In the early 90s Ed Sloan found himself sitting in the waiting room at a medical facility in Spokane, Washington with some time to kill. He had flown into town on a 5 a.m. flight out of Dallas, where he had spent the night after departing his home in Tennessee the day before.

He wasn’t there to see a doctor. He was there to see a very unhappy equipment service administrator. Ed’s company had provided an I/O circuit board that failed the previous day and the CT9800 CT scanner was useless until a replacement arrived. The administrator made it clear over the phone that this was unacceptable.

If you saw him sitting there, red-eyed for lack of sleep and without any immediate solution to repair the problem, you might ask yourself why he even bothered to take the trip. The answer to that question provides an insightful glimpse into Ed Sloan’s business philosophy.

“In every service event, a machine may be broken and a customer may be broken,” Ed recently told me. “If you can’t fix them both, you’d better fix the customer. If you can fix the customer, you’ll have another chance at the machine but it doesn’t go both ways.”

Full disclosure, Ed and I are friends. You could probably fill Madison Square Garden with all of the people who are friends with Ed Sloan. He has helped me and other people and although I have never written a story like this in the past, it seems appropriate to me that I do so now.

When it comes to independent parts and service in the medical equipment industry, there is perhaps no individual who has impacted the business more profoundly than Ed. Even if his name is not familiar to you, there are probably six degrees of separation between him and the equipment maintenance team at your facility.

Ed’s remarkable story is composed of a unique mixture of business intelligence, concern for individuals and being at the right place at the right time.

Sloan Enterprises
After graduating from high school and attending Tennessee Tech and Middle Tennessee State College, Ed enlisted in the Marine Corps in 1959. He was stationed at the Marine Barracks NSA as a legal aid in Fort Meade, Maryland and was there for four years.

After leaving the Marines, he went to work driving trucks for a common carrier. A decade later, Ed started spending his off time working for the family's real estate business part-time, but he remained a truck driver for almost 25 years.

In 1985, his son Eddie, a student studying electronics at ITT Technical Institute, lost his right arm in a motorcycle accident. In part, as a way to embark on a new adventure together, father and son — along with Ed Sr.’s brother and sisters — started an electronic salvage reselling company called Sloan Enterprises.

That same year, Ed was introduced to a woman named Wanda through mutual friends. In 1986 they were married and began a very eventful journey together.

For a while, Wanda worked in the business and I remember working with her. She was as nice then as she is now and she was always five steps ahead of you.

Business was humming along, and in early 1987 some friends informed Ed of something that would change everything. There was a GE Medical Systems refurbishment center in Milwaukee shutting down and a huge lot of salvage medical electronics that would soon become available. GE had made an arrangement with the IRS whereby they could receive several million dollars in inventory reduction credit but they would need to physically dispose of the equipment in order to qualify for the credit.

Due to environmental concerns surrounding polychlorinated biphenyls (PCBs), a toxic contaminant found in oil used on electronics, dumping the equipment in a landfill was out of the question. Since Sloan Enterprises had access to the necessary warehouses and trucks to offload the equipment, they cut a deal with GE based on the estimated scrap value of the metal.

“We took a single GE CT 8800, weighed it, made a guess on how much steel, aluminum, copper and other materials were in it,” Ed recalled. “There were 39 CT 8800s that were selling on the market at the time for several hundred thousand dollars each and we paid $2,600 apiece for them.”

All told, Sloan Enterprises purchased 55 truckloads of medical equipment at a price of 18 cents per pound. During the 14 months it took to haul the equipment from Wisconsin to Tennessee, they began hiring individuals familiar with the equipment.

ReMedPar
For those of you who are old enough and have enough gray hair, you remember that there weren't many ISOs back in those days. Some of you remember Datascan, R Squared, Mediq and Medical Systems Support Incorporated (MSSI). These were the original independent service organizations, back when very few people knew what an ISO was. These pioneers needed the parts that Ed had so that they could maintain their systems.

