by Joan Trombetti

This article is from in the March 2008 issue of DOTmed Business News. A list of registered users that provide sales & service can be found at the end.

Hospitals, clinics, imaging and other independent health centers, doctor's and dentist's offices, university, big pharma and other research facilities and yes, even medical testing labs.

And it's been that way forever.

The industry has a long history. Witness, for example, how many times bubbling beakers and vials in alchemy labs figure in the paintings of the Grand Masters. From the Renaissance to the 21st Century, the lab has evolved from a place where magic was chased to one that's become the backbone of science, state-of-the-art medical treatment and diagnosis.

However, while every lab has different roles, goals and a wildly varying assortment of equipment to achieve its assigned tasks, what they collectively contribute is a bit of modern magic. The JCAHO reports that almost 80 percent of the information used for medical decision-making is made based on laboratory findings. That's impressive, not to mention a defining statement about lab equipment's crucial role in medicine.




Technological advances in the industry, meanwhile, have created a range of new or modified products, mostly ensuring a robust marketplace for both new and refurbished equipment. Nonetheless, there are times when equipment sales can be affected by the economy's overall health.

Lab equipment includes professional and scientific instruments for measuring, testing, analyzing and controlling along with sensors and accessories, optical instruments (microscopes) and lenses, medical, surgical and dental equipment, furniture, the list is endless. As befitting such panoply of product, the environment for servicing and selling new and refurbished laboratory equipment is competitive and always evolving

Since the importance of lab equipment is only slightly less than that of the staff that uses it, replacing or servicing a lab's contents affects many areas of an organization including finance, workflow, staffing and patient care.

Who are the Industry Drivers in the Laboratory Equipment Business?

In the laboratory, there are layers upon layers of clinical procedures and tests that must be performed using a myriad of machines from autoclaves to x-ray fluorescence analyzers. There are industry drivers who take the front seat in providing the best new and refurbished laboratory equipment from the leading manufacturers. Along with selling laboratory equipment, many also handle repairs, routine maintenance, calibration and certification on all types of instruments and equipment.

For example, Block Scientific, Inc., Nutley, NJ carries many categories of new and refurbished equipment including blood gas, electrolyte, chemistry, immunology, hematology, coagulation, microbiology, urinalysis and more. Peter Will, General Manager, says Block offers clinical diagnostic equipment for all laboratory divisions. And, he says, "Block supports this equipment with reagents, spare parts and consumables."




In assessing the state of the lab business, Will suggests that in the interests of efficiency and productivity, buying and selling lab equipment online will only continue to gain in popularity. "Many labs are turning to the Internet for support, and Block Scientific will soon have the ability for online purchases to help streamline the process, he says."

Proper service of laboratory equipment is crucial

As with most sophisticated and delicate pieces of medical equipment, much of what's found in the lab demands proactive maintenance.

Certified Biomedical Consultants, Inc. (CBC), Pompano Beach, FL, services and sells refurbished laboratory equipment for commercial labs, clinics and hospitals that use SYSMEX products - hematology and coagulation analyzers.

Company president John Necaise says all lab equipment eventually wears out, but routine upkeep is essential to increasing uptime and MTBF (mean time between failures). Necaise says such maintenance is key to maintaining lab equipment in a satisfactory operating condition and to detect and correct incipient failures either before they occur or before they develop into major defects. "CBC inspects, replaces, cleans, calibrates to the manufacturer's specification and lubricates all equipment," says Necaise. "We also include performance assurance and safety testing (electrical safety)." As for what requires the most service, Necaise believes that hematology equipment is more maintenance intensive than coagulation.

Billy W. Dean, Vice President of Sales and Marketing at Medequip Engineering Service, Inc., Central Point, OR, agrees with Necaise about the importance of regular maintenance for lab equipment.

"Routine maintenance always affects the MTBF ratio of any equipment," Dean says, reminding that as technology becomes more sophisticated, both user and preventive maintenance becomes more and more critical.

