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DOTmed Industry Sector Report: Endoscopy Sales & Service

June 04, 2008
Endoscopy

Vision Sciences'
Video Cystoscope



The Role of The Independent Service Organization

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As new developments move the market for endoscopic equipment, buyers face the prospect of what to do with older models.While the OEMs show diminished interest in such equipment, it does open the door for independent service organizations that refurbish, service and repair the scopes. Some ISOs specialize in specific scopes, while others tackle the full range. In addition, ISOs are more responsive to hospitals' needs, and better able to deliver whatever service is required without getting bogged down in the bureaucracy that characterizes OEM procedure.

Asked about ISOs' prospects in picking up the slack, Dave Bello, who runs Endoscopy Replacement Parts, Newberry, FL, suggested, "It is difficult to pinpoint any one challenge or opportunity. I believe that quality in the aftermarket is a challenge that we are helping to improve everyday."

Referring to the sometimes-contentious relationship between OEMs and ISOs, Scott Mason of Endoscopy Resources, Port Orange, FL, says, "The biggest opportunity is that many facilities are willing to use an ISO for more repairs, due to the over-inflated prices from the OEMs."

The actual work involved ranges from the simple to the complex. In some cases, ISOs rebuild an entire scope, while others concentrate on cleaning or replacing a scope's lenses, lights or the functions of working channels. Scopes are often damaged during routine operations, meaning that many DOTmed-registered companies have ample work.

Alberto Voli of Med Fix Solutions, Tucson,AZ, says, "the easiest repairs are those that involve broken lenses. The hardest," he adds, "are those requiring
repairs to a scope's fiber optics."

Another observation about the repair and refurbishing side of the business comes from Mitchell Guier of North American Medical, Sweet Springs, MO. For the succinct albeit accurate Guier, the main issue facing ISOs is the acquisition
of "parts, parts, parts."

One huge factor that's also propelling the ISO side of endoscopy is financial.
As pressure to control costs looms larger with every passing day, more and more hospitals are considering the advantages of purchasing refurbished equipment. It's generally estimated that refurbished scopes cost approximately half of what a new piece of equipment sells for.