“It didn’t take long for word to hit the street that there was a company in Tennessee that bought all of the scraps from the refurb center,” recalls Ed. “Having access to those parts at a price that was affordable was the game changer that allowed [ISOs] to compete with the OEM service business.”

These companies were hiring engineers who had GE experience, and now that they had access to repair parts, they could introduce a training element to spread those capabilities more efficiently throughout their staff. This knowledge was proliferated through people like Bill Burke and other seasoned engineers who Ed describes as “super stars” in the ISO market.

As training capabilities became more robust, the independent medical equipment service market went from a few small companies to a booming industry. Around 1990, Ed and his family founded their own parts repair company and called it Reliable Medical Parts or ReMedPar.

The company was created entirely off the sale of a single product, an array processor from the GE refurb center that Sloan paid $39 for and sold to R Squared for $62,500. Ed hired a couple of engineers from the digital board repair department that had been laid off by GE and started working on CT and X-ray.

As the 20th Century came to a close, ReMedPar was still going strong but the windfall profits from the early days had given way to thinner margins and greater competition.

A lot of moving parts
“In the mid-to-late 90s the OEMs were exerting a great deal of pressure in the market to attempt to minimize the effect of the third party service and equipment providers,” said Sloan. “For example, GE acquired Innoserv (a combination of Mediq and R Squared) the leading independent service group and National MD a service provider located in Ohio.”

If you remember those original ISOs then you probably also remember Comdisco. For a few decades, the computer leasing company was one of the biggest business success stories in the country. By the mid-90s the multibillion dollar company had established a Medical Equipment Group that was overseen by a fellow named Chip Halverson.

When Comdisco decided it wanted to get rid of the medical unit, Chip and Ed explored ways they might combine it with ReMedPar. In 1999, together with John Bardis and Galen Partners, the three of them formed MedAssets as a parts and refurbished equipment company.

During the second year of operation, John Bardis changed the direction of the company to a GPO and sold ReMedPar to Three Cities Research to support COHR (Masterplan). GE Capital wound up with the Comdisco medical business in 2002 and shut it down a year later.

Throughout all that activity Ed stayed on with ReMedPar. Then, in 2005, Mark Graham was brought in to help sell the company to the next private equity holder. As Ed says, “it was time to put a little more lipstick on that pig and get it sold.”

Ultimately, it was purchased in 2007 by Berkshire Partners of Massachusetts for a 14x multiple of EBITDA.

Ed retired from ReMedPar in January 2008, but in February 2008, along with Kelley Nelson as the only employee, started a consulting company to assist ReMedPar and other entities in areas where they had little or no expertise. “We literally worked out of our homes for the first several months,” Ed recalled.

Berkshire asked Ed to interview Rob Piconi as a possible candidate to run the company. Ed liked him and Rob was hired as the president. While overseeing the business, Rob was also building up MESA in Europe as part of ReMedPar. MESA was the first pan-European independent service provider.

Aramark bought ReMedPar two years later, but did not have an interest in the international market so Rob bought MESA and suggested Ed roll his new company, Ed Sloan and Associates, into that network. Ed, and sometimes Wanda, moved to Lugano, Switzerland and traveled around Europe building the company that for a time was known as Pantheon.

Fast forward to today and Ed's company, along with six other European companies, are now part of the Althea Group, which some value at more than $1 billion.

A lot has changed over the last two decades, and although OEMs are no longer buying up refurbishers the way they had been, Ed says there are new strategies in place for dealing with third-party competition.

“The approach of the OEMs in the current market seems to be more aligned with some technology advancements with hardware but more importantly the software development designed to lock out any service provider that does not have the proper service keys and/or passwords,” he said. “If successful this action will ensure that as the equipment install base is upgraded that the manufacturer will be the only entity capable of servicing the equipment.”

