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DOTmed Industry Sector Report: Respiratory Equipment Sales and Service Companies

September 05, 2007

Not too big to care about smaller customers

Michael Callaghan, president of ISIS Medical Solutions, LCC of Atco, NJ, has years of experience in the medical industry. His company specializes in infusion and sequential compression devices, as well as respiratory equipment. But when it comes to respiratory equipment and the trends in the market today, Callaghan is careful about what he sells, because he feels that there is a definite level of risk and liability for anyone in the business. And he also bring a personal touch to what he does. "We are a group of family and friends, because you help those who have helped you in life - it's a bond that should not be neglected or forgotten," says Callaghan. "For example, say a man passes away who had been home for several months on a respirator. Because that made had a back-up respirator, which is required, the man's wife now has two respirators that she has no idea what to do with. I will ask her what she paid for the respirators, and if I can offer her a reasonable price that she is happy with, I will buy them from her," says Callaghan. "But if I don't feel I can accommodate her, I will refer her to a larger company that is more equipped to deal specifically with used and refurbished respirators." Callaghan believes that, "in this business, if everyone was willing to give referrals, many problems would be eliminated." For instance, Callaghan may refer a customer to Tim Schehl, Service Manager at Bemes, Inc., in Fenton, MI.

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Breathing fresh life into used equipment is what ISOs do

Bemes, Inc. deals in sales, service and rentals of respiratory equipment, and is a leader in the respiratory medical equipment business. "From my end, as a service manager, the respiratory equipment business is all good," says Schehl. "We specialize in buying and selling used and refurbished ventilators - accessories and parts, and all of our equipment is advertised on DOTmed - which we consider to be a "big player" in promoting our business. Many of our customers are international. Hospitals in many foreign countries can't afford the latest, state-of-the-art ventilators, so they go to companies like Bemes, which will sell them totally refurbished equipment that perfectly serves the needs of the hospital or any other medical facility." Schehl explains that a brand new ventilator may cost $25,000. "A teaching hospital - say, in New York City - may keep this ventilator for a couple of years, and then replace it with more modern technology. The ventilator is still totally functional, and can be bought from the hospital by us, and sold at a greatly reduced price to smaller hospitals in the United States or overseas."