It's generally a buyer's market for CT with plenty of inventory available.

"There is stuff to buy. There is no shortage," said David Denholtz, CEO Integrity Medical Systems, Inc., Fort Myers, FL. "If somebody wants a multi-slice scanner there are plenty of 4, 8, 16 on up. And there will be more inventory because places are going out of business."


Independent Service Organizations Holding Steady

While 2007 was a challenging year for the OEMs, most Independent Service Organizations (ISOs) are expecting steady sales in 2008 for pre-owned equipment. They also expect new service opportunities for equipment coming off of OEM service contracts or warranty.

"The current market conditions have been extremely beneficial to third party providers," said Tim Austin, President, Austin's X-Ray Service, Swanton, OH. "Any time the market is tight, facilities pay more attention to how they are spending money. During these times they tend to look to third party providers because they can usually offer lower prices."

In speaking with independent service organizations, DOTmed estimates that hospitals can save 15-40 % on CT service by using an ISO instead of the manufacturer. (Note: It is important to do your homework when choosing an ISO. Make sure that they stock CT parts and have trained service engineers available regularly. Many health care providers go to DOTmed.com to see online ratings for ISOs provided by their customers. See the list at the end of this story: DM 100 companies are the highest ranked, while DOTmed Certified indicates a favorable evaluation by a different assessment process.)

"I think the market conditions are good for third party providers," said Lynn Williams, President, Advanced Imaging Management, The Woodlands, TX. "It feels much like the mid to late 1990s again in that the user is really doing their homework and looking for a cost-cutting edge, and the third parties have really raised the standard for equipment and service."

Not all ISOs share in market optimism, however. It appears that supply and demand may both be down.

"Outpatient imaging centers are not buying new equipment; they are either holding their breath or going out of business," said Tommy Geske, CEO, Sunrise Medical Technology, Inc., Waxahachie, TX. He noted that you would expect the used medical equipment market to be flooded with inventory right now, but the protracted bankruptcy process that some clinics face is holding the assets hostage. "This tells me that a year from now there will be a huge glut [of equipment] on the market, but right now things are tied up."

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