Medical Dealer - June 2017

MEDICAL MEDICALEQUIPMENT, EQUIPMENT,PARTS PARTS& &SERVICE SERVICE

JUNE 2017 | WWW.MEDICALDEALER.COM

THROUGH BUDGETING PROCESSES FIND YOUR PREFERRED VENDOR

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p.47 BEDS AND FURNITURE

We always bring the best Asset Management

We wrap all of your biomedical and imaging needs into a proven unique, comprehensive program.

Our program includes regulatory compliance, complete equipment life cycle administration and creative solutions through tailored plans at competitive rates.

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We provide full service maintenance, budget friendly preventive maintenance plans, time and material services and tailored cooperative plans for all of your biomedical equipment needs.

Diagnostic Imaging

We provide comprehensive imaging services, unbiased vendor advice, and creative approaches to providing the best and most cost effective imaging services you may need. InterMed has highly trained engineers in all of the imaging modalities.

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InterMed’s unique rapid deployment teams provide skilled engineers for all of your temporary needs. Whether it is filling in for engineers, special projects, or compliance preparation we have proven experience and we always bring the best.

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We treat your probes like patients.

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THROUGH BUDGETING PROCESSES

“ Surgery centers aren’t out there buying the latest and greatest stuff, It’s a different model of care. They buy what is good for the patient, and safe, but they don’t overspend.

“To be able to stay in business, you have to see changes in the industry coming and change to stay with them.”

At what point is it want versus need?”

48

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CONTENTS_Features 46 COST SAVINGS: THROUGH BUDGETING PROCESSES

In the world of hospital budgeting, value is everything. Capital equipment purchasing decisions are weighed along several key considerations that all ultimately relate to getting the most out of every dollar spent. But as pressures mount to unearth greater efficiencies and new savings from departments that are already stretched thin, institutional leaders are examining any and all opportunities to extract additional money from the process.

52 MEDICAL IMAGING TECHNOLOGIES (M.I.T.)

Medical Imaging Technologies is celebrating its 30th anniversary of serving the health care community in 2017. In its infancy, the company focused on servicing Phillips equipment, but shifted toward GE Healthcare devices as interest grew among hospitals and health care providers. Medical Dealer interviewed M.I.T. Inc. Vice President Sarah Lee to find out more about the company.

Medical Dealer (Vol. 20, Issue #6) June 2017 is published monthly by MD Publishing, 18 Eastbrook Bend, Peachtree City, GA 30269-1530.

POSTMASTER: Send address changes to Medical Dealer at 18 Eastbrook Bend, Peachtree City, GA 30269-1530.

For subscription information visit www.medicaldealer.com. The information and opinions expressed in the articles and advertisements herein are those of the writer and/or advertiser, and not necessarily those of the publisher. Reproduction in whole or in part without written permission is prohibited. © 2017

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MEDICALDEALER 9

INDUSTRY UPDATE MD Publishing 18 Eastbrook Bend Peachtree City, GA 30269 (800) 906-3373 Fax: (770) 632-9090

12 News & Notes 18 Bayer Multi Vendor Service 22 People on the Move 25 OEM Update

Publisher

John M. Krieg john@mdpublishing.com

Vice President

Kristin Leavoy kristin@mdpublishing.com

Editor

John Wallace jwallace@mdpublishing.com

Art Department Jonathan Riley Jessica Laurain Kara Pelley

Account Executives Jayme McKelvey Lisa Gosser

Contributors

Jim Fedele Matthew N. Skoufalos Dan Bobinski

Accounting

Kim Callahan

MARKET ANALYSIS Imaging: X-Ray 31 Market Analysis 32 Product Showroom 37 Preferred Vendors Med/Surg: Furniture 41 Market Analysis 42 Product Showroom 47 Preferred Vendors

SLICE OF LIFE 60 Dan Bobinski 62 The Other Side 66 Off The Clock

Circulation

Lisa Cover Laura Mullen

Web Department Cindy Galindo Kathryn Keur

Proud supporters of

72 Marketplace 76 Categorical Index 78 Alphabetical Index

Shop multiple vendors in a single online marketplace. www.medicaldealer.com

10 MEDICALDEALER | JUNE 2017

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INDUSTRY UPDATE_News and Notes

ACT RECEIVES 510(K) CLEARANCE FORUSE WITH NEW CONTROL UNIT Advanced Cooling Therapy (ACT) has received 510(k) clearance from the U.S. Food and Drug Administration for use of its Esophageal Cooling Device (ECD) with the Altrix Precision Temperature Management System

by Stryker.

ACT’s technology platform provides a novel method to control patient temperature using the esophageal environment. The ECD is designed to modulate and control patient temperature when clinically indicated through a single use, fully enclosed triple lumen system that is inserted into the esophagus. Two lumens attach to existing temperature modulation equipment while a third lumen simultaneously allows gastric decompression and drainage. The ECD can be rapidly inserted by most trained health care professionals, in similar fashion to a standard gastric tube, and can be used to control patient temperature in the operating room, recovery room, emergency room, or ICU. No other products on the market are approved to use the esophageal environment for whole-body temperature modulation.

"The ECD is being adopted across the U.S., and globally, in an increasing number of hospitals to warm or cool patients when clinically indicated, and this clearance for use with the Altrix Precision Temperature Management System will further support that growth,” commented Robin Drassler, Vice President of Sales, North America. “The ECD is easy to use, doesn’t require additional capital purchase, and is compatible with the majority of available control units. We are addressing a significant demand in emergency departments, intensive care units and operating rooms for a wide range of temperature management needs.”

ACT’s ECD received U.S. FDA de novo clearance in June of 2015 for use with the Medi-Therm III by Stryker and received FDA 510(k) clearance in January 2016 for use with the Blanketrol II and III Hyper-Hypothermia systems made

by Cincinnati Sub-Zero, a Gentherm Company. It received its CE Mark in Europe in 2014, with an expanded indication for use up to 120 hours in 2016 and a CE Mark for use with the Altrix System by Stryker in January 2017. It is also licensed for sale in Canada and Australia. • 12 MEDICALDEALER | JUNE 2017

Staff Reports

TEXAS HEALTH RESOURCES AMONG BEST WORKPLACES IN HEALTH CARE Regulatory uncertainty, industry consolidation and changes in technology make working in health care more challenging than ever. Given extra need for effective leadership and supportive workplaces, Great Place to Work and Fortune announce the 2017 Best Workplaces in Health Care.

The top five on the list are: 1. Texas Health Resources 2. Encompass Home Health and Hospice 3. Baptist Health South Florida 4. Miami Children’s Health System 5. Methodist Le Bonheur Healthcare “Employees in health care frequently take on high-stakes responsibilities that substantially impact people’s lives. By doing everything they can to support team members and ensure they create a great place to work for all, the Best Workplaces in Health Care are poised to outperform their peers,” says Kim Peters, executive vice president of Great Place to Work.

At Best Health Care Workplaces, 93 percent of employees describe their organizations as friendly and welcoming.

Hospitals on the list averaged higher “Overall Hospital Rating” and “Recommended Hospital” HCAHPS scores than the national average.

Employees at the “best workplaces” say they are offered professional development, fair pay and an emotionally healthy work environment.

Published with partner, Fortune, the Best Workplaces in Health Care rankings are based on feedback from more than 87,770 employees at Great Place to Work-certified organizations in health care, including the biotechnology and pharmaceutical sector. Employees completed an anonymous Trust Index survey, answering questions about how frequently they experience the building blocks of a great workplace. Employees rated leadership strength and integrity, pride in their work and organization, and the quality of relationships with co-workers, among other factors. •

MEDICAL EQUIPMENT, PARTS & SERVICE

_News and Notes

CONQUEST IMAGING ANNOUNCES LOYALTY REWARDS CLUB PROGRAM Conquest Imaging has launched its Loyalty Rewards Club Program for its hospital and health care facility customers. The program offers the opportunity for customers to qualify for special benefits only available to club members through the program.

“We wanted to find a way to reward our customers who already purchase from us and a reason for other hospitals and imaging facilities to try our parts, probes and probe repair. We know once they experience our quality, turn-around times and customer service, they will be a customer for life,” says Inside Sales Manager Adrianna England.

Once signed up with the program, club members can earn improved benefits through increased purchasing of Conquest’s products and services. Purchasing levels (loyalty tiers) can be achieved quickly through multi-departmental purchasing.

“It doesn’t matter if you are a biomed in the clinical

Because Quality Matters. engineering department or a buyer in the procurement department. Each purchase is counted toward achieving your loyalty tier,” explains England.

Some of the benefits club members will be entitled to include: • Free probe evaluations • Free shipping • Discounts on parts and probes • Extended payment terms to Net 45 • Free ultrasound training Conquest Imaging has been fulfilling hospitals’ ultrasound needs for 17 years, providing each medical facilities with parts, probes, probe repair and loaners with same-day fulfillment. •

BD TO ACQUIRE BARD FOR $24 BILLION BD and C.R. Bard Inc. recently generate high-single digit accreannounced a definitive agreement tion to adjusted earnings per share under which BD will acquire Bard (EPS) in fiscal year 2019. Approxfor $317 per Bard common share in imately $300 million of estimated cash and stock, for a total consider- annual, pre-tax, run-rate cost synation of $24 billion. The agreement ergies are expected by fiscal year has been unanimously approved 2020. Separately, BD also expects by the boards of directors of both to benefit from revenue synergies companies. beginning in fiscal year 2019. The The combination will create transaction is expected to improve a medical technology company BD's gross margins by approxipositioned to improve the process mately 300 basis points in fiscal of care and the treatment of disease year 2018, increase BD's earnings for patients and health care proper share growth trajectory to the viders. The transaction will build mid-teens, and generate strong on BD's position in medication cash flow. management and infection prevenVince Forlenza, BD's chairman tion with an expanded offering of and chief executive officer, said, solutions across the care continu"Combining with Bard will acum. Additionally, Bard's product celerate our ability to offer more portfolio and innovation pipeline comprehensive, clinically relevant will increase BD's opportunities in solutions to customers and pafast-growing clinical areas, and the tients around the globe, creating combination will enhance growth a strong partner for health care opportunities for the combined providers who are increasingcompany in non-U.S. markets. ly focused on delivering better This transaction will be immeoutcomes at a lower total cost. Our diately accretive and is expected to two purpose-driven organizations WWW.MEDICALDEALER.COM

are well aligned strategically, sharing a strong track record of performance and a deep commitment to addressing unmet needs in today's challenging health care environment. We expect the transaction to contribute meaningfully to BD's plans for revenue growth and margin expansion, and generate outstanding value both near- and long-term for shareholders. I am excited to welcome Bard's talented employees to our strong and dedicated team as we bring together two companies with such complementary capabilities, values and strong reputations for delivering superior results."

