by John R. Fischer
, Senior Reporter | May 24, 2023
Recognizing a trend toward multivendor HTM, Siemens Healthineers and nonprofit health system CommonSpirit Health have teamed up to acquire Block Imaging, a provider of refurbished medical imaging equipment, parts and service.
As providers seek lower costs and faster equipment service, they are looking in-house, Shawn Beals, VP and head of corporate development and strategy for Siemens Healthineers Americas, told HCB News. The acquisition of Block Imaging will expand the OEM's stake in multivendor HTM service by leveling up its expertise and access to parts harvesting.
“We think closer partnerships between provider organizations like CommonSpirit and industry, like Siemens Healthineers, just become critical to solve some of the challenges in healthcare. We can’t just do it with provider organizations working alone and OEM organizations working alone,” he told HCB News.
CommonSpirit Health, a $29 billion Chicago-based health system formed in 2019 through a combination of Catholic Health Initiatives and Dignity Health, brings a service network of 400 engineers to the deal, creating “a natural demand for parts,” according to Beals.
"Increasing access to medical equipment parts can help health systems keep costs down, expand care for patients, and reinforce a commitment to sustainability in healthcare," Peggy Sanborn, senior vice president of Joint Venture Partners at CommonSpirit Health, told HCB News.
Block Imaging has a team of expert service engineers as well as a virtual network of engineers that service MR, CT, X-ray, mammo, molecular, C-arm, fluoroscopy, and mobile MR and CT equipment. It also has a parts organization with ISO quality standards and a stock of 35,000 parts ready to ship.
Per the agreement, Block Imaging will retain its name and branding, and remain a stand-alone organization, continuing to supply equipment, parts, and servicing across different OEM imaging solutions globally and in the U.S.
Josh Block, president of Block Imaging International, says that under Siemens Healthineers and CommonSpirit, the company will be able to scale and grow its reach.
“This acquisition is a shining example of the innovation needed to tackle the economic challenges facing the U.S. healthcare system," he told HCB News. "Refurbished equipment, parts, and creative service alternatives all play a critical part in this endeavor.”
Upon completion of the deal, CommonSpirit and Siemens Healthineers will become shareholders and board members within Block Imaging.
Obtaining the necessary regulatory approvals is expected to take one to three months, with Siemens Healthineers hoping to have the deal completed by fall 2023.