Health care organizations also need to balance the risk and costs of service associated with OEMs, multi-vendor and full-service providers, and ISOs in relation to the lifecycle of their equipment. In a recent independent market survey of 189 health systems by Sg2 Consulting, 67 percent of health care organizations reported that they planned to move their equipment service operation in-house in the next 18 months. Another 67 percent said they experienced significant challenges when undergoing technical and personnel training for their new operation, while 50 percent said they were more daunted by the issues of repair-cost volatility.

The Sg2 survey asked hospital decision makers what their main objectives were in moving equipment services in-house. For those who had already undergone the move, 89 percent said reducing repair costs was a main goal. Next up, 86 percent said improving equipment repair response was important, and 81 percent relayed how improving service management overall was key. Reducing parts sourcing costs and improving quality of repair came in at 61 and 56 percent, respectively. How hospitals and IDNs go about sourcing high quality, low cost parts also makes a big difference. There are a wide variety of exchange programs available.


The American Recovery and Reinvestment Act of 2009 should help fund health information technology, including electronic medical records and other systems, but capital spending will still be in "frost" mode going forward into 2010, says Kintner. "We can expect capital control to continue to be a focus moving through 2010 and into 2011."

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