The transaction is subject to regulatory and Bard shareholder approvals and customary closing conditions, and is expected to close in the fall of 2017. • MEDICALDEALER 13

INDUSTRY UPDATE_News and Notes

Staff Reports

CIS EXPANDS CARDIAC ULTRASOUND CAPABILITIES WITH TOSHIBA MEDICAL SYSTEMS To bolster its technology and treatment capabilities for coronary and peripheral artery diseases across all of its locations, Cardiovascular Institute of the South (CIS) installed 20 new Aplio 300 Platinum CV ultrasound systems from Toshiba Medical. To further expand its ultrasound technology, CIS also upgraded 20 existing ultrasounds to Toshiba Medical’s Aplio 300 Platinum platform to ensure staff were offering consistent and more confident cardiac diagnoses to all patients.

“Purchasing ultrasound systems that are extremely easy to use and installing them across all of our facilities to make exams consistent was very important to us,” said Jaime Aubin, ultrasound team leader, Cardiovascular Institute of the South. “The Aplio 300 Platinum and Aplio 300 Platinum CV ultrasounds offer the best image quality and the cardiac applications we need to make it easier for sonographers of all levels of experience to easily capture images with little to no pressure to the body, improving patient comfort. Toshiba Medical has also been an excellent partner in training all of our staff, as well as helping us create custom reports that fully integrate with our EMR platform.”

The Aplio 300 Platinum CV offers a comprehensive suite of dedicated cardiac technologies, featuring 2D Wall Motion Tracking, spectral and color Doppler, and Toshiba Medical’s latest suite of guidance and workflow technologies. Delivering detail and resolution throughout the entire field-of-view, the system provides excellent definition of the endocardium, which results in an accurate and easy-to-use 2D strain resolution. Furthermore, Toshiba Medical’s Wall Motion Tracking technology allows providers to quantify isolated movement within the heart to assist with detection of cardiotoxicity.

The Aplio 300 Platinum features a high-resolution 19-inch monitor and an optional fourth transducer port. The Aplio 300 Platinum also includes advanced imaging features, such as Advanced Dynamic Flow (ADF), Differential Tissue Harmonics (D-THI), Precision Imaging and ApliPure+. In addition, BEAM needle visualization allows for better procedural accuracy leading to a better overall customer experience. • 14 MEDICALDEALER | JUNE 2017

MEDICAL EQUIPMENT, PARTS & SERVICE

_News and Notes

DIVERSEY CARE ACQUIRES DAYLIGHT MEDICAL UVC DISINFECTION PORTFOLIO Sealed Air’s Diversey Care division has acquired the vices, will allow all facilities concerned with preventing UVC disinfection portfolio of Cleveland-based Daylight infection, from hospitals to schools to airports, to add an Medical. The portfolio acquired includes UVC disinfecadditional level of assurance to their existing protocols.” tant technologies designed to disinfect rooms, surfaces, Included in the acquisition are the MoonBeam3 UVC non-critical equipment and devices. Daylight’s solutions Disinfection System, and the SKY 6Xi and 7Xi devices. are noted for their highly innovative, portable and affordThe MoonBeam3 is a lightweight, portable device deable design, allowing safe and targeted dosing of UVC signed for area, room and non-critical equipment disinlight to quickly and effectively kill harmful pathogens, fection. The device has three articulating arms designed including bacteria and C. difficile. to optimize the UVC dose delivered to surfaces.

“When combined with consistent and proper manual The Sky 6Xi and 7Xi are designed for tablet and phone cleaning and disinfection, UVC disinfection technology disinfection, an important source of risk which needs has the power to reduce the spread of pathogens that can to be addressed as usage of these devices increases for cause dangerous infections,” said Dr. IlhamNEEDED Kadri, presistaff, visitors and patients. These compact devices can be PROOF APPROVED CHANGES dent, Diversey Care. “Daylight’s innovations are a synerplaced around the facility, making it easy and convenient gistic fit with our existing infection prevention platform, to effectively remove pathogens from mobile devices. • CLIENT SIGN–OFF: which includes key innovations such as Accelerated Hydrogen Peroxide (AHP)-based Adjunct ARE For more information, visit www.daylightmedical.com or PLEASE CONFIRM THATdisinfectants.

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MEDICALDEALER 15

INDUSTRY UPDATE_News and Notes

STRYKER EXPANDS WASTE MANAGEMENT OFFERINGS Stryker has announced the acquisition of substantially all of the assets of Cactus LLC, the manufacturer of the Smart Sink, Pharma Lock and Pharma Lock O.R. Controlled Substance Waste Management Systems. This acquisition was sought to provide Stryker’s customers with proven products that facilitate drug diversion prevention and meet the pharmaceutical waste disposal standards.

“Stryker’s Instruments division’s newly formed Surgical Safety business is dedicated to providing our customers with the highest quality devices for proper controlled substance waste management and disposal,” said Nate Miersma, Marketing Director. “This acquisition will allow us to help our customers improve their anti-drug diversion efforts, vides Stryker with an opportunity to promote environmentally sustainable improve pharmaceutical waste disposdisposal practices and ensure their al practices for a safer environment. facilities are regulatory compliant.”

The Smart Sink, Pharma Lock and Without proper and compliant Pharma Lock O.R. Systems have been waste management programs, pharin the U.S. market under the Cactus maceutical disposal could mean simply name since 2012 and are currently flushing or dumping medications, installed in more than 1,300 facilities. which could lead to federal and/or The products, which meet or exceed state penalties. This acquisition profederal waste disposal and tracking

Staff Reports

standards, will launch as an expansion of Stryker’s Surgical Safety portfolio, effective immediately.

“In addition to the regulatory requirements governing pharmaceutical waste disposal, the proper disposal of pharmaceutical waste is something that is vital to a sustainable and healthy environment, which is important for everyone,” said Miersma. •

TRANSTATE ANNOUNCES PARTNERSHIP WITH JORDAN HEALTH PRODUCTS Transtate is the latest addition to the growing Jordan companies, providing incremental resources, networking Health Products group of health care companies. and cross-selling opportunities. JHP is focused on a strate“We couldn’t be happier about the partnership with gic expansion into the rapidly growing, highly fragmented Jordan Health Products,” said Dan Wheeler, President of global equipment market. Transtate joins Global Medical Transtate. “Partnering with JHP allows Transtate to beImaging LLC, DRE Medical Group Inc., Integrated Rental come part of an integrated team, offering a broader range Services Inc., Oncology Services International Inc. and of industry-best solutions without sacrificing the quality Pacific Medical Group Inc. as part of the JHP portfolio. our customers have come to expect.”

JHP expects additional acquisitions to further augment “We’ve been hearing from our customers that they service expansion and growth across these platforms. would like to see Transtate expand the quality services we Founded in 1998 by Wheeler, Transtate Equipment already provide and develop new offerings,” Wheeler said. Company services and sells medical imaging systems “JHP provides the needed capital and market presence across the United States, specializing in catheter angiograand is the ideal partner to back us in achieving these cusphy equipment. Transtate has grown to become a leading tomer objectives.” independent service organization in the cath/angio space JHP’s health care equipment and service business is by providing quality refurbished replacement parts and focused on the complete lifecycle of medical, surgical, disystems along with expertise in technical support and onagnostic imaging and oncology equipment, including sales, site services. • install, service, repair, sourcing and refurbishing.

Transtate will be part of the JHP group of health care For more information, visit www.transtateonline.com.

16 MEDICALDEALER | JUNE 2017

MEDICAL EQUIPMENT, PARTS & SERVICE

__News and Notes

SIEMENS HEALTHINEERS TO ACQUIRE MEDICALIS Siemens Healthineers has signed an agreement to acquire Medicalis Corporation. Siemens Healthineers plans to expand its population health management portfolio with the acquisition of Medicalis.

Medicalis is a leading provider of clinical decision support solutions at the point of order entry, imaging workflow management, and referral management. By incorporating these offerings into its PHM portfolio, Siemens Healthineers will enable health care providers to effectively bridge between PHM at the health system level and at the departmental level.

With an expanded focus on PHM, as well as a new name that underlines the company’s pioneering spirit and engineering expertise, Siemens Healthineers – the separately managed healthcare business of Siemens AG – is helping health care providers worldwide meet current challenges and excel in their respective environments.

"The mission of Siemens Healthineers is to be the trusted partner enabling health systems and health care providers worldwide to improve medical outcomes and reduce costs," says Matthias Platsch, Head of Services, Siemens Healthineers. "The addition of Medicalis’ technology solutions to the Siemens Healthineers portfolio complements and supports our offerings in population health management and value-based health care, a key priority for our ongoing expansion through our Services business."

The newly acquired population health management portfolio will extend the Siemens Healthineers strategy for value-based health care across the health system enterprise and hospital departmental levels: "The acquisition of Medicalis will allow us to offer health care providers a powerful solution to define, implement, monitor, and evolve their own standard of care for their diagnostic service line," says Robert Taylor, Head of Digital Services Population Health Management, Digital Health Services, Siemens Healthineers. “We are excited to support our customers with these innovative tools to remove the variability from key high-impact disease states, to create standardized diagnostic pathways which enhance outcomes, control costs, and when combined with intelligent referral management, improve the patient experience overall."

The solutions developed by Medicalis allow networks of hospitals (Health Systems/Integrated Delivery Networks) to improve physician productivity, manage patient referrals, and scheduling to enhance the relationship with the patient and ensure clinically appropriate imaging and tests to reduce inappropriate utilization. Currently, seven of the top 25 Health Systems from Massachusetts to California use solutions developed by Medicalis to increase the quality of care they offer to patients.

The agreement to acquire the company by Siemens Healthineers was signed in April 2017. Terms of the transaction are not disclosed. The closing of the acquisition is subject to customary closing conditions. •

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INDUSTRY UPDATE_Company Showcase

Special Advertising Section

BAYER

Multi Vendor Service

F

or more than 20 years, Bayer Multi Vendor Service (MVS) has been a trusted third-party medical imaging service provider.

The company began designing and manufacturing Medrad® and OEM MRI coils in 1986. In the early 1990s, a local customer approached Bayer MVS and asked the team to repair a non-Medrad branded MRI coil. Utilizing the Medrad coil service capabilities, the team was able to successfully repair the customer’s coil and the company has not looked back.

The Multi Vendor Service division was officially established in 1996 and opened a European office in 2007. It expanded its multi vendor capabilities into ultrasound transducer repair in 2001 and CR system and dry film printer service in 2007. Recently, MVS has begun to add radiology products to its portfolio. The Bayer MVS digital radiography upgrade solution was added in 2014, and in 2015 the MVS group took over the management of the Medrad eCoil product line.

We also built and maintain a strong strategic alliance with Wetsco Inc., who has managed repairs for standard and 3D/4D transducers, for more than eight years.

