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Medical Imaging Equipment Service: OEM vs. ISO

  
  
  

imaging equipment service oem vs isoWhoa! Did you just see that title? The big beefy OEMs are calling out the nimble scrapper ISOs. This could be quite the tussle. Ali vs. Liston! Coke vs. Pepsi! Jersey Shore vs. rational humanity! Buckle up for this one.

I work for an ISO, so I’ll need to take a deep breath, hold it, and gradually exhale all that bias. After all, the most trustworthy information sources are those that maintain objectivity, right?

OEMs (original equipment manufacturers) and ISOs (independent service organizations) can both provide service support and repairs for imaging systems, but they are also very different in their approaches.

How about this: I’ll elaborate on some of the pros and cons of service from both and leave the deciding up to you? Deal?

OEM Service Pros

Large engineering staffs- GE, Siemens, and Philips are corporate juggernauts, period; not just in the medical imaging field. As a result of worldwide-mega-global status, they have resource pools so deep even Michael Phelps would need floaties.

New model training- Since the OEMs produce the equipment, they have the only technical stable trained on the very newest models. If you’ve bought the latest and greatest, there is a chance that only the OEM will know how to service it.

Proprietary software access- If you ever end up facing lost software or software corruption only OEM service can provide a replacement or an update, without purchasing new disks, as part of your contract.

OEM Service Cons

Training… to a point- The most common problems and the most common solutions are built into an OEM engineer’s repertoire, but when something unusual comes up, they’re more likely to dip into that deep resource pool and start throwing parts at a system until it works again. This approach gets the job done, but the costs can add up quickly.

Discontinuations- When a new generation of medical imaging equipment is released OEMs often discontinue service on an older model. This designation is called, “end of life” and helps goad hesitant customers into considering their next upgrade. New engineers hiring in will NOT be trained on end of life models. Some OEMs won’t even send an experienced engineer who is familiar with an older system if the service request is for a discontinued model.

Higher contract prices and hourly rates- OEM prices are substantially higher than the prices one can find in the third-party market. For example, Block Imaging service contracts are priced at an average of 20% below what an OEM would charge.

Call center-style service- Most of the time, you’ll be dealing with a new service coordinator each time you call. Sure, that person has the notes from previous calls to give them a basic rundown, but they lack the fuller context and understanding that comes with a consistent working relationship.

ISO Service Pros

Lower pricing- Smaller companies have smaller overhead costs and are driven to price their work competitively against OEM rates.

Engineer Experience- These companies are sometimes founded by or hire ex-OEM employees that understand the quirks of the older systems so many sites are trying to preserve. These groups also hire engineers from a broader variety of backgrounds. The ISO that has an expert on your GE room might also have an expert on your Philips room. Keep in mind that this is expertise gained in the field by finding problems and fixing them without the benefit of that seemingly endless flow of fresh parts.

Working on end of life systems- There are systems out there that seem like they’ve been scanning since the French Revolution. There’s probably not anybody out there that knows how to work on them, and forget finding parts! But, there are ISO solutions for any number of systems that have fallen by the wayside.

Personalized service- A smaller staff means that callers will be far more likely to talk to the same person or two people each time they call. This builds trust, rapport, and a firmer understanding of the condition of the equipment.

ISO Service Cons

Proprietary software access- ISOs will only have access to software that the OEM will sell. If software is needed it can be a pricy addition to your final invoice. ISOs can perform reloads, but only if the software is on hand.

Engineer availability- ISOs generally work to be flexible with their customers’ schedules, but with a smaller staff than an OEM, they can’t always respond with the same speed. 

New model training- ISOs do not get dibs on new model training like OEM engineers do. If your equipment is three years old or newer, you’ll have difficulty finding third-party engineers that are comfortable with it.              

The Imaging Equipment Service Decision

So there they are: the pros and the cons of shopping OEM service vs. ISO service. Does that help you pick your contender in this epic battle? 

Well, if you need a little more, consider this:

If your service goal is savings-related, ISOs are a great choice to save some money if you choose the correct one. Make sure you understand your ISO’s service capabilities before you make your decision.

If your goal is maximum uptime at any cost, you may find yourself more at home with an OEM service contract.

 

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Meet the authors - Jordan Batterbee and Gabe Viscomi

 

 

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Comments

Krista, 
 
Great article!  
 
Being part of the ISO world I obviously support the ISO pro's but can still see both sides of the coin.  
 
The OEM's resource pool is vast and their pockets are deep to allow for "packaging" of equipment and service. The new-model training is a plus but most new models are under warrenty. 
 
Moist of the ISO's can typically save 10%-20% off the OEM's service agreements and offer a more personal experience. HOWEVER, if you're concidering an ISO make sure the company and staff you will be contracting with are reputable and certified. You don't want some "Fly-by-night" company offering "discounted" pricing but doesn't conform to regulatory agency requirements...i.e. Joint Commission, OSHA, NIOSH, ACR, MQSA, NFPA, etc. etc. 
 
BE CAREFUL!!
Posted @ Tuesday, April 24, 2012 8:47 AM by Bob DeFrancesco
Thanks Bob, I’m sure you’ve seen nightmares (as we have) where a service company wasn’t really equipped to meet the needs of the facility. The highest priority of the service company must be to help the facility meet their regulatory responsibilities. Frankly, many of our service customers started with us because they weren’t getting the help they needed from their last service company to meet the standards. Saving money cannot come at the expense of meeting standards of quality. We appreciate the input!
Posted @ Tuesday, April 24, 2012 9:34 AM by Krista Kotrla
FIGHT! Yes you picked a great topic and I have worked for ISO's and OEM's (G.E. Medical Systems). As an ISO working in a contracted imaging department kicking the OEM out of the hospital while improving customer satisfaction and equipment up-time is always my first goal! One of the issues I have run into across this vast country of ours is the OEM whispering into the customers ear that we ISO's do not have the proprietary software and updates for the equipment. I assure my customers that while the software may not be right in our hands it is only a phone call away whenever we feel we need it! That phone call would be to G.E. or other OEM and as in other cases where we were limited in what we could do we always get the job done....leasing the software and a G.E. service engineer by the hour! This approach allows the Administrators and Directors of Radiology to see that although we do not as a company have the rights to proprietary software we can easily obtain it's use by making a phone call. 
 
Another big issue with ISO' vs. OEM's is the lack of training on specific imaging equipment. There are ISO's out their with VERY limited technical abilities attempting to take on systems that are out of their league. These ISO's unfortunately are giving the entire ISO group a bad reputation in the field. There are many ISO's out there that actually provide better service across the board than the OEM's and there are ISO's out there that should stick with accounts that they are technically able to maintain as to not give the others a bad rap. Great article as always! ISO's and Entrepreneur's RULE!
Posted @ Tuesday, April 24, 2012 1:45 PM by Chris Salberg
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