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Green Machines: Recycling Used Medical Equipment

May 13, 2009

"When we bring the equipment in we obviously take a look at it and make sure that there are no surprises," says Campbell. "CT and X-ray will have oil-fill transformers and those will have to be segregated and handled with great care. MRI magnets are typically very heavy -- 6,000 to 30,000 lbs, so those require special equipment for handling."

Each piece of equipment has its own decommissioning and recycling protocol. With MRI, this protocol is split even further depending upon the type of magnet used.

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"There are two different kinds of MRI magnets," explains Campbell. "Cryogenic magnets can be ramped down. You can use the resistance and the power supply to pull some energy out of the magnet and allow the magnet to ramp down. If you have a permanent magnet, you must ship the magnet in a container that protects the environment from the magnetic field."

Most MR machines have a "quench" circuit, which automatically shuts down the magnetic field, says Geske. This is a good thing, because of the cost and labor issues involved in ramping down a magnet. Once a magnet is quenched there is ordinarily no remaining magnetism, although some kinds of steel have been known to retain some of the magnetic property. Proper inspection of the equipment ensures that it is safe to recycle.

MRI magnets themselves are a virtual metal quarry waiting to be mined, but the present economy has depressed commodity prices to such a degree that it is not nearly as profitable to scrap equipment as it was just twelve months ago.

"A year ago we did very well scrapping MRI and CT, but there's not a whole lot of activity going on with salvage right now," says Geske. "We have seven magnets in the warehouse that we'd love to scrap out."

Instead of breaking down a piece of medical equipment into their respective commodities, folks like Geske are obliged to "sit on it" until prices are more palatable.

"For example, six to seven months ago aluminum sold for a little over a dollar a lb. Today's it's down to above 15 cents a lb," he says. "Copper hit an all-time high of $4.15 and now it's down to $1.12."

Campbell continues to recycle equipment and seems to be handling plummeting commodity prices with due patience. If the equipment is delivered to their facility, the elimination of transport cost keeps scrapping profitable. When one market suffers, others may thrive. The resale of medical equipment for veterinarian applications appears to be a robust market. With no insurance reimbursement issues, selling to veterinary practices can be far more attractive than dealing with medical practices that may be hindered by payer agendas.