“Our success is attributed to living our brand promise: delivering exceptional value through our capabilities, quality and customer care,” Bayer 18 MEDICALDEALER | JUNE 2017

Bill Kollitz Bayer Multi Vendor Service General Manager

Multi Vendor Service General Manager Bill Kollitz explains.

Medical Dealer spent some time finding out more about Bayer MVS.

Q:

What are some advantages that your company has over the competition?

Kollitz: Our primary goal as an organization is to provide value for our customers by helping them repair more and replace less. Leveraging our experience as a coil manufacturer, we have an understanding of the science behind the products we work on. Our engineers are able to apply their knowledge, skills and talents to continuously develop new repair procedures for other OEM imaging products. Today, MVS has established repair procedures for over 600 different MRI coil makes, models, config-

urations and field strengths. We also have repair or replacement solutions for over 1,100 different ultrasound transducers and 50 CR systems/film printers. Our extensive repair capabilities and loaner offerings allow us to help our customers maximize uptime, at an affordable cost.

MVS is proud to be among the few third-party service organizations voluntarily subscribing to the ISO 13485:2003 quality standards, which are mandatory for medical device manufacturers but optional for service providers. This means our customers are receiving repaired products that follow the same quality standards as the original manufacturer.

The people who make up the MVS team are a key part of our success.

If I could use one word to describe the nearly 200 people supporting our business, I would use passionate.

With an average tenure of over 10 years, our team does everything they can to meet our customer’s needs.

The passion behind our work helps our customers bring high-quality repairs back to their sites.

Q:

Can you share some of the unique ways your company creates value for customers?

Kollitz: Minimizing downtime is one of the key ways that we provide value to our customers. Our field service engineers (FSE) will contact customers within 30 minutes of placing a service call on a CR system MEDICAL EQUIPMENT, PARTS & SERVICE

_Company Showcase

or film printers. In a situation where they are not able to troubleshoot over the phone, an FSE can be onsite within eight business hours to address the issue in person. For our transducer and coil customers, we can keep them up and running by providing a loaner to their site next day. In many cases, we are able to offer expedited repair when a loaner is not available. MVS also offers educational sessions that instruct customers how to identify common failure points and the dos and don’ts of recommended use, storage, transport and sanitation of these frequently used devices. Attendees will learn a number of different ways they can extend the time between repairs which may reduce overall repair costs and maximize equipment uptime.

Q:

What are you most excited about right now?

Kollitz: We are excited about the addition of 10 transducer models to our TotalREPAIR guaranteed repair solution list, including 6T/6Tc family of transducers. Our TotalREPAIR guaranteed repair solution is now available on 140 different probe models!

WWW.MEDICALDEALER.COM

Q:

What is on the horizon for your company?

Kollitz: Our research and development teams are working hard to continue expanding our capabilities. Last year, we developed repair procedures for 38 new MRI coils.

We are off to a great start this year and are on track to develop more new repair capabilities than we did last year. In the ultrasound category, special emphasis has been placed on Sonosite, GE Voluson E9, Philips X series and Samsung transducer models. Building off of the success we’ve had with the Philips X7-2t, we have been able to jump start the development of advanced capabilities for other 3D/4D TEE transducers, specifically the GE 6VT-D!

Q:

What is most important to you about the way you do business?

Kollitz: We stand behind our brand promise to deliver exceptional value through our capabilities, quality and customer care. Capabilities are the lifeblood of this business and

drive value by allowing customers to repair more and replace less.

Voluntarily subscribing to the ISO 13485 standards demonstrates our commitment to providing quality repairs for our customers. Topnotch customer care is an MVS hallmark; our team has the loaners you need and pays attention to the little things we can do to get our customers back up and running quickly and easily.

We understand the complexities of the products we work on, down to each individual component that makes them up. Throughout our history, we have successfully leveraged this skillset to expand into multi vendor repairs in other modalities. Our business is nimble and our employees have passion for serving our customers.

For more information about Bayer Multi Vendor Service, visit www.mvs.bayer.com or call us at 1-844-MVS-5100.

Bayer, the Bayer Cross, and Medrad® are trademarks of the Bayer group of companies. All other trademarks are properties of their respective owners and are used herein solely to inform as to the scope of services offered by Bayer.

MEDICALDEALER 19

INDUSTRY UPDATE_GE Lawsuit Update

By Matt Skoufalos

ISOs WIN $131M ANTITRUST DECISION AGAINST GE IN TEXAS COURT I

n a landmark decision for the medical equipment industry, an Eastern District Texas jury ruled unanimously in favor of 17 independent service organizations (ISOs) that sued device manufacturer GE for engaging in anti-competitive business practices.

The case, Red Lion Medical Safety, Inc. et al, versus General Electric Company et al, resulted in a $43.8 million award that was tripled to $131.4 million under federal antitrust statutes. After a seven-day trial before Judge Robert W. Schroeder III, the eight-member jury took two-and-a-half hours to come to a consensus verdict on more than 100 questions related to the case.

At the root of the issue is GE’s 2011 parts sourcing agreement with Alpha Source, Inc. of Milwaukee, Wisconsin. The deal named Alpha Source the exclusive supplier of replacement parts for GE anesthesia machines to “non-device-owning (NDO)” clients. Alpha Source was permitted to buy those parts from GE at a 1-percent list price discount, but then marked up prices to 25 percent above list when selling 20 MEDICALDEALER | JUNE 2017

Sam Baxter Attorney of the firm McKool Smith

to competing ISOs. Alpha Source didn’t offer after-hours and weekend shipments as a mechanism to delay ISO access to those replacement parts, and the trial revealed that GE also delayed its shipments to Alpha Source in order to subsequently stall shipments to ISO clients.

GE also came under fire for establishing internal policies that excluded ISO technicians from accessing GE service training and

software, thereby preventing them from learning how to maintain newer equipment. GE equipment service manuals mandate that GE factory-trained technicians alone are permitted to maintain GE equipment without voiding the warranty.

“GE had figured out how to finally put these people out of business,” said attorney Sam Baxter of the firm McKool Smith of Marshall, Texas, which represented the plaintiffs.

“In order to come to a training class, an ISO had to get an endorsement letter from a hospital that said they’d only work at their hospital and nowhere else,” Baxter said. “Our guys couldn’t sign it, and the hospitals wouldn’t sign it.”

Baxter said that by cutting off training to service schools, ISOs would have been out of business within five years, as the equipment in question aged out of its OEM-supported life cycles. He said the verdict affirms the value of antitrust legislation and the general belief of jurors in the necessity of free-market competition.

“The little guy still has a place in the [medical equipment service] industry, primarily because they are so much better and so much MEDICAL EQUIPMENT, PARTS & SERVICE

_GE Lawsuit Update

cheaper than the big guys are,” Baxter said. “I think it’s highly significant that this jury said that the big corporations can’t drive the little guys out, driving up the costs for hospitals.”

Holly Roloff, Communications Leader of Global Services for GE Healthcare, said in a statement that the company would appeal the verdict, which also mandated that GE pay attorney and trial fees for the plaintiffs.

“GE values appropriate market access to our life-saving technologies,” Roloff said. “Although we are disappointed by the verdict, we stand by our values and plan to appeal the decision.”

In addition to Red Lion Medical Safety, Inc., the 17 plaintiffs in the suit included refurbishers Universal Medical Services, Inc.; Metropolitan Medical Services of NC, Inc.; Biomedical Concepts; Anesthesia Services, Inc.; Diversified Anesthesia; Paragon Service; Bay State Anesthesia, Inc.; POPN, Inc.; Gasmedix, LLC; West Coast Anesthesia Specialists, Inc.; Gulfstream Anesthesia Service Inc. (Doctor’s Depot); Palo Verde Biomedical Consultants, LLC; Medical Application Repair and Sales, LLC; Heartland Medical Sales & Services, LLC; SAS Acquisitions, Inc.; and Trinity Biomedical Solutions, Inc. WWW.MEDICALDEALER.COM

MEDICALDEALER 21

INDUSTRY UPDATE_People on the Move

Staff Reports

PEOPLE ON THE MOVE

The Latest Personnel Moves in the Medical Equipment Field Rochester, New York-based Getinge announced that CFO Reinhard Mayer will part ways with the company in November 2017 for family reasons. Mayer, who has spent nearly 20 years with Getinge, had assumed the post in September 2016, having been promoted from president of the Getinge Supply Chain business. He was also CFO of its Medical Systems business from 2002-15.

Toshiba Medical of Tustin, California has named Dan Skyba director of its Ultrasound Business Unit. Skyba joined the company from SuperSonic Imagine, where he had been director of product management and global director of product marketing and education; he also held various positions at Philips in ultrasound software launching and development.

USGI Medical of San Clemente, California has appointed Carlos Babini as president and CEO. Babini joins the company from CONMED, where he was vice president of AirSeal system commercialization, and had been chief commercialization officer at SurgiQuest Inc. prior to its acquisition by CONMED. He was also president of international business for Curon Inc., chief sales and marketing officer of the medical segment of Vision Sciences Inc., and held various senior management positions at United States Surgical Corporation.

HCA Gulf Coast Division of Houston, Texas has named Barrett K. Blackmon its regional vice president of oncology services. Blackmon joins the company from the MD Anderson Cancer Center, where he was chief administrator for surgical oncology. He is a fellow in the American College of Healthcare Executives.

22 MEDICALDEALER | JUNE 2017

IRRAS of La Jolla, California named C. Lance Boling to its executive management team as vice president of product development. Boling, a 25-year medical device development executive, joins IRRAS from Abbott Laboratories, where he was director of nanotechnology development; his career also has included stops at Nanostim, Nevro Corp., NeuroPace Inc., and Autonomic Technology. Boling holds more than 40 medical device pioneering patents.

Berkshire Sterile Manufacturing Inc., of Lee, Massachusetts has elevated senior quality control director P. Devin Wigington to vice president of quality control. Wigington will be responsible for the company’s analytical and microbiological business. He joined Berkshire from VaxInnate, where he was director of quality control and analytical methods development, and has worked in quality management for ImClone Systems, Enzon Pharmaceuticals, and Chesapeake Biological Laboratories.

Kingwood Medical Center of Kingwood, Texas, has named Mujtaba Ali-Khan its chief medical officer. Ali-Khan joined KMB last year as head of clinical and quality services at HCA-affiliated hospitals Kingwood Medical Center and Conroe Regional Medical Center, and transitioned into the KMC chief medical officer role full-time while CRMC searches for its own chief medical officer.

DaVita Inc. of Denver, Colorado has named Robert Lang president of its international business. Lang was most recently in charge of the international markets business for health insurance provider Bupa, and has worked in the banking and insurance industries with UBS and HSBC.

Precision Image Analysis of Kirkland, Washington has named Christian Teague its vice president strategic relationships.

Teague is a 20-year radiology professional who has worked in research positions at UCLA Medical Center, and who co-founded RadCore Labs in 2009.