It’s a challenge that Ed expects to see play out over the next few years, and something that is not unique to healthcare but will be seen in many industries where technology is serviced at a competitive price by non-manufacturers.

Business is about people
If you got a little lost navigating all those business transactions, you’re not alone. The increasing complexity and consolidation of the independent medical equipment industry is no secret, but many people may not realize how closely Ed Sloan is linked to different organizations.

Indeed, his fingerprints can be seen all over the industry.

Ed served as an incubator for many, many companies and even though people left him to start their own businesses, he always maintained good relationships with them. As a matter of fact, I don't know of anyone who has ever had a bad word to say about Ed. He is a fellow who never loses his temper and never loses his cool. Also, I don't know if I've ever heard of him burning a bridge.

I asked Ed who he credits his success to and he immediately named Paul Thomas as a mentor; a former R Squared employee who later did some consulting for ReMedPar.

“It wasn’t something where you could say ‘Paul said this’ but just a combination, where he helped me through a host of tough mental things,” he recalled. “He gave me a lot of creativity that was simple and effective, that I don’t think others would have been able to do.”

Back in the waiting room
I got a little sidetracked there and forgot to tell you what happened when the unhappy administrator finally arrived at the Washington state facility where Ed was sitting after taking a red-eye flight the night before.

He didn’t have the necessary part with him, but it had been ordered and was en route from New York. In those days, you could take a part to the airport and transport it on a flight as if it were a piece of checked luggage, (they called it “counter-to-counter”).

When the administrator arrived, the service engineer told him that Ed Sloan from the parts company was in the lobby waiting for him.

“So Ed, you flew out here just to see me?,” he asked.

“Yessir,” Ed replied. “I flew out here to sit and wait for that part to arrive and let you take out any anger you may have about this situation on me.”

From that point on, as Ed tells the story, the administrator was the most agreeable guy you ever met. Meanwhile, a biomed was at the airport to retrieve the part, which arrived on schedule. By 2 p.m. that afternoon the facility was back in business, scanning patients.

More than once, Ed Sloan has given me the advice, "Don't get wrapped around the wheel on something that doesn't matter!" I think that tells you everything you need to know about Ed Sloan.
It’s sound advice from a man with over two decades of experience as a truck driver. He takes the high road and that has made him a success.

I am not alone in my praise for Ed, I spoke to some senior people in the industry and this is what they had to say:

I started working for Ed in the mid to late 90's and was with him until his retirement this year. Ed's life revolved around work and he expected the same from others. Phone calls at 11:00pm and midnight runs to the warehouse were common events. Because there was no separation of work and home life, my kids have been raised around this business and Ed has been a constant in their lives.

I could talk for days about the lessons I have learned from Ed: a $10.00 sale is just as important as a $10,000.00 sale; you can't manage from behind a desk; serve your coworkers. But I am most grateful to him for passing life lessons on to my kids, who I hope will pass them along to others. My daughter learned, at the age of 7, to use a wrench by spending a Saturday afternoon helping Ed remove parts from a MRI cabinet. A few months ago, Ed played the role of chauffer for her and her date on prom night. He taught my son the importance of a firm handshake, looking people in the eye and treating all customers with respect.
- Kelley Nelson

When we made a decision to enter the Healthcare business as a manufacturer of CT X-ray tubes and related components, Ed Sloan was the first person we met for recommendations on product and market strategy. To this day, Ed is always there to provide guidance. Like many others, we consider him our godfather in this business.

I loved Ed’s story on how he started in the business driving a semi-trailer to Milwaukee to buy surplus/scrap from GE Medical. He purchased a semi load and drove it back to Nashville. GE referred a customer from California who wanted to buy a power supply that GE sold to Ed. The customer flew out and went through the trailer load of surplus; he located the skid where the power suppliers were. He told Ed he would give him $25K for what Ed thought was the skid. Ed agreed and the man took only one power supply! Paid for it and left. Ed thought, “WOW! There is a good business in medical,” and so Ed Sloan and Associates was born.

