The current MR market and outlook
September 07, 2022
By Edward Rodriguez
MR capital equipment is a technology for which hospitals and outpatient facilities must budget in advance. Factors that make planning for an MR system important include not just pricing but construction needs, logistics, current and future usage plans, cost of ownership, reimbursements, and service contracts. In addition, within the MR market, providers have the option to consider purchasing used, refurbished, or new MR systems from vendors and dealers. According to the American Hospital Association, the estimated useful life expectancy of an MR system is 5 years. However, many clients are retaining their MR systems for 10 to 15 years, and in some cases longer, to maximize their return on investment. Extending the life of an MR system is achievable with a wide range of upgrade options that respective suppliers offer.
In the United States, the MR market is expected to grow at a steady rate primarily due to two factors: an increased demand for MR systems in hospitals and ambulatory facilities, and an increase in the geriatric population.
Suppliers are cognizant of decreased throughput due to patient comfort, workflow processes, redundancy, and in some cases real estate limitations that providers have encountered. To assist providers with these obstacles, suppliers have designed systems with a smaller footprint, larger patient apertures, and software options to increase workflow efficiency and to limit the amount of time a patient is on the table.
Major MR suppliers
Currently, five major suppliers offer provider organizations various MR solutions within their portfolios: Siemens Healthineers, GE Healthcare, Philips Healthcare, Canon Medical Systems, and Fujifilm Medical Systems. In the U.S., there are approximately 13,000 MR systems, and of these:
• 60% to 75% utilize a 1.5T MR system
• Less than 25% utilize an MR system below 1.5T
• 10% utilize a 3.0T MR system (Rink, 2019)
symplr Spend's Provider Evidence database shows that 77% of quotes submitted for analysis include a 1.5T MR system, 21% include a 3.0T MR system, and 2% include systems below a 1.5T magnet strength.
Most popular suppliers by quote activity
Over the past year, symplr has received over 250 capital purchase quotes for benchmarking analysis related to MR technology. Siemens Healthineers has been the most active supplier and reflects 56% of the activity in our database, followed by 31% for GE Healthcare solutions, 8% for Philips Healthcare solutions, and the remaining 5% include Canon Medical and Fujifilm solutions.
In the 1.5T market segment, we show Siemens Healthineers’ MAGNETOM Sola 1.5T MR system as the most popular. The second most popular system is the Signa Artist 1.5T, offered by GE Healthcare, and the third most popular is the MANGETOM Altea 1.5T MR system by Siemens Healthineers. In the 3.0T market segment, we show Siemens Healthineers’ MAGNETOM Vida 3.0T MR system as the most popular, followed next by the Signa Architect 3.0T offered by GE Healthcare, and then the Ingenia Elition 3.0T MR system offered by Philips Healthcare.
MR pricing and configuration
Each MR system is capable of being configured with a wide variety of hardware and software options dependent on its current and future utilization. With this in mind, one can expect the total street price of a system to vary by location. To assist our provider client members with budgeting, our Market Intelligence solution includes Price Fast Facts. Part of our Price Fast Facts data lists a calculated average quoted price (AQP), which is based on the pricing data gathered from the quotes that have been submitted by our more than 3,300 provider client members within the last 12 months.
In the 1.5T market segment, the MAGNETOM Sola 1.5T reflects an AQP of $1.6 million, the Signa Artist 1.5T MR system reflects an AQP of $1.4 million, and the MAGNETOM Altea 1.5T MR system reflects an AQP of $1.1 million. In the 3.0T market segment, the MAGNETOM Vida 3.0T has an AQP of $2.2 million, the Signa Architect 3.0T reflects an AQP of $1.9 million, and the Ingenia Elition 3.0T reflects an APQ of $1.4 million.
MR service contract considerations
Service contracts are often the largest source of profit for manufacturers. Estimates reflect that medical capital equipment is an estimated $3.5 billion industry in the U.S. Key areas to consider when purchasing an MR system service agreement include the term length of your contract; principal coverage period; preventative maintenance (PM); the UPS, chiller, and ACR support; education; software upgrades and support; peripheral units; and coils. Consider adding a requirement to your contract that all PM is conducted during time frames that will not interfere with the facility’s normal patient operation hours.
About the author: Edward Rodriguez, MBA, R.T. (R) (MR), is a clinical expert with symplr who specializes in MR, SPECT, and molecular imaging. With deployments in 9 of every 10 U.S. hospitals, symplr is the leader in enterprise healthcare software and services.