The Texas Medical Center of Houston, Texas promoted EVP and Chief Strategy and Operating Officer William F. McKeon to president, CEO, and a member of its board of directors. McKeon has worked in leadership positions at DuPont, Stanford University Medical Center, US Oncology and Medtronic.

General Counsel and EVP of Planning and Development Shawn W. Cloonan has been named TMC’s COO. Cloonan had been a public finance lawyer for Vinson & Elkins LLP and Bracewell LLP.

Varian Medical Systems of Palo Alto, California, named Gary E. Bischoping Jr. its CFO, replacing the retiring Elisha W. Finney. Finny spent 29 years with the company, 18 as its first CFO. Bischoping, who was previously CFO of Client Solutions at Dell Technologies, was to join the company on May 8, 2017. His career has included management roles in financial planning and analysis, risk management, and commercial financing at Dell, and financial management consulting for Stern Stewart & Company, Xerox and the SK Group.

Terumo Cardiovascular Group of Elkton, Maryland named Robert DeRyke its president-CEO following the retirement of long-time President-CEO Mark Sutter.

DeRyke was promoted from the president of its electromechanical systems division, having joined Terumo in 2012 as vice president of corporate quality, and has more than 25 years of experience with Baxter Healthcare, Hospira, and Thermo-Fisher Scientific.

MEDICAL EQUIPMENT, PARTS & SERVICE

_People On The Move

Acelity L.P. Inc. of San Antonio, Texas has added R. Andrew Eckert as its president and CEO. He succeeds Joseph Woody, who is leaving the company after the divestiture of its LifeCell division.

Eckert is the former CEO of TriZetto Corp., which was acquired by Cognizant Technology Solutions in 2014. In addition to TriZetto, Eckert has led CRC Health Group, Eclipsys Corp., ADAC Laboratories, and Valence Healthcare. He chairs the Varian Medical Systems board of directors, and is also a director with Becton, Dickinson and Company.

MedPlast Inc. of West Berlin, New Jersey has made Brian D. King its CEO and a member of its board of directors, effective May 1, 2017. King will succeed CEO Harold Faig, who will remain on the company’s board. King has more than a quarter-century of experience with companies like Covidien, the DePuy Synthes business of Johnson & Johnson, and McKinsey & Co.

Steve Brown, CFO of the Monrovia, California-based STAAR Surgical Company resigned his position April 28, 2017.

STAAR Chief Accounting Officer Deborah Andrews, the company’s former CFO, will fill the position in the interim. In a statement, Brown said his decision was “one of lifestyle and commitment to family.”

Kaiser Permanente Northern California has promoted senior executive CJ Bhalla to SVP and CFO. Bhalla joined Kaiser Permanente in 2006, and was eventually promoted to CFO of its national information technology unit and vice president of national financial performance and planning. Bhalla’s career includes a senior vice presidency at Charles Schwab & Co. and senior management positions at Household International Inc.

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Change Healthcare, the Nashville, Tennessee-based joint venture of McKesson Corp. and Change Healthcare Holdings Inc., has announced its executive team. CEO Neil de Crescenzo heads the organization, which also includes EVP and CFO Randy Giles, EVP and President of Software and Analytics Rod O’Reilly, EVP and President of Imaging, Workflow, and Care Solutions Erkan Akyuz; EVP and President of Network Solutions Kris Joshi; EVP and President of Technology-Enabled Services, Pat Leonard; EVP of Sales and Operations Mark Vachon; EVP and General Counsel Loretta Cecil; EVP of Research and Development and CIO Alex Choy; EVP and Chief People Officer Linda Whitley-Taylor; EVP and Chief Marketing Officer W. Thomas McEnery; and SVP and Chief Strategy Officer Megan Callahan.

InterMed of Alachua, Florida has added Brian Poplin, President-CEO of Elior North America, to its board of directors. Poplin has also been president and CEO of both the former TrustHouse Services Group and of Medical Staffing Network. He is a USAF veteran and certified biomed who also holds a master’s of science in business management and a doctorate in health administration and policy from the Medical University of South Carolina.

After an executive search, Dynatronics of Cottonwood Heights, Utah has named Cynthia L. McHenry its vice president of operations. McHenry joins the company from St. Jude Medical (Abbott), where she spent 20 years, most recently as senior director of global operations integration and site optimization. McHenry will serve on Dynatronics executive management team, participating in acquisitions planning and integration of acquisitions. She succeeds Doug Sampson, who has been appointed vice president of research, development and quality systems.

Providence Medical Technology of Walnut Creek, California, has named Scott Lynch head of global marketing and Michael Scott head of international leadership. Lynch has 22 years of medical device and 15 years of spine industry marketing experience having previously served as vice president of global marketing at DFINE, VertiFlex, and Zimmer Spine. Scott has 16 years of experience including as vice president of OUS Sports Medicine and of Asia Pacific Commercial Operations at ArthroCare, and at Smith & Nephew, where he was U.S. vice president of ENT sales.

Impax Laboratories of Hayward, California has named Paul M. Bisaro its president and CEO, and has added him to its board of directors. Bisaro succeeds interim President-CEO J. Kevin Buchi, and brings with him 25 years of generic and branded pharmaceutical experience.

Bisaro has been executive chairman of Allergan, president-CEO and chairman of the board of Actavis (formerly Watson Pharmaceuticals, Inc.), and president-COO and director of Barr Pharmaceuticals, Inc. Bisaro will retain his seats on the boards of directors of Allergan, of Zoetis Inc. and on the board of visitors of the Catholic University of America’s Columbus School of Law, but will not stand for re-election as a director at Zimmer Biomet Holdings Inc.

Find weekly installments of People on the Move at MedicalDealer.com/magazine.

MEDICALDEALER 23

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MEDICAL EQUIPMENT, PARTS & SERVICE

INDUSTRY UPDATE_OEM Update

NEW 3.0T MRI, SIGNA PREMIER, IS NOW 510(K) PENDING AT FDA GE Healthcare showcased the SIGNA Premier wide bore 3.0T magnetic resonance imaging (MRI) system at the 25th International Society of Magnetic Resonance Imaging (ISMRM) Annual Meeting. It is 510(k) pending at U.S. FDA. It is not available for sale in the United States and may not be commercially available in other regions.

SIGNA Premier is the result of a four-year collaboration with the NFL and research institutions around the world working to design new imaging tools. SIGNA Premier delivers a new level of performance with research-focused clinical capabilities designed particularly for neurological and oncology research and clinical work.

“The image quality we have seen to date from the SIGNA Premier is excellent and very consistent,” says Scott Reeder, M.D., Ph.D., vice chair of research and chief of MRI at University of Wisconsin-Madison.

The University of Wisconfort for patients at our hospital. sin-Madison, is testing a research We have also been able to improve system of SIGNA Premier and has the spatial resolution with very scanned approximately 100 subsimilar SNR performance as other jects to date. ultra-high-performance systems.”

“The high-fidelity gradients and This system is built on a platform RF systems of a scanner are key with: a short-bore, high-homogeneto obtaining high-quality, repeatity magnet; powerful new gradients; able, and reproducible quantitative a new digital RF transmit and receive measurements; this is increasingly architecture; and cutting-edge apimportant as we move from qualitaplications, including cloud analytics. tive to quantitative imaging. SIGNA SIGNA Premier is powered by the Premier combines the advantaginnovative SuperG gradient technoles of a wide bore system with an ogy to improve diagnostic confidence ultra-high-performance system and for clinicians. The SuperG gradient in some instances, is outperforming coil introduces outstanding perforother ultra-high-performance sysmance and superb stability, which tems with smaller bore sizes, particis designed to deliver the perforularly for diffusion-weighted applimance of ultra-high-performance, cations. I believe the wide bore is research-class 60 centimeter MRI going to improve access and comsystem in a 70 centimeter bore MRI. WWW.MEDICALDEALER.COM

Staff Reports

The RF technology of SIGNA Premier is designed to provide greater clinical performance and higher overall image quality especially for data-intensive applications, based on GE’s Total Digital Imaging (TDI) architecture. A total of 146 independent channels allow the simultaneous combination of multiple ultra-high channel count surface coils for faster accelerations and uncompromised image clarity.

The TDI 48-channel Head Coil delivers clinical performance for virtually every patient. A fitadaptable design addresses 99.99 percent of the population – including extremely large heads and short necks – while preserving high signal-to-noise ratio (SNR) and outstanding and sustainable image quality. • MEDICALDEALER 25

INDUSTRY UPDATE_OEM Update

PHYSIO-CONTROL LAUNCHES NEW AED Physio-Control has announced that the company’s HeartSine samaritan PAD 360P (SAM 360P) fully automatic external defibrillator (AED) is now available for sale in the United States, having received U.S. Food and Drug Administration (FDA) Premarket Approval (PMA).

HeartSine, acquired by Physio-Control in 2015, is the first to receive approval for a new AED product under the FDA PMA regulatory process, which is the most stringent for medical devices in the United States and is a new FDA regulatory requirement for the AED industry.

The SAM 360P will complement the SAM 350P and SAM 450P, which also have FDA PMA and are offered in the United States, by providing users with a choice of a fully automatic device, a semi-automatic device, and a device with integrated real-time cardiopulmonary resuscitation (CPR) rate feedback.

The Physio-Control HeartSine samaritan PAD 360P analyzes the cardiac rhythm and automatically delivers an electrical shock to a victim of sudden cardiac arrest in order to restore the heart to normal rhythm. This user-friendly AED provides easy-to-follow visual and audio prompts, including CPR coaching which verbally guides the rescuer through the CPR process. Shock delivery, if required, is fully automatic which means there is no shock button to press.

With a durability rating of IP56, Physio-Control HeartSine AEDs provide the highest level of dust and water ingress protection in the industry, making the device well suited to a variety of usage locations – including places where exposure to the elements presents a challenge.

All Physio-Control HeartSine AED models use the company’s interchangeable Pad-Pak cartridge, which has also received PMA approval. With a single expira26 MEDICALDEALER | JUNE 2017

Staff Reports

tion date for both battery and electrodes, the expense of tracking and maintaining accessories with different expiration dates is eliminated. In addition, the Pad-Pak features a rapid replacement mechanism that enables the battery and pads to be replaced easily in seconds.