Ironically, when I started in the business, the GE tube division in Owensboro, Kentucky called me and wanted to sell a semi-trailer of surplus industrial and receiving tubes. I took a Greyhound bus to Owensboro and was shown a lumber yard full of surplus tubes. GE told me they needed the space and I could fill a 40 foot semi with tubes for $500. 24 hours later I was on my way home with a semi-trailer loaded with tubes that funded the start of Richardson Electronics growth.
- Ed Richardson, CEO of Richardson Electronics

Shortly after the start of my career in this industry, I was given the opportunity to work for Mr. Sloan. During my five years at Ed Sloan and Associates, Ed provided opportunities to grow my skill set and rise to a management position. When the day came for me to branch out and start my own business, Ed was very supportive. He is one of the most genuine figures in our industry that treats the janitor with the same respect as the CEO. To this day, I consider Ed Sloan a mentor and personal friend whom I will always appreciate and respect!
- Chad Fowlkes

In early 2014 I had a surreal meeting with Ed Sloan and others, to discuss the possibility of creating the largest independent healthcare services company in Europe. Its Ed Sloan, so it is going to happen right? Today that company operates in over 20 countries, employs more than 3,000 people and is known as Althea. When Ed Sloan thinks big, it’s time to step up and think as big as you can.

I have the privilege of working with Ed Sloan, let me just say that he is a man who, at 78, has remarkable stamina. For instance, Christmas parties are usually a lot of fun but if you are in the infancy of setting up an international business, then Christmas looks a little different. With budgets having to be set, presentations made and speeches to be made in Poland, Switzerland, France, Italy, UK and the US, even the most seasoned of us will find this a little tiring. With excess food, drink & socializing along with grueling flight schedules and very late evenings, there is a limit on how many parties one can cope with. Not Ed Sloan, last to bed, up first for breakfast, 14 hour days.

Meanwhile, I am utterly exhausted. I look at a man older than my dad and ask him, "how are you doing?", hoping he would do the English thing and whinge about how tired he was. Nope, he just said "doing fine, doing fine" in his southern drawl. “Pace yourself,” he advised. This is a man who is comfortable working and playing hard on an extreme basis.
- Stephen Hodgson

I've known Ed for about 15 years, and to me he epitomizes the phrase, "making it personal". To Ed, business and personal relationships blended and were equally important. He never had a business-related discussion without asking how you're doing, how your family is doing, and what's going on in your life. A lot of guys will give a nod to a personal icebreaker but without sincerity. Ed always made sure the personal relationship was on solid footing and trust was established as a foundation for any professional interaction. And he has always been refreshingly transparent and direct. He's always been a great guy to work with, and you never have to worry about whether he'll back up his words.
- Joe Shrawder

Things about my ole buddy Ed:

In business: He's the only one I've seen that thought well of employees starting their own company. Most would think of them as competition but Ed would work with them and he made money helping them get started. At one time I heard there were 23 companies that started due to Ed. He really thought and wanted the best for everyone.

As a friend in business: Ed and I would have the best time even though we were working. He made work easy. He was always around the best of the best and it made me a better business man by me just being around him. We would be out working somewhere in the world and he'd always take time to see something new or do something fun. He's the kind of person that when Ed talked, everyone would listen.
I sold some parts one time with him and I bought us a boat. I called him up and said, hey we just bought us a boat. What kind he asked. A fishing boat. Great he said. So I took it to Nashville and after a year and only one trip to the lake I gave him his half of the money and said, your just having to mush fun at work to own a boat.

I remember he said in 2010, "Rick I think I'm ready for round two". And boy was it a great round two!

As a friend: Love him. I really enjoy my time with him. When we're drinking a totty and remembering the things we've done, the stories are great. I'm really glad to see him finally enjoying his time off. That's something I thought I'd never see. But it wouldn't surprise me if one day we hear, " Rick, I'm ready for round three."

