Medical Device Industry Trends
In the medical device market, there are two kinds of service providers for repairs. They are original equipment manufacturers (OEMs) and third-party or independent service organizations (ISOs). The former has long-reigned over medical equipment maintenance and have long-standing relationships with hospitals, etc. However, ISOs are proving to be fierce competition. Let’s take a look at the unique characteristics of each provider and their benefits. Additionally, we will also assess the medical device industry trends we are witnessing.
Major OEMs include GE, Philips, and Siemens to name a few. Their design, engineer, and manufacturing of medical devices is FDA-regulated. With these strict standards in mind, OEMs do have to invest more money into meeting them. Therefore, this costs you more in the long-run to partner with them. This higher price is also reflected in their ability to service the latest technology and market perceptions as a higher-quality provider. On the other hand, ISOs cost less, but are left to their own devices in setting standards for their service. In addition, ISO’ work on equipment across a variety of manufacturers. This makes it cost effective if you have many brands of equipment. ISOs generally have a strong reputation for better service and faster response times compared to OEMs.
Of course, each hospital has its own unique needs and equipment. They have to think about how these needs align with the benefits of each service provider. Whether it’s serviceability, rates, or availability, you should still keep these key statistics in mind. ISOs as a whole have built a reputation for providing quality repairs at 30-50% of a lower cost than OEMs. They account for approximately 30% of outsourced maintenance repair in the medical device market. OEMs make up 70% of repairs. Medical device industry trends show that smaller, cost-conscious consumers are more likely to partner with ISOs for these benefits. On the other hand, larger hospital networks trust OEMs.
Our prediction in analyzing these medical device industry trends is that ISOs will begin to take over more of the medical device market. This is because of the similar quality and breadth of service they provide. ISOs might not be giving OEMs a run for their money just yet, but they are certainly catching up. OEMs may be wondering what do to in the meantime. In order to combat their high costs, they could be partnering with medical equipment repair services like CSAT. In areas where OEMs may not have the resources, CSAT can step in and help meet third-party partnerships. By providing these resources, CSAT can provide a buffer. We can make maintenance agreements and extended warranties cost-effective.
CSAT knows the importance of providing consistent high-quality medical equipment repair. We serve clients tirelessly to ensure their success by going above and beyond in researching medical device industry trends and providing only the best services. Learn more about CSAT and its medical equipment repair services in maintaining patient monitoring, ultrasounds, endoscopes, CT scanners, MRIs, and more.