Along with the SAM 360P, Physio-Control will offer a new HeartSine samaritan PAD Trainer that simplifies CPR and AED training. The new samaritan PAD 360P Trainer guides users through simulated analyses, simulated energy delivery and prompted CPR intervals with a training device which looks like a SAM 360P, is cost effective, and does not deliver defibrillation shocks. • MEDICAL EQUIPMENT, PARTS & SERVICE

_OEM Update

FDA CLEARS SOMATOM GO. CT PLATFORM FROM SIEMENS HEALTHINEERS The Food and Drug Administrawide-ranging proficiency to generate Healthineers Connect Plan – focuses on tion has cleared the SOMATOM go. consistent, high-quality studies. The remote diagnostic and service capabilicomputed tomography (CT) platform standardization also provides radiolties, online training, and novel concepts from Siemens Healthineers – an enogists with greater assurance regardfor extended spare parts coverage. tirely new CT platform designed for ing diagnostic image quality, helping This solution optimizes financial perhighly diverse sets of user needs. them avoid errors and repeat scans, formance and enables highly reliable Created with extensive customer and thus unnecessary wait times. operation. For example, the new Chrofeedback, the new platform includes The new usage concept at the non® X-ray tube is designed for a long the SOMATOM go.Now and SOMAheart of the SOMATOM go. scanners lifespan to relieve customers’ financial TOM go.Up CT scanners, which offer offers other advantages. Since workburden. Innovative remote service also automated, standardized workflows flow can be controlled via tablet, staff significantly reduces downtime, and that help users achieve more conmust no longer move between the customers can install many upgrades sistent, profound clinical results at a scanner and control room. Technoloremotely at their discretion without lower total cost of ownership. gists can remain with patients during disrupting scanner operation.

The tablet-based workflow conscan preparation, which can make the The clinically relevant features of cept facilitates more comprehensive experience more pleasant, particular- the SOMATOM go. platform are parpatient care and allows radiology ly for children. ticularly important for many routine providers to use a cost-efficient single-room concept for the first time.

With products and solutions such as the SOMATOM go. CT platform, as well as a new name that underlines the company’s pioneering spirit and engineering expertise, Siemens Healthineers is helping health care providers worldwide meet challenges.

The 32-slice SOMATOM go.Now CT scanner is particularly suited to radiology providers who want to leverage a low-cost but clinically robust CT solution. With a wide detector that provides up to 64 slices, the SOMATOM go.Up offers faster scanning and tin filtration, which is particularly important for lung imaging (e.g., to screen for lung cancer). It also uses some of the lowest Since all computer hardware forapplications – and in this case, allow radiation doses achievable for a CT merly located in the control room is users to expand their portfolio. A of this class. For this reason, the SOnow integrated into the gantry, SOMAnew Stellar detector with integrated MATOM go.Up is ideally suited for TOM go. scanners can be controlled on electronics, coupled with spectral organizations that want to expand the move, enabling a flexible room con- tin filters previously available only their portfolio. cept. Rather than require two or three on the company’s most advanced Users of the SOMATOM go. platrooms for the scanner, the control unit, single- and dual-source CT scanform can control routine examinaand possibly additional technology, SO- ners, are included as standard. For tions using only the tablet and remote, MATOM go. systems can be installed in vascular imaging, the Chronon tube paving the way for a new, mobile one room with a minimum size require- is designed to deliver High Power workflow. Standardized work steps ment. With this setup, a shielded niche 80 – another feature migrated from allow users to run the scan with just a can sufficiently protect radiology staff. the premium CT segment – which few inputs. Automated postprocessThis room concept drastically reduces uses low 80 kV tube voltages at ing facilitates efficient scanner operinstallation costs. high mA to potentially reduce raation with zero-click reconstruction The SOMATOM go. platform’s diation dose and optimize usage of tasks that enable technologists with holistic service approach – the Siemens iodine contrast. •

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MEDICALDEALER 27

INDUSTRY UPDATE_OEM Update

VENTEC LIFE SYSTEMS RECEIVES FDA 510(K) CLEARANCE OF VOCSN Ventec Life Systems has announced intuitive touchscreen interface and 510(k) clearance from the U.S. Food user-friendly operating system. With and Drug Administration for VOCSN, VOCSN, caregivers can seamlessly the only portable life support device switch between therapies with the to combine five respiratory theratouch of a button and no longer need pies – Ventilation, Oxygen, Cough, to change the patient circuit between Suction, and Nebulization (VOCSN, therapies. VOCSN enables caregivers pronounced VOX-SEN). to spend less time managing machines VOCSN works across the continuand more time caring for patients. um of care, from the hospital to home, Following his father’s diagnosis and for pediatric patients weighing with ALS, Doug DeVries, founder and more than 5 kg to adults. VOCSN is chief executive officer at Ventec, dedidesigned to improve care for patients cated his work to creating better soluwith neuromuscular disease (e.g., tions for ventilator patients, including Muscular Dystrophies, ALS), impaired the portable LTV Series of ventilators. lung function (e.g., COPD, Cystic “I’ve seen firsthand how improved Fibrosis, Lung Cancers, Emphysema), ventilator technology can enhance the spinal cord injury, and pediatric devel- quality of life for patients and careopment complication (e.g., premature givers. Our team didn’t want to create births, Chronic Lung Disease). Patients just another ventilator, we spent the can get all five therapies or just the mix past five years focused on building a of therapies needed. truly integrated solution,” he said.

VOCSN is more than 70 percent New technology was developed lighter and smaller than existing mato provide best-in-class treatment chines, features a nine-hour on-board in a smaller, more energy efficient battery, and is controlled through an system. VOCSN is engineered and

Staff Reports

manufactured in the United States with eight pending patents.

Ideas from patients, caregivers, medical professionals, and a team of more than 30 leading engineers inspired VOCSN. “Since the iron lung, respiratory equipment has limited the mobility of ventilator patients. VOCSN was designed for everyday mobility so that patients can focus on their relationships with loved ones and live their life,” said Richard Branson, professor of surgery, University of Cincinnati and a member of the Ventec Clinical Board. •

TOSHIBA MEDICAL AND UNIVERSITY OF CALIFORNIA, SAN DIEGO COLLABORATE Researchers at the University of California, San Diego School of Medicine now have access to Toshiba Medical’s most advanced MR technology for cutting edge research in the fields of neurology, musculoskeletal (MSK) and non-contrast MRA, leveraging Toshiba Medical’s all-new Vantage Galan 3T MR system as the key diagnostic tool.

“This advanced research presents an opportunity to determine how Toshiba Medical’s MRI equipment can be used by health care providers to safely and effectively diagnose during neuro, MSK and non-contrast MRA procedures, which could ultimately impact a patient’s quality of life in the future,” said Hiroyuki Tsujino, general manager, MR Global Business, Toshiba Medical. “We are proud to have the researchers at UC San Diego School of Medicine using our Vantage Galan 3T MR system in these studies, which speaks to Toshiba Medical’s commitment in partnering with health care providers to identify the right imaging solutions for complex clinical situations.”

“The Department of Radiology is committed to working to improve both patient’s lives and population health at UC San Diego Health,” said Alexander Norbash M.D., M.S., associate vice-chancellor for Diversity, professor and chair of Radiology, adjunct professor of Neurosurgery and Neuroscience, UC San Diego School of Medicine. “In particular, we have focused on increasing the throughput, practicality, and utility of MR Imaging.”

Key researchers at UC San Diego School of Medicine include: Mitsue Miyazaki, Ph.D., principal investigator; Christine Chung, M.D., professor, Radiology, Musculoskeletal; Roland Lee, M.D., professor, Radiology, Neuroradiology; and Albert Hsiao, M.D., Ph.D., assistant professor, Radiology and associate director, Cardiac and Vascular Imaging in the Center for Translational Imaging and Precision Medicine. • 28 MEDICALDEALER | JUNE 2017

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PRODUCT FOCUS_Digital X-Ray_Market Analysis

Staff Reports

DIGITAL X-RAY MARKET CONTINUES TO CLIMB D

igital X-ray continues to grow in popularity, especially amid motivating factors such as reimbursement rates.

According to Technavio’s analysts, the global market for digital X-ray systems will grow impressively at a CAGR of over 13 percent by 2020.

Digital X-ray systems comprise the same basic parts as analog X-ray systems including X-ray sensors, amplifiers, image processing computers and displays. The demand for digital X-ray systems is growing at a significant rate since the procedure forms the basis of diagnosis and also the treatment of various medical conditions.

MarketsandMarkets, a research firm, predicts the digital X-ray market will reach new heights in coming years.

“The global digital X-ray market is expected to reach $10.46 billion by 2020 from $6.15 billion in 2015, at a compound annual growth rate (CAGR) of 11.2 percent from 2015 to 2020,” according to a MarketsandMarkets report.

“Among the various applications, the general radiography segment is WWW.MEDICALDEALER.COM

expected to account for the largest share of the market,” according to MarketsandMarkets. “The general radiography market includes chest imaging, orthopedic applications, cardiovascular imaging and other applications. Chest imaging segment is projected to grow at the

“ The global digital X-ray market is estimated to be worth $5.9 billion in 2016 and is expected to reach $11.1 billion by 2021.” highest CAGR from 2015 to 2020.

The high growth of chest imaging segment can be attributed to the increasing incidence of lung diseases.”

Mordor Intelligence also forecasts growth for the digital X-ray market in coming years.

“The global digital X-ray market is estimated to be worth $5.9 billion in 2016 and is expected to reach $11.1 billion by 2021, at a CAGR of 13.2 percent,” according to Mordor

Intelligence. “The global X-ray market is dominated by computer radiography X-ray systems as they are relatively less expensive than digital radiography X-ray systems and entail less retraining of medical practitioners.”

Transparency Market Research forecasts continued growth in the flat panel X-ray detector market.

“The global flat panel X-ray detectors market is being projected at a CAGR of 5.9 percent in terms of value from 2016 to 2024. The market’s revenue at the end of 2016 was calculated to reach $1.08 billion and is expected to reach $1.72 billion by the end of 2024,” according to Transparency Market Research.

The market for mobile digital X-ray systems is projected to grow at a 7.1 percent CAGR during the next nine years, with North America continuing to be the dominant market, according to the market research firm Future Market Insights.

MarketsandMarkets says the key players in the digital X-ray market include Carestream Health Inc., Fujifilm Medical Systems, GE Healthcare, Hitachi Medical Corp., Philips Healthcare, Siemens Healthineers and Toshiba Medical Systems Corp.

