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DOTmed Industry Sector Report: Bone Densitometer

October 30, 2007

Integrity Medical Systems of Fort Meyers, Florida has one of the largest medical equipment inventories in the country, including 70 to 80 bone densitometers in stock at any given time. CEO David Denholtz believes that when someone buys equipment from Integrity Medical Systems, they aren't just buying the equipment - they are buying into the company. Says Denholtz, "we sell from stock and have our own parts inventory and a dedicated factory-trained, bonded service team that specializes in refurbished and new bone densitometry equipment and parts. We have over 150 systems installed worldwide, 70-plus systems in stock and over 10,000 parts ready to ship. We treat our business like a science - offering the highest level of service and commitment to our customers." This CEO knows that servicing healthcare professionals, dealers, hospitals, OEMs and a host of international clients is a huge responsibility, but his company does it and does it well.

One of Denholtz's main concerns is the DRA (Deficit Reduction Act) and how it will affect Medicare reimbursement rates. He is worried that Medicare will pay less than the estimated cost of performing the procedure in physician offices, and that independent reimbursement for the bone densitometry tests necessary for the diagnosis of women at risk for osteoporosis (a recently enacted Medicare screening benefit) will be reduced by over 40%. "It will force many doctors and centers that offer bone density tests to discontinue the service, and that will definitely affect companies who sell densitometers and medical equipment," said Denholtz.

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Metropolis International of Long Island City, New York buys, sells and rents quality pre-owned medical equipment. President Leon Gugel believes that when it comes to densitometers, "any system that a hospital or clinic purchases should be purchased from a trusted and reputable company. The end user has to find a comfort level with a particular company or person and then move on to pricing and manufacturer preference." Gugel adds, "if a hospital is dealing with a reputable company like Metropolis International, they will always get a great price and great service." When asked what he felt the biggest challenges were facing bone densitometer ISOs (independent service organizations), he said, "Having the right experienced people to perform the work that may be required. Some people fix things without really knowing what they are doing." He said that the most common problems with bone densitometers are the drive belts or a missing positioner, but over the past 10 to 12 years, the bone density systems are "good robust" systems that are pretty much "break free."