"High tech equipment usually does not wear out. Instead it's overtaken and becomes obsolete. Lower technology equipment does wear out, but it usually has a much longer life expectancy than the high tech equipment," Dean says. Pointing to a new or refurbished steam sterilizer as an example, the Medquip exec suggested that, "Depending on usage and proper maintenance, a steam sterilizer should have an expected life of at least 20 years. The control technology of the sterilizer may be obsolete in ten years, but the unit will still be a functional sterilizer for years after that."




At R-V Industries, Honey Brook, PA, where the company produces Beta Star sterilizers, manufactures ASME code vessels and celebrates that it's one of a select few in the Commonwealth to be recognized with OSHA's SHARP safety certification, the emphasis is on testing, the environment and helping customers to lower operating costs.

Marketing manager Robert Hamm says the company's testing facilities are unique in that it uses a water reclamation system, The EnviroVac. "Facility water consumption is a major factor when choosing an autoclave," says Hamm. "Autoclaves consume a tremendous amount of water during a cycle. Facilities can lower operating costs and help achieve environmental awareness ratings by purchasing a sterilizer with a water conservation system. R-V Industries only sells Beta Star Life Sciences Autoclaves. Hamm feels that routine maintenance programs are designed around a calendar year and take into account lubricating, cleaning and rebuilding or replacing wearing parts. "P - preventative M - maintenance programs are developed to anticipate wear and to enhance reliability of the equipment and reduce costly downtime," he says.

Building an entire laboratory

One way to stock a lab is according to need, piece-by-piece, purchase-by-purchase.

But Med/Tech, Cambridge, MA often builds labs--analytical, clinical, and environmental or research--from the ground up, relying mainly on refurbished product.

"A client locates a suitable site and informs us as to what they want to do testing wise and we do an analysis," says company president Elaine Henkin. "The site is customized in everything from the placement of benches and workstations to recommending what type of equipment should go in the lab and where it should go," All of the equipment that Med/Tech sells is refurbished to meet or exceed manufacturers specifications, unless specifically requested, "as is". MedTech, like many suppliers, offers a one-year Preventative Maintenance contract.

Although Henkin admits DRA has affected the lab equipment business in recent times, she remains optimistic about future growth. "There seems to be a turnaround recently, perhaps more optimism."

The Med/Tech chief also reminds that matching equipment to the individual lab's demands is a straightforward way to control costs. For example, the analyzers that save the most money are appropriate to the particular tests each lab performs and, of course, the volume. Henkin also says to always factor in the cost of reagents into each lab's budget.

For Maureen Muscato, a broker for Mayflower Equipment Company, Carver, MA, more than 75 percent of her business is in lab equipment.

"I buy all types of laboratory equipment from all types of facilities," she says. Mayflower buys chemistry, hematology, histology and analytical equipment. Although Muscato says that she does not set up labs, she provides equipment dealers who that specialize in that area. In her experience, the most popular laboratory equipment seems to be chemistry analyzers and hematology analyzers. Muscato feels that Hitachi chemistry equipment is the most in demand and retains strong resale value as well.

"Although the market changes day to day in everything from lab equipment to surgical equipment, for example, it has been my experience that laboratory equipment does hold its value," she concludes.

That's particularly true of refurbished product says Richard Szkocny, Eastern European manager, Sysmed Lab, Inc., a Chicago based refurbisher and broker. And Szkocny knows whereof he speaks: Sysmed's refurbished sales out pace new by 65% to 35%.

Current trends driving the laboratory equipment market

Rising costs and time-to market demands are key drivers in today's laboratory equipment market. And labs are always looking for new ways to become more efficient and reliable. But industry veteran are quick to point out that cost control does not come at safety's expense. Most labs are always looking for ways to improve worker safety, at the same time taking advantage of a continual stream of advances in lab equipment.

One company that clearly is preoccupied with those two issues is Hettich Instruments, Beverly, MA, and a division of Hettich GmbH & Company, Tuttlingen, Germany. It has more than 200 patents in its name, including the first micro-processor-controlled centrifuges and the development of the first robotically integrated centrifuges to its credit.