MEDICALDEALER 31

PRODUCT FOCUS_Digital X-Ray_Product Showroom

Staff Reports

JUNE PRODUCTS: This month, Medical Dealer explores Digital X-ray

TOSHIBA MEDICAL

RADREX-i

T

oshiba Medical’s automated RADREX-i digital radiographic system reduces overall procedure time and enhances workflow. The robust system is available with a wireless detector and includes features necessary for imaging a variety of patients, making it an ideal, cost-effective X-ray system for hospitals and imaging centers. This bariatric-friendly system features RexProtect dose management technology, RexSpeed technology to automate workflow, and RexView with image preview to enhance patient care by allowing technologists to make point-of-care decisions. Additionally, the wireless system comes with a single-panel version, making X-ray technology more affordable and enabling clinicians to perform more efficient exams. • 32 MEDICALDEALER | JUNE 2017

MEDICAL EQUIPMENT, PARTS & SERVICE

Digital X-Ray_Product Showroom

CARESTREAM

DRX-Evolution Plus

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his system includes a motorized wall stand with a bucky angulation feature that expedites cross-table and other complex exams. The standard table simplifies patient positioning and an optional table supports patients up to 705 pounds. A motorized overhead tube automatically tracks detector movement for fast source-to-detector alignment, which reduces fatigue and repetitive stress injuries for technologists. A remote control lines up the X-ray tube to either bucky to further streamline the imaging process. The system features an extended tube column, high-performance generator, and DRX Plus Detectors that can be shared with other DRX imaging systems. •

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PRODUCT FOCUS_Digital X-Ray_Product Showroom

Staff Reports

GE HEALTHCARE

Optima XR240amx with FlashPad HD digital detectors

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he Optima XR240amx with FlashPad HD digital detectors is a mobile X-ray system designed for use in critical and complex environments such as the ER or the NICU where it can be impractical to get important diagnostic insights from a fixed radiography room. A maneuverable design and small footprint allows the Optima to fit seamlessly in tight spaces. Flashpad HD next generation detectors enable clinicians to see fine details with exceptional contrast. The Optima XR240amx is a mobile X-ray system health care providers can rely on to make each patient the point of care. •

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MEDICAL EQUIPMENT, PARTS & SERVICE

Digital X-Ray_Product Showroom

PHILIPS

CombiDiagnost R90 premium cross-functional system

T

he CombiDiagnost R90 is a remote controlled fluoroscopy system in combination with high-end digital radiography. It is a consistent performer for all DRF studies. Its cutting-edge digital radiography capabilities convert a traditional fluoroscopy room into a high throughput 2-in-1 solution. The CombiDiagnost R90 supports fast, confident diagnoses with excellent image quality using Grid Controlled Fluoroscopy (GCF) and Dynamic UNIQUE image processing. The remote controlled tiltable table (-90° to +90°) is ideal for all standard fluoroscopy studies.

Additionally, the tabletop can hold a patient weighing up to 626 pounds without restricting movement. Excellent dose management features benefit both patients and staff. •

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PRODUCT FOCUS_Digital X-Ray_Product Showroom

Staff Reports

SIEMENS HEALTHINEERS

Multix Fusion Max

T

he Multix Fusion Max digital radiography system from Siemens Healthineers supports a full range of clinical applications, including general X-ray, trauma and emergency, chest screening, tabletop examinations, and high-throughput general X-ray. The system helps small- and medium-sized hospitals and clinics obtain the right configuration for their patient mix. Users can swap detectors with all radiography, fluoroscopy, and mobile systems in the Max family, boosting detector uptime and department-wide utilization. The MAXcharge feature prevents battery-related workflow interruptions since the MAX wi-D detector automatically charges when placed the table bucky or wall bucky. The ergonomic bucky wall stand enables head-to-toe imaging for standing, sitting or stretcher patients. •

36 MEDICALDEALER | JUNE 2017

MEDICAL EQUIPMENT, PARTS & SERVICE

Digital X-Ray_Product Showroom

PREFERRED VENDORS

DIGITAL X-RAY

SEE OUR Bayer Multi Vendor Service AD ON PAGE 3 625 Alpha Drive Pittsburgh, PA 15238 Phone: 844-MVS-5100 Email: mvscustomercare@bayer.com Website: www.mvs.bayer.com

Bayer Multi Vendor Service is your trusted provider for MRI coil, ultrasound transducer, CR reader and dry film printer repair. With exceptional repair capabilities, quality solutions and dedicated customer care, we provide excellent value in third-party service.

Classic Diagnostic Imaging, LLC 1333 Highland Road, Ste. F Macedonia, OH 44056 SEE OUR AD ON Toll-Free: 866-818-9729 PAGE 58 Phone: 330-425-4400 Fax: 330-425-4525 Email: sales@classic-imaging.com Website: www.classic-imaging.com Classic Diagnostic Imaging is a world leader in medical device refurbishment and repair. Classic offers an extensive inventory of quality tested and refurbished parts and equipment. From free tech support to rapid-fire response, Classic simply redefines medical service for all imaging modalities and manufacturers.

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SEE OUR Diagnostic Solutions AD ON PAGE 69 4935 S Prospect St, Ste D Ravenna, OH 44266 Phone: 330-296-XRAY (9729) Fax: 330-296-2555 Email: sales@diagnostic-solutions.com Website: www.diagnostic-solutions.com

Diagnostic Solutions is a customer service based parts provider that specializes in all imaging Modalities and Manufacturers. Created to offer hospitals and ISOs a cost-effective and time-saving solution for ordering imaging replacement parts. We are confident you will see Diagnostic Solutions as THE Parts Solution.

ED SLOAN & ASSOCIATES

SEE OUR AD ON PAGE 24

Ed Sloan & Associates 101 Old Stone Bridge Rd. Goodlettsville, TN 37072 Phone: 615-448-6095 Fax: 615-448-6099 Email: sales@ed-sloanassociates.com Website: www.edsloanassociates.com

Ed Sloan & Associates specializes in quality tested parts for GE CT, MRI, and X-ray. The company’s 110,000-squarefoot facility is equipped with 4 MRI bays, 8 CT bays, 4 X-ray bays and 2 C-Arm bays. Ed Sloan & Associates also offers complete systems sales as well as fixed and mobile system storage.

Exclusive Medical Solutions 455 E. State Pkwy, Suite 101 Schaumburg, IL 60713 Toll-Free:1 866-676-3671 Fax: 847-278-1155 Email: info@emedicalsol.com Website: www.emedicalsol.com

SEE OUR AD ON PAGE 6

Exclusive Medical Solutions is dedicated to providing the highest quality medical imaging equipment, services and parts at the best price possible. Established from a group of factory-trained engineers with over five decades of combined medical imaging equipment experience, Exclusive Medical Solutions provides services, parts, and equipment to hospitals, imaging centers, orthopedic clinics and independent practitioners throughout the United States. The company has the capability of setting up a turnkey ready imaging clinic with all the equipment needed. Contact Exclusive Medical Solutions today to find out how to save on high-quality medical imaging equipment, services and parts at up to 75 percent off OEM prices. Bilingual support available.

MEDICALDEALER 37

PRODUCT FOCUS_Imaging_Product Showroom

Staff Reports

PREFERRED VENDORS

DIGITAL X-RAY InterMed Group 13351 Progress Blvd.

Alachua, FL 32615 Phone: 386-462-5220 Email: Sales@intermed1.com Website: www.intermed1.com

Ray-Pac®

SEE OUR AD ON PAGE 2

The InterMed Group is a premier provider of integrated technology management services. We are focused on enhancing the overall quality, cost, and confidence in your equipment asset management.

Our biomedical, diagnostic imaging specialists and unique “Jump Teams” are empowered to deliver unmatched customer service and the industry’s best technology at competitive rates. We invite you to discover how our innovative technology, operational excellence, and deeply experienced and passionate professionals have earned us a blemish-free track record and reputation for consistently exceeding our clients’ expectations. We always bring the best.

M.I.T. / Medical Imaging Technologies 261 Quality Drive Thomson, GA 30824 Phone: 800-729-4776 SEE OUR AD ON PAGE 54-57 Fax: 706-843-9638 Website: www.mit-tech.com M.I.T. has provided top quality refurbished products and service for over 28 years. We are proud to announce that we now offer new, as well as refurbished, CT, X-ray and PET/CT equipment. We still have the same great service and quick response time that we are known for, and pride ourselves in getting our customers up and running as quickly as possible.

Metropolis International LLC Leon Gugel 21-11 44th Avenue, 3rd Floor SEE OUR Long Island City, NY 11101 AD ON PAGE 21 Phone: 718-371-6026 Fax: 718-371-6032 Email: info@metropolismedical.com Website: www.metropolismedical.com

Multi Diagnostic Imaging 990 E. Cedar Street Ontario, CA 91761 P: 909-591-6444 F: 909-591-5293 Toll-Free: 800-400-4549 multidiagnostic.com

Metropolis is one of the largest stocking dealers in the world with a large warehouse and office in the heart of New York City.

Metropolis provides all imaging systems; C-arms, DEXA, Ultrasounds, Mammography, Portables, CTs, MRI and Cath/ Angio. Metropolis has it all, that is the reason costumers are 110% satisfied with the Metropolis team.

Multi, Inc. is a premier global provider of diagnostic imaging and surgical solutions.

Specializing in Radiology, Surgical, Chiropractic, Orthopedic, podiatry and Mammography. Multi is able to meet the imaging needs of the smallest private and specialty practices to the largest in enterprise hospital facilities. Multi, Inc. High quality Solutions for a higher quality of Care.

38 MEDICALDEALER | JUNE 2017

SEE OUR AD ON BACK COVER

Ray-Pac 7290 Pepperdam Ave., N. Charleston, SC 29418 Phone: 843-767-8090 Fax: 843-767-1291 Website: www.ray-pac.com

SEE OUR AD ON THE IBC

Ray-Pac builds quality X-ray tube replacements for GE, Siemens, Phillips, Varian, Dunlee, Toshiba and Shimadzu.

Devotion to our distributors along with unmatched speed, quality and service is the reason our customers continuously count on Ray-Pac. Try our new Free inventory APP. With just one touch of a button, our free APP shows inventory ready to ship today or tomorrow. Visit Ray-Pac.com and click on “Inventory”

Rayence USA 2200 Fletcher Ave, Suite 705B SEE OUR AD ON Fort Lee, NJ 07024 PAGE 24 P: 201-585-0290 F: 201-585-0293 Toll Free: 1-855-RAYENCE(729-3623) www.rayenceusa.com Rayence Inc., headquartered in Fort Lee, New Jersey, is a subsidiary of Rayence Co., Ltd., a global leader in the design, development, manufacturing and supply of flat panel detectors (FPD) and digital radiography imaging systems. We offer a complete line of high quality a-Si TFT detectors in a variety of sizes that are specifically designed to allow a customized solution for diagnostic medical applications.

