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GE software, my take

by Philip F. Jacobus, CEO | August 10, 2016

Independent parts companies
I see independent parts companies as the biggest winner. A diagnostic imaging system without the optional software bundled will now sell for less which means parts companies can buy systems for less money and harvest more parts. So, the parts companies will be able to buy parts for less.

I suspect this will drive the price of parts down because the barrier for entry for an independent parts company will be lowered. If equipment sells for less because optional software is not included, then it will make it easier for small players to buy systems and stock parts.

Independent service companies
I do not think independent service companies will be hurt. In fact, I think they will benefit.

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If a health care provider is not in a position to buy a new piece of equipment with the latest software because they are strapped for cash, if they have to buy a used item and then pay extra for the software, they are now going to be even more strapped for cash and their need for a contract with an independent service company will be even greater.

So, as I see it, independent service companies will benefit from this decision.

Used equipment brokers
The real losers here will be the used equipment brokers. It is true they can buy equipment for less money but it is also true they are not going to be able to compete because of the costs of the optional software.

I have often said that if you are a used equipment broker, you better do something different because unless you add value to the transaction, the Internet and all other market forces are going to squeeze you out of the transaction.

Obviously, there is only so much ground I can cover in this short blog entry but from 30,000 feet in the air, that is my analysis of our winners and losers.

What is your opinion?

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About Phil Jacobus

Phil Jacobus has been involved in health care since 1977, when he visited China to sell equipment. He has done business in 35 countries and still travels extensively. Phil is active in charity, helps rural clinics and always tries to help DOTmed users when he can.

Phil is a member of AHRA, HFMA, AAMI and the Cryogenic Society of America. He has contributed to a number of magazines and journals and has addressed trade groups.

Phil's proudest achievement is that he has been happily married to his wife Barbara since 1989, who helped him found DOTmed in 1998.

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