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DOTmed Industry Sector Report: CT Sales and Service

by Barbara Kram, Editor | June 13, 2009

Listen to more than talk. You are investing in something you will have for a number of years and is a critical component. Visit the service provider's facility. It might take a day out of your schedule but it is a day well spent. Can they do emergency repairs? Do they stock parts? What about tracking and record keeping? Evaluate the support network. If you have a major disaster with your machine and whole gantry needs to be replaced, can they take care of it? Your reputation is riding on your CT.
- Greg Kramer, President, C&G Technologies, Inc., Jeffersonville, IN
Vice President, ADM, Elmhurst, IL.

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"Our primary market originally was more rural areas or clinic settings but we are starting to receive more attention from larger hospitals in urban locations." Nevertheless, the economy hurts everyone and most third party companies report steady or somewhat slowing sales. "The OEMs need to maintain a competitive advantage in the marketplace and are dropping prices on those brand new CTs installed with a warranty, driving prices on used equipment down even lower," Knight said. "To be competitive, a used piece of equipment must be significantly lower in cost than what that OEM can offer in new equipment. So the OEMs are really bringing a competitive edge into the marketplace making it tighter for third party market groups."

Another challenge for independent is that, with fewer units sold, fewer pre-owned scanners are coming on the market, reducing inventory for re-sellers. "There is a tougher time sourcing. But some of the slack is taken up by people going out of business," explained David Denholtz, CEO, Integrity Medical Systems, Inc., Fort Myers, FL. It seems that imaging center closings are a trend that off-sets the demand for sales. "Centers are consolidating or not replacing equipment. Some customers with three or four centers are going down to two or three centers. When nobody is buying new, there are not as many used scanners, but then again fewer people are buying used scanners, so it evens out." "The market has slowed down somewhat. Many hospitals have frozen their capital budgets for this year and maybe longer depending on what legislation is forthcoming. Access to pre-owned scanners is becoming more of a challenge," noted Bill Adkins, President, National X-Ray Corporation, Palmetto, FL.

Service Dominates as a Priority for OEMs, ISOs
In times when sales are suppressed, service becomes more important as providers keep the installed equipment operational. And service of this sophisticated technology doesn't come cheap. "The lifecycle costs over a piece of equipment like a CT scanner is almost half the price of a scanner.