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LEARNING

®

// Leading Diagnostic Imaging Systems Service Training for Over 30 Years // The World’s Most Comprehensive Radiological Service Training Facility // Highly Skilled Training Staff to Maximize Your Understanding of Basic Imaging Modalities and Advanced Imaging Systems

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// Call 1.800.229.7784 to Register or View the 2016 Course Index and Schedule Online

EXPLORE // RSTI-TRAINING.COM

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ENGINEERED TECHNICAL FOR LIFE RSTI-EXCHANGE.COM

RSTI EXCHANGE

®

PROSPECTS

SOLUTIONS

Experts in Siemens Medical Imaging

// Visit RSTI Exchange Online and Shop Our Full Line RSTI Exchange of Pre-owned Equipment Technical Prospects, LLC Terry Speth- VP Director of Sales // Ask About Our On-Demand Service, Parts 1000 South County Road CB 30745 Solon Road Installations and Tech Support in Conjunction with Parts Purchases Appleton, WI 54914 Solon, OH 44139 // FOLLOW US ONLINE // SEE OUR SEE OUR // Access a Constantly Expanding Inventory of Parts Toll-Free: 877-604-6583 Toll-Free: 800-229-7784 AD ON AD ON in Stock for Most Manufacturers and Modalities PAGE 71 PAGE 15

Phone: 920-757-6583 Phone: 440-349-4700 // Call 440.349.4700 or Email Fax: 920-757-6591 Sales@RSTI-Exchange.com for Full Details Fax: 440-349-2053 Email: sales@technicalprospects.com Email: tspeth@rsti-exchange.com SHOP // RSTI-EXCHANGE.COM Website: www.technicalprospects.com Website: www.rsti-exchange.com RSTI_Ad-FP-Combo-2016.1.indd 1

Engineered for Life; Born in 2001 out of RSTI’s used equipment sales and a desire to add new layers of support for our students, RSTI Exchange provides fully tested, certified and warranted used equipment and replacement parts for most imaging modalities and manufacturers. Technical support and parts installation services are also available in conjunction with parts sales.

11/24/15 4:22 PM

Technical Prospects is your only alternative to new, pre-owned and refurbished Siemens Medical Imaging parts. Also offering engineer training on your Siemens Medical Imaging equipment, and technical support on your parts purchases, Technical Prospects is your partner at every stage. No matter your need, we are here to help you help the patient.

e h t e v e a t s da

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Tri-Imaging Solutions SEE OUR AD ON 10 Fant Industrial Dr. PAGE 11 Madison, TN 37115 Toll-Free: 855-401-4888 Email: sales@triimaging.com Website: www.triimaging.com Tri-Imaging Solutions is a technical training, imaging replacement parts, equipment, & service support com­ pany. We provide quality tested imaging parts – and can even help to install, we buy-sell-move equipment, and pro­vide technical & service support. Ask about our Education Roadmap to help biomeds move to imaging. All replacement parts come with a 90-day warranty. Available 24/7/365. #EmpoweringTheEngineer™

Orlando, FL • October 5-7, 2017 • PROUDLY SUPPORTED BY •

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PRODUCT FOCUS_Furniture_Market Analysis

Staff Reports

HOSPITAL BED, AND FURNITURE MARKET GROWING H

ospital beds, stretchers and other furniture play a role in patient safety, patient outcomes and patient satisfaction. As health care becomes more accessible on a global scale it makes sense that this segment of the global health care market will experience growth in the coming years.

More than one market research firm predicts growth in the hospital bed market.

“Hospital beds are used to provide assistance and relief to the patient during hospitalization,” according to market research firm MarketsandMarkets. “The features such as adjustable height/side rails and electronic devices/ operating buttons make these beds patient friendly and provide comfort to the patients. The global hospital beds market is categorized on the basis of type, technology, end user and geography.

Hospital beds market is segmented as regular/general purpose beds, pediatric beds, respiratory beds, ICU beds, home care beds, bariatric beds, bathing beds and pressure relief devices market.”

“Major factors contributing to growth of the hospital beds market include rising prevalence of chronic diseases, increasing aging population, increasing number of hospitalization cases and technological advancements,” MarketsandMarkets adds. “Furthermore, improved health care infrastrucWWW.MEDICALDEALER.COM

ture, rising middle class income and rising investment and advancement in health care sector are other factors providing impetus for growth of this market. The major trend to be seen in the future will be the rising demand for the advanced and selective features of hospital beds. In addition, the growing number of new and advanced hospitals in emerging economies of the world will drive the demand for hospital beds in the forecast years. However, high cost of hospital beds is a key limitation for the market, which restricts its affordability in low-income regions.”

P&S Market Research provides more details.

“The global hospital beds market was valued at $5.4 billion in 2015, and it is expected to grow at a compound annual growth rate (CAGR) of 4.6 percent during the period 2016-2022,” according to P&S Market Research.

“The global market is increasing, due to growing geriatric population and increasing health care expenditure.

In addition, the lifestyle changes are leading to chronic illness, due to the increased usage of caffeine, tobacco and alcohol. This has generated the demand for hospitalization, thus encouraging the growth of the global market.”

“Based on type, the general bed segment is expected to witness the fastest growth during the forecast period,” P&S Market Research adds. “Among the treatment types, the acute care bed segment had the largest market size in

Persistence Market Research reports that the global market for hospital beds will hit $6.7 billion by 2020. the global market during 2015; however the critical care bed segment is expected to witness the fastest growth, with at 5.1 percent CAGR during the period 2016-2022.”

Persistence Market Research reports that the global market for hospital beds will hit $6.7 billion by 2020.

Transparency Market Research adds that the overall medical furniture market is also expected to see significant growth over the next three years.

“The market of medical furniture is expected to show steady growth rate during the forecast period from 2014 to 2020,” according to Transparency Market Research.

The growth is anticipated to be driven by various factors, such as the increasing number of medical infrastructure across the globe, particularly in developing countries and steadily increasing technological innovations in hospital furniture. The rising number of hospitals across developed countries coupled with the high number of hospitals in developed nations is considered as the key factor driving market growth.

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PRODUCT FOCUS_Furniture_Product _Med/Surg_Product Showroom

JUNE PRODUCTS: This month, Medical Dealer explores Beds and Furniture

42 MEDICALDEALER | JUNE 2017

Staff Reports

HILL-ROM

Stretchers

A

rush to the operating room is not just about running down hallways and turning corners. It’s about the minute details that contribute to a safe and comfortable experience for caregivers and patients. Since stretchers have to accommodate all patient conditions as well as the caregiver’s functional needs in this uncertain environment, Hill-Rom prioritizes comfort and safety to enhance the patient experience. Hill-Rom Stretchers go beyond mobility and provide a safe and comfortable patient experience; simple and safe maneuvering; and durability to withstand caregiver demands. •

MEDICAL EQUIPMENT, PARTS & SERVICE

Furniture_Product Showroom

JOERNS HEALTHCARE

Chauffeur Universal Transport System

H

ealthcare providers often transport bariatric patients from one room to another in beds that are powered by integrated universal transport systems. Traditional systems propel beds forward and backward, yet caregivers continued to struggle when maneuvering around corners and in tight spaces. With increasing regulation around staff injuries related to lifting and overextension, Joerns Healthcare is delivering an innovative solution: the Chauffeur Universal Transport System with the world’s first side-to-side drive. The Chauffeur, a unique four-way directional transport system, was designed to improve bed maneuverability, improve staff efficiency and prevent injury during patient transport. •

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PRODUCT FOCUS_Furniture_Product Showroom

Staff Reports

MAC MEDICAL INC.

5th Wheel Transport Stretcher (PTF1000)

M

AC Medical Inc. announces the new 5th Wheel Transport Stretcher (PTF1000). The retractable center fifth wheel combines effortless directional movement and cornering with four swiveling wheels for ease of use, control and safety. Some standard features include a 750-pound weight capacity, 29-inch or 31-inch bed width, dual Fowler assisted lift back rest, 8-inch Tente casters (four swiveling), six brake/steer pedals, 4-inch comfort mattress, full perimeter bumper, lift/Trendelenburg pedals on both sides, two hook removable telescopic IV pole, six IV pole sockets, four restraint belt locations and an ergonomically located oxygen tank holder.• For more information, visit www.macmedical.com.

44 MEDICALDEALER | JUNE 2017

MEDICAL EQUIPMENT, PARTS & SERVICE

Furniture_Product Showroom

MEDLINE

Transport/Trauma Stretchers with Copper Rails

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ntimicrobial CuVerro copper rails on the Transport/Trauma Stretchers by Pedigo kill 99.9 percent of the bacteria that cause infection within two hours of exposure. The new EPA-registered, antibacterial copper surfaces are designed to help bring those numbers down. Exclusive to Medline, this durable stretcher with a weight capacity of 750 pounds also features a sixth wheel for easy handling, an easy-to-access oxygen tank holder in the care zone and a one-handed flush drop side rails. •

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PRODUCT FOCUS_Furniture_Product Showroom

Staff Reports

STRYKER

Prime Series Big Wheel Electric Stretcher

T

he Stryker Prime Series Big Wheel Electric Stretcher is an innovative design focused on advanced technology. With exclusives like Big Wheel advanced mobility, Chaperone bed exit system and an electric lift, caregivers can be more efficient while reducing the physical strain that accompanies transporting patients. Together with their customers, Stryker is driven to make health care better. •

46 MEDICALDEALER | JUNE 2017

MEDICAL EQUIPMENT, PARTS & SERVICE

Furniture_Product Showroom

PREFERRED VENDORS

BEDS AND FURNITURE ALCO Sales & Service Co. SEE OUR 6851 High Grove Blvd.

AD ON PAGE 47 Burr Ridge, IL 60527 Phone: 800-323-4282 Fax: 800-950-1167 Email: info@alcosales.com Website: www.alcosales.com Since 1952, our family has been providing quality medical equipment and replacement parts to the health care industry. We provide our customers with multiple ordering options. Our four “full line” catalogs and various “product specific” catalogs compliment our new online ordering website that offers over 70,000 products for your facility.

SEE OUR Government Liquidation AD ON PAGE 72 15051 N Kierland Blvd #300 Scottsdale, AZ 85254 Phone: 480-367-1300 Email: info@govliquidation.com Website: www.govliquidation.com

Government Liquidation (GL) provides buyers with access to an unparalleled variety and volume of surplus assets from organizations and the Department of Defense. We’re committed to delivering world-class buyer experiences through intuitive search functionality and accurate, detailed lot listings. GL invites you to purchase assets in over 500 different commodity categories including Medical, Dental, Test & Laboratory Equipment via internet auction.

Tenacore Holdings, Inc. 1525 E. Edinger Ave. SEE OUR AD ON Santa Ana, CA 92705 PAGE 8 Phone: 800-297-2241 Fax: 866-776-3101 Email: customerservice@tenacore.com Website: www.tenacore.com Tenacore has expertise in driving the cost out of owning capital equipment. Our multi-vendor repair lab houses factory trained technicians that specialize in infusion pumps, vital signs monitors, ventilators, ESUs, telemetry, wall suctions, cables and more.

Our trained technicians put patients first with every piece of equipment they touch, including refurbished equipment for sale. IDNs have adopted Tenacore’s techniques which compliments biomed departments by lowering cost, increases training and consolidates vendors.

