This report originally appeared in the July 2009 issue of DOTmed Business News

I attended the Society of Nuclear Medicine (SNM) conference last month in Toronto. SNM came on the heels of the Canadian Government announcing the reactor which is a major source of supply for Molibdinum-99 is shutting down for a prolonged period of maintenance. Shortly thereafter, the Canadians announced their plan to privatize the AECL operations. Fear of a shortage of radiopharmaceuticals was a major topic among the attendees.

The need for increased production of radioisotopes for clinical and research use has been discussed for decades. Judging from the age of the reactors and particle accelerators we use to produce radioisotopes, it appears much of what's been done to solve the problem is talk. Talk isn't going to get it done.
The SNM exhibit hall was noticeably short of vendors and breakthrough products. You can blame the usual stuff for the problem, the current economic turndown, the Toronto venue, the cost of attending a trade show. But, I think there's more.

Over the past several years, the major equipment vendors have turned out high cost capital equipment and used up most of the capacity of the market to absorb it. In an attempt to market the new devices they've declared the installed base obsolete. A few years ago, it appeared equipment was becoming obsolete in three years or less, a difficult pill for most to swallow. With the recession, the end users took a fresh look at the situation. The installed equipment looked okay for continued use. That continued use is good for providers, payers and patients.

There's still something larger affecting the marketplace. The Administration and Congress have declared our Health Care System broken and are pushing for a National Health Care Program. This prospect has put a chill on spending by vendors and buyers.

Our Health Care System isn't the only item on the table. There is an assault on Medicare and the FDA. The potential for overhaul looms large for these bureaucracies too. The uncertainty our political process brings to the market is unfortunate.

There's no question - whether vendor, buyer or government agency - our shortsighted approach to raw material supply, new equipment introduction and acquisition and government bureaucracy stewardship have resulted in a harvest of poor results. This will continue if we don't change the way we treat the market. When farmers don't fertilize and rotate their crops the land eventually wears out. Similarly, if we don't feed and care for our Health Care System, we may lose it.

Wayne Webster is a consultant in Medical Imaging Business Development. You can send your comments or questions to W.Webster@Proactics.net.

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