The types of exams performed with an MR scanner also factor into how much risk a provider can handle, according to Larry Knight, president of Dallas-based ISO Altima Diagnostic Imaging Solutions, because frequent uses for highly complex procedures that require a lot of power may necessitate the need for a full-service contract.

Knight, whose company services Siemens Healthineers MR and CT scanners, including parts repair and replacement, installations and deinstallations, magnet quench support, and site planning, also stresses that even a full-service agreement does not cover every scenario.


“Almost every service contract from anybody is going to preclude or not cover any 'acts of God', like if a storm with lightning propagates a spike through the system and takes out $100,000 worth of parts. But anything that is not an 'act of God' can be covered on a full-service contract, which means there is zero risk to the owner and all the risk is taken on by the service provider.”

The history behind equipment, including its most common failures and approximate replacement costs for parts, can tell providers a lot about their servicing needs.

“Maintaining a log of the service history, PMs, and cryogen consumption will give you an idea of how much coverage you may need," suggests Jim McCay, the northeast territory manager for MR, CT, PET/CT at MXR Imaging, the largest independent distributor of imaging sales and service in the U.S. "By understanding your equipment, you will know what you can and cannot carve out of your agreement to save money and mitigate risk,” he said.

Based in San Diego, MXR sells, services, and provides training on MR equipment, installation services, repair coils, and parts in-house. It also replaces cold head units, refrigeration and helium fills, and repairs and replaces magnetic shielding.

Going the distance
Travel time between a facility and its service company can be the difference between having a scanner up within hours versus days. For this reason, a small hospital in a rural area with low scan volumes may be better off going with a nearby ISO that can offer short response time and next-day delivery of replacement parts for repairs, versus an OEM located over 100 miles away in a major city with a national distribution point for parts.

“The OEM never offers a next-day service contract unless the customer requests it, or the manufacturer knows they have competition,” says McCormack. “Knowing there's a second source alternative to the OEM can help, even if they want to stay with the OEM. This strategy has allowed providers to negotiate next-day service contract pricing and given them a strong negotiating capability with the OEM to lower prices to a more reasonable rate.”

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