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by Becky Jacoby

Note: This report originally appeared in the November 2008 edition of DOTmed Business News. A list of registered users that provide sales & service can be found at the end.



DOTmed Business News online recently reported a $2 billion expense cut in the imaging industry via the Deficit Reduction Act (DRA). This event, coupled with an ambiguous economic downtrend could impact expenditures for equipment upgradesand decimate the bottom line for any imaging business. Though one would expectradiographic and fluoroscopic equipment dealers and refurbishers to feel the consequences of the DRA cuts and the tightening economy, the overall pinch is described thus far as manageable.

Influences challenging the market

Steve Walsh, President, Eastern Diagnostic Imaging, Inc. explains, "The DRA causes unplanned costs. Spending habits for equipment freeze because hospitals suddenly need to plan for reallocation of resources when affiliate imaging centers close."

Richard Szeglin, Purchasing agent, Heustis Medical/ARI, finds locating proprietary parts such as switches that OEMs no longer stock a bigger challenge than the DRA. He said, "We sell and service remanufactured GE RFX suites. I could make 20 calls searching for a part. It's hard to tell a customer you can't locate what they need, but in one instance when I had to say the part was just not available, he decided to buy a replacement table through us."

Veteran dealer Ted Huss, Medical Imaging Resources, concurs, "The DRA has reduced margins. Doctors are reticent to invest in equipment unless a sizeable return is promised." Huss thinks small doctors' groups will lack the capital to go filmless and others who have difficulty understanding the cost-benefit ofradiology equipment make the selling process grueling.

Pete Schliebner, Benchmark Imaging Group (BIG) gives customers information to make the best choice for their situation. "About 8% of our business has been filmless, but that doesn't mean that my customers aren't going filmless. I estimate 90% of our radiographic and R/F sales go into a filmless facility, but most of them provide their own CR system. None of our customers have chosen to pay for a DR retrofit because the price is still too high."

Robert Serros, Amber Diagnostics, does CR conversions working with FUJI Medical, their leading CR provider. Though Serros discusses DR with clients as well, most still find the cost prohibitive.

Naturally, certain variables affect the cost of going filmless. A capital investment initiates an analysis of needs: what is the existing equipment, how much storage space is required, how many PACS workstations are needed and what bandwidth is available to cater to those workstations.


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