From the August 2014 issue of HealthCare Business News magazine

Across-the-board reimbursement cuts, the pressure to improve the quality of the patient experience, and a slew of regulations regarding equipment maintenance have providers reeling. Many are turning to the OEMs they do business with to share their pain and be part of the solution. Parts and service costs are definitely among the the expenses hospitals are scrutinizing for potential cost saving.

But working with the equipment manufacturers has been complicated by the fact that they are feeling the pinch too – new equipment sales have been taking a hit for several years now. The OEMs, in response to that, have moved beyond their primary role as purveyors of new equipment and are aggressively expanding their role as service providers, serving not only their own products but that of their competitors by building new service arms or through the acquisition of established service companies.

In the following responses to HCBN’s questions, you’ll see how the OEMs use their unique access to proprietary parts and technology to make their case as the preferred service provider -- you can compare their arguments side-by-side. If you’re looking for a new or extended service contract this is required reading.
No one ever got fired for buying . . .
If you’ve been in the health care field for any length of time, you’ve likely heard the old adage, “No one ever got fired for buying GE. ”While it’s impossible to confirm the veracity of the statement and any number of OEMs could fill in that blank in place of GE, the general sentiment holds true. That is, there’s less risk going with the company that manufactured the machine when making a purchase or entering into a service relationship.

In that, the OEMs have a decided leg-up on ISOs. But they’re backing that name recognition and brand loyalty with increased and expanded service options in order to keep existing customers and bring on new ones.

Bud DeGraff, general manager of diagnostic and clinical services at GE Healthcare probably appreciates the sentiment behind the statement. While he wasn’t asked the question directly, he did point to GE’s reputation as something that he thinks sets the company ahead of the competition. He addressed the company’s insights, experience, data and tools that help hospitals to improve their business, bottom line and the ever-critical patient outcome and experience.

“Clearly, it’s not business as usual,” DeGraff says. “That’s true for GE and the hospitals we serve. In the past, we’ve focused on helping to increase the reliable uptime performance of advanced medical technologies. We’ll continue to provide that support in a costefficient manner. But we know that in today’s environment, our customers need more. They need sustainable improvements in performance that will help them meet business objectives over the long term.”

August 2014 Magazine

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