[This report originally appeared in the July 2008 edition of DOTmed Business News]

The most critical and expensive component of today's CT scanners is the X-ray tube (glassware). Replacing one can cost, depending on the make and model, in excess of $150,000.

When a CT X-ray tube fails it needs to be replaced immediately to avoid downtime. The $64,000 dollar question - no pun intended - is how many times, if at all, will a healthcare facility need replacement tubes during the year? There are several factors to consider, such as the number of scans/month a machine performs and the number of machines a facility has in use. If replacement costs spike, it can cause financial headaches.
This is why several major X-ray tube manufacturers now offer what essentially are tube insurance programs. The goal is to help predictably manage glassware costs going forward for an annual "premium."

Dunlee has a menu of options

Dunlee, a division of Philips Medical Systems, offers its Glassware Solutions program to help alleviate unpredictable and costly tube expenditures. The program is used by service providers, asset managers and in-house clinical engineers for hospitals and imaging centers.

"The idea behind Glassware Solutions is to pay a fixed monthly fee for as many tubes as needed for any particular system," said Thomas T. Spees, Director of U.S. Sales for Dunlee. "We are matching the expense they would have to pay with the potential revenue they could receive from the CT system."

The company would not provide specific pricing information, as it varies greatly by customer and product type. However, they explained the program's customized pricing structure, including three types of contracts, typically 36-months in duration:
· Glassware Solutions Classic provides fixed pricing and no glassware risk.
· Glassware Solutions Risk Pool has stable monthly pricing, but at the end of each contract year, price adjustments are made to ensure the customer receives a 10 percent savings compared to the transactional value of the tubes consumed.
· Glassware Solutions by Design is a custom solution that can be developed with a customer's specific glassware coverage needs in mind.

Each type of contract has three usage tiers. The tiers are based on the amount of scans consumed on the warranty:
· Low Use Tier: For customers consuming less than 30% of the scans seconds (a measure of single-slice scanner usage) or amp seconds (multi-slice usage) allowed under the tube's warranty each year. An example of a typical low-volume application might be outpatient oncology.

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