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Special report: Choosing service contracts

by Loren Bonner, DOTmed News Online Editor | August 17, 2012
From the August 2012 issue of HealthCare Business News magazine


  • Only pay for what you need. How much to pay is always an important issue with service contracts. Cost depends on the needs of your equipment, your usage profile and volume of patients, and the flexibility of your provider. We recommend asking for a list of options that would fit your range of needs.


  • Look beyond the service to what other support a provider offers. Different types of equipment require different kinds of service contracts. For example, MRI image quality and performance are impacted by environmental factors. When looking for an MRI contract, ask yourself if your provider supports you with real-time monitoring of those parameters, including preventive notices to help maintain the right environment. A provider must be able to help manage conditions in and around the MR suite such as temperature, humidity, electricity, cryogen levels, and more.


  • Pick a provider with flexibility. We find that many organizations we work with are holding onto their imaging assets a little longer than in the past, which can cause service to become more complex. Limited availability of service parts/software and engineer skills, among other factors, can combine to create challenges. Additionally, imaging center leaders now look for flexible plans, including plans tied to the volume of patients being seen each month. Ensure that your service provider can cater to special considerations and ask about how they can support you in those needs.


  • Justine Kennelly, director of marketing, imaging systems customer services, Philips Healthcare North America

    Justine Kennelly, director of
    marketing,imaging systems
    customer service, Philips Healthcare

    • Full or comprehensive service agreements cover labor for on-site and remote technical response, parts delivery and replacement coverage, and planned maintenance. This type of agreement might be appropriate for your facility if speed of service is crucial in an effort to reduce downtime and costly diversions.


    • In-house support service agreements support organizations with in-house engineering teams by providing access to original equipment manufacturer (OEM)- trained technical expertise and parts replacements at preferred pricing. Service labor arrives on-site or remotely only when the in-house team requires backup support. This type agreement might be right for your facility if you have an in-house team that requires occasional back-up from technical experts or is in the process of developing a stronger capability.

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