Moreover, Hettich is unique because its centrifuge is aboard the Human Research Facility (HRF) of the Destiny Laboratory on the International Space Station. Jeff Antonucci, a media relations executive at Hettich says, "Clearly, when dealing with such a remote application, safety and reliability are of the utmost importance. We try to keep that a priority on earth as well."

Currently it seems as if the most signification innovations are found in extraction and analysis instrumentation. Pharmaceutical and microbiological labs now use mechanical pipettes, which have dramatically increased efficiency. Incorporating autosamplers on analytical instruments has allowed personnel to keep instruments running 24 hours a day. And, despite the economy, the market for laboratory equipment is and will continue to thrive because there will always be a need for labs in their role as the backbone of science.

Lab Automation is a Crucial Component

A laboratory-automated system has a myriad of advantages offering speed and accuracy that cannot be matched by humans. With an automated system, laboratory personnel can perform applications they were trained for and not monotonous tasks.

Modern technology has come to the rescue when absolute consistency and speed are a factor in sophisticated laboratory testing. Companies that are making automated laboratory systems have done their homework and offer an array of options to facilitate data and revenue flow. The system should be able to interface successfully with instruments from different vendors, as well as interface with a wide variety of laboratory information systems. It should be able to handle a multiple sized tubes and allow for the use of plastic cups placed on top of primary tubes.

Integrated Laboratory Automation Solutions, Inc. (iLAS), Troy, MI, was launched with just such a mission statement. Vice President of sales, Eastern region, Harry Hirt, says that iLAS 's Efficiency SeriesTM is a modular system that is designed for as few as two instruments or systems as large as DMC's with eleven instruments. "Automation, in its best configuration, should serve the primary needs of the laboratory," Hirt says. "Avoid solutions that require work-around, or alterations of 'common sense' work flow and avoid complexity."

Continuing in the automation vein, David Zelmanovic, President, LabThroughPut (LTP), Monsey, NY, provides computer software to clinical laboratories that improves operational efficiency. "We provide what is referred to as middleware,'" he says. The company's LTP Achiever automates the verification of blood analyzer results before they are released to host systems. "It's called 'middleware' because it bridges the blood analyzers and host computer systems." Zelmanovic says other LTP products automate the analysis of body fluids that would otherwise require a series of manual steps carried out by skilled operators. "Our process reduces analysis time by almost a factor of 10 and costs much less than the manual technique."

Another refurbished equipment supplier is Sysmed Lab, Inc., Chicago, IL. Richard Szkocny, Eastern European manager says his company sells hematology, immunology, chemistry, transducers for ultrasound devices and ultrasound systems. He says that the most durable systems are the ultrasounds and transducers. Sysmed's refurbished sales out pace new lab equipment 65% to 35%.

Enduring yet Changeable

The bottom line on lab equipment: it's a multimillion dollar technological arena that's populated by numerous mid sized manufacturers, a network of broker-dealers, all providing a range of service, and all promoting the "pay me now or pay me later" school of preventative maintenance. Moreover, what occurs in the lab is often crucial to life or death medical decisions, suggesting, of course, why the lab will always be at the core of medicine.

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DOTmed Registered Laboratory Equipment Sales and Service Companies
Names in boldface are Premium Listings.

Domestic
Randy Lowers, L & R Services, FL
DOTmed Certified
John Necaise, Certified Biomedical Consultants, Inc., FL
Wesley Perzan, Sysmed Lab, Inc., IL
DOTmed Certified
Steven MacInnis, Cambridge Scientific, MA
Maureen Muscato, Mayflower Equipment Company, MA
Don Gray, Weigh-Mor Balance Service, MA
Chris Hull, Histotronix, Inc., NE
Peter Will, Block Scientific, Inc., NJ
Tom Champi, Alto Technology Inc., NJ
David Zelmanovic, Lab Throughput, NY
Mark Ralston, Scientific Instrument Center, OH
Billy Dean, Medequip Engineering Service Inc., OR
DOTmed Certified
Gary Rogers, DAOT Enterprises, Inc., PA
Amanda Wright, QBC Diagnostics, Inc., PA

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