly news email and always be informed. Click here, it takes just 30 seconds.

You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Center
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2014 DOTmed.com, Inc.
ALL RIGHTS RESERVED