Not just my view. He's the God Father of the used medical equipment and I've heard this from people all over the world and I've been with him on most of his adventures.
- Richard Lee

Congrats on the Lifetime Achievement Award and Thank you Ed! Those two words do not come close to how ReMedPar and you changed by life, not only for me personally but our industry as a whole. Who doesn’t love the story of ReMedPar and how it started? You put the parts industry on the map. The seven years I spent working with you has been a huge influence on my career and life.

I look back on some funny stories such as the “Priceline” trip you booked from California to Nashville that took 3 days. The walks around RSNA with you, which would take hours as everyone wanted to talk to Ed. There are so many fun memories and just great times wrapped up in those seven years. We worked hard but had lots and lots of fun.

A lot of where I am today goes back to things I learned from ReMedPar and you. In all of your endeavors, you have never lost your entrepreneurial spirit and I am thankful for the insight and wisdom I have learned from having had the privilege to learn and work alongside you, Mr. Sloan.

I want to thank you and “Home” Wanda for treating me as part of your family, which I am. I can honestly say one of the memories I cherish and miss the most are the morning chats we would have about life over coffee.

Congrats ED!
- “Work” Wanda

I have known Ed since the mid 80's and my hospital career. Ed was a legend in Nashville in the radiology space. As I transitioned to working with a radiology group and due to the high costs of using OEM's, our practice began working with Ed. He was known for always coming through getting our equipment operational and finding parts when the OEM's could not. Over the years, Ed became my exclusive seller and service company of used equipment. There is no one I respect more and value their opinion on equipment than Ed Sloan.
Your friend, Mike

When I think of Ed Sloan I think of Integrity and Respect. Ed always operated with the highest level of integrity and consistently treated everyone with respect. Over more than twenty years of buying and selling companies and who knows how many meetings Ed always genuinely showed both of those characteristics. That allowed him to relate to everyone from the guy in the back of the warehouse to sophisticated private equity.investors.
Everyone wanted to be with Ed.
- Chip Halverson

Ed Sloan is a terrific guy with a wonderful sense of humor. He was a great addition to the IAMERS Board of Directors. Always great fun to be around.
- Diana Upton

Back in the day when ReMedPar and R squared were essentially just getting off the ground, I had the pleasure of meeting Ed at a meeting of the AHRA. We talked about our needs and wants and Ed’s ability to meet those expectations. I was pleasantly surprised to the degree that they went about meeting and often times exceeding our requirements on a daily basis. But more importantly I got to know Ed on a more personal level. We spent countless hours together discussing business, philosophy, politics, and the future of our industry. We traveled all over the world to various professional organizations and individuals always with the desire to open up new markets while building quality relationships that eventually became friendships.

Certain people will come and go. But one out of a thousand will make a lasting impression. I’m pleased to tell you that one in a thousand is Ed Sloan, my friend a man of integrity, good will, discipline and great great character.
- Paul Thomas

Few in our lifetime can say that they created an industry. An industry that then spawned countless companies, mergers & acquisitions and even crossed continents while re-setting the legal landscape to ensure a level playing-field for companies to provide critical equipment services to healthcare systems that were yearning for alternatives to improve the quality of patient care. I was proud to carry that legacy, the legacy of Edward Sloan Sr., the man that inspired my own entry into the healthcare sector back in 2008 when I showed up on the front doorstep of his home in Goodlettsville, Tennessee and we agreed that there was more work to be done.

Our fortuitous intersection yielded a regional extension of my own in the European theatre that was first known as MESA, today Althea Group and Chronos Imaging to name a few. From his humble beginnings in 1987 to the closing curtain call, Ed Sloan remains the "gold standard" in this industry that he helped author with his vision, passion, humility and courage that will forever be remembered yet never replicated.
- Rob Piconi

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