800-323-4282

www.alcosales.com

Bed & Stretcher Parts - Wheelchair Parts - Casters NEW - RECONDITIONED - REPAIR

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TT MA Y B

1 MEDICALDEALER | JUNE 2017

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MEDICAL EQUIPMENT, PARTS & SERVICE

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MEDICALDEALER 2

Equipment purchases are just one aspect of a budgeting process that Tatikonda said is invariably a zero-sum game, and which includes considerations like facilities improvement, service roll-outs, supply chain and staffing. No matter how immediate the need to acquire new medical equipment, if it comes at the cost of something else, operational weight must be given to those strategies that help the institution differentiate itself from its competitors. In that sense, Tatikonda said the question of how to spend money is more properly a

Equipment purchases are just one aspect of a budgeting process is invariably a zerosum game, and which includes considerations like facilities improvement, service roll-outs, supply chain and staffing.

Mohan V. Tatikonda 50 MEDICALDEALER | JUNE 2017

question of how management best improves institutional culture. But those ideals can be difficult to sustain when executives in leadership positions turn over frequently.

“The strategy process for any enterprise has to be sustainable, and it has to be greater than the charisma of the current CEO,” Tatikonda said. “Budgeting by default becomes strategy, but it’s not a purposeful strategy process. This is a bit about corporate governance: turning long-term objectives into short- and medium-term doables.”

Hospital financial goals are sometimes contingent upon broader strategies that don’t always sync up with departmental needs. Calling for hard, across-the-board cuts sometimes “doesn’t show a lot of wisdom and it doesn’t reflect priorities” within the lines of service themselves, Tatikonda said. But it can drive greater economic discipline by forcing ranked choices.

“Whether the percentage is achieved or not may not be the real issue,” Tatikonda said. “It’s putting in place a system where ideas can percolate and be acted upon. The real aim is to drive certain creativity and behaviors.”

To that end, sometimes process and quality improvement (and the language associated with it) can have a bad connotation farther down the leadership chain “because of how some of these things get implemented in an organization,” Tatikonda said.

“There are people who are tired of the fad of the day, of the month; tired of another set of obligations when they’re already beyond 100 percent and so forth,” he said. “Most health care system executives first bang on cutting costs on the supply chain side because that’s easier than working on the physicians.”

Attorney Harry Nelson, managing partner of Nelson Hardiman, LLP of Los Angeles, California, blamed institutional siloing for inefficiencies in the sales and buying processes.

Good support for interdepartmental communications enables all stakeholders to participate in conversations about their needs, to adhere to institutional and system-wide strategic goals, and to follow industry and technological trends.

“One of the challenges for hospitals and other health care organizations around technology and software is that the pace of change has been accelerating,” Nelson said.

“It’s not rocket science to do the narrow, cross-comparison shopping, but asking the question of where we’re going on a three to five-year horizon is valuable.”

Nelson also blamed a saturated market full of high-quality technology solutions for overwhelming the discussion about equipment needs, particularly in the high-interest areas of informatics, clinical decision support, and electronic health records. By having “a strategic perspective in terms of pushing back on where things are going,” he believes institutions can cushion the inevitable shortfall created by technology obsolescence, especially as software inevitably gets exponentially cheaper and faster.

“There are all these tools, but it’s almost like the marketplace is too full of good products,” Nelson said. “I think people are investing in a whole generation of surgical training tools that are going to be surpassed by a generation of VR and augmented reality.”

“I think that the real question is looking for value: good process and good leadership,” he said. “A lot of the marketplace assumptions people were making are being upended, and you can see it when you look at the pricing. In that environment, a smart process is going to be one that pushes back on big purchases and looks for value.”

Nelson said those health systems that contract with third-party experts to guide their purchasing arrangements will make out the best in the MEDICAL EQUIPMENT, PARTS & SERVICE

current environment. Given the industry-specific expertise among technology and business enterprise leaders, there’s enough guidance available for hire that can pay for itself in the process.

“If you’re going about decisions as you have to find the wisdom on your own, and you’re not looking at some of the collective intelligence that’s out there, I think there’s a short-sightedness,” he said. “There are firms that will come in who offer enormous value when they earn a small percentage of the savings that they bring in.”

Bill Barber, vice president of operations for MD Buyline of Dallas, Texas, is an executive in an organization entirely dedicated to competing in the

which in turn prompts CFOs to pad their budgets to compensate, driving up costs significantly.

Barber said most purchases are dictated by capital equipment life cycles or larger business decisions, such as whether to add, remove, or overhaul lines of service. But within those decisions, he said vendor selections are determined by existing relationships among the parties.

That can lead to a superficial exploration of the marketplace and its available options.

“They go with someone they’ve worked with in the past, or they know the suppliers,” Barber said. “They know the type of need, the features and functionality, and then they name a price.”

that determine whether the hospital can perform enough with it to justify the cost. Sometimes the institutions can’t do enough with the technology to justify paying for its acquisition, maintenance and repairs. For that reason, Barber said his clients also seek comparable calculations to use in negotiating service-level agreements, purchase services like lawn care, laundry, food and consumables.

Creating a culture where purchasing decision-makers can get honest feedback all the way down their lines of service is critical to the budgeting process, said Dereesa Reid of Irvine, California. Reid, who co-founded a startup called Notable Systems and operates a consulting company

“ Whether the percentage is achieved or not may not be the real issue, it’s putting in place a system where ideas can percolate and be acted upon. The real aim is to drive certain creativity and behaviors.”-Mohan V. Tatikonda capital purchasing consultancy space.

MD Buyline operates in the intermediate space between vendors and hospital buyers, with technology experts, a database of equipment prices, and TCO/ROI calculations that help outline the parameters for individual purchasing decisions. The company has 3,000 hospitals members, and in the last 13 months has processed 60,000 quotes valued at a collective $6.8 billion. Part of the value the organization provides is in helping inform equipment purchases with tech briefs and supplier histories, but just as much of it has to do with pricing benchmarks. Barber said many supplier quotes are padded at the outset, WWW.MEDICALDEALER.COM

Sometimes, CFOs will invite departments to make capital equipment wishlists, but these are frequently scaled back depending upon the life expectancy of the technologies involved and the funds available. The bulk of budgets are taken up with annual replacement costs rather than any long-range planning.

“The optimal process would be to have an annual replacement budget and any new services budget,” Barber said. “We don’t see that too often within the hospitals. It’s plugging holes first.”

Decisions around equipment purchasing should be calculated against procedural breakeven points

called Care Infinity, operates with a foot in both worlds of value-driven healthcare technology startups and purchasing consultancy. As a former orthopedic institute CEO, she has experience building institutional lines of service, performing revenue-cycle calculations, and managing workplaces from academic medicine to physician joint ventures.

Reid said the equipment budgeting process always starts with addressing bottlenecks to patient care, and making sure inventories are stocked with working backup. Immediately thereafter comes revenue-generating equipment, which she said is forcing institutions to consider whether the MEDICALDEALER 51

technologies they purchase are truly money-makers. Part of the challenge comes in the fact that “by and large, you get paid the same” for surgeries performed with brand-new equipment as with legacy technologies.

Conversations are forced to be focused on operational efficiencies and patient demographics as much as on the age and condition of technological assets.

“There may be things you can invest in that actually improve efficiency,” Reid said. “The doctor’s time is some of the most expensive time spent in health care. If they can do a better job taking care of patients and moving them through safely, it produces a return on equipment.”

fact that hospitals would rather cut capital budgets before they cut positions, sourcing brand new devices requires a concerted institutional focus. Sometimes capital reserves are drawn from contingency funds, but they’re not the first place most leaders want to look to spend money, and as the economy contracts further, the same budgets are squeezed more tightly.

“The worst-case scenario I’ve seen is where a surgeon might want some very expensive piece of equipment and the hospital buys it and it sits in the corner and collects dust,” Reid said. “Those things don’t happen so much today. Buying hightech equipment to attract a single

“I would like to see financial analysts going into the nursing units,” Reid said. “The deeper they can be in the nursing department, the better they can understand the supply chain. Everybody in the finance and accounting team, when they have time, need to get out on the floors and talk to doctors and nurses. The decision-making process and budgeting process will be light years better.”

The returns on investing in a bottom-up culture as opposed to topdown decision-making are tangible for decision-makers as well. Closing the loop with front-line staffers can drive the kind of programmatic excellence that many institutions

“ surgery centers aren’t out there buying the latest and greatest stuff, It’s a different model of care. They buy what is good for the patient, and safe, but they don’t overspend. At what point is it want versus need?”-Dereesa Reid “Hospitals have been typically deeper pockets for the medical equipment industry, but surgery centers aren’t out there buying the latest and greatest stuff,” she said. “It’s a different model of care. They buy what is good for the patient, and safe, but they don’t overspend. At what point is it want versus need?”

Reid also maintains that device-makers don’t typically innovate equipment that is less expensive than its existing counterpart. The latest-and-greatest gear always costs more, she points out, and usually any cost savings occur in buying technology that’s at least a generation behind. Combined with the 52 MEDICALDEALER | JUNE 2017

surgeon is a real short-term thing that may or may not work. You don’t want to get into the business where you’re just buying toys.”

Like Hanson, Reid argued that organizational culture counts for a lot during the budgeting process, but those gains must be measured on a long timeline. When C-suite executives and physician leaders are able to more effectively communicate with their counterparts deeper in the ranks, it creates a culture of understanding that quality of care is based as much on institutional need and patient-centered value. It’s not the kind of strategy that works in a rapid fashion, she said.

pursue, but which few truly achieve.

To wit, Reid shared a story wherein a technician stopped her once in the hospital cafeteria to thank her for purchasing equipment that made his job function better.

“He understood on the front line that there was a process to getting a new piece of equipment so he could be more efficient in the OR and we could get more cases,” she said. “When was the last time that leaders really sat down and really talked to the front line – doctors, nurses, environmental equipment [users] – and said, ‘Does this piece of equipment really make a difference?’ ” MEDICAL EQUIPMENT, PARTS & SERVICE

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CORPORATE PROFILE

CORPORATE PROFILE: Medical Imaging Technologies, Inc. M.I.T. CELEBRATES 30 YEARS

M

Q:

edical Imaging Technologies is celebrating its 30 th anniversary of serving the health care community in 2017. Rick Player and Roger Stephens started M.I.T. in January of 1987 after working for Phillips medical. M.I.T. has been successful because it has always been honest with customers while also providing excellent imaging service. In its infancy, the company focused on servicing Phillips equipment, but shifted toward GE Healthcare devices as interest grew among hospitals and health care providers.

“To be able to stay in business, you have to see changes in the industry coming and change to stay with them,” M.I.T. Inc. Vice President Sarah Lee said. “Rick has always told me to remember what we are doing today because in a short period of time it will be completely different.”

54 MEDICALDEALER | JUNE 2017

Sarah Lee M.I.T. Inc. Vice President

Medical Dealer recently interviewed Lee to find out more about the company her father co-founded 30 years ago and what customers can expect from M.I.T. over the next 30 years and beyond.

What are some advantages that your company has over the competition?

A: Our advantage over the competition is our service ability. We have some of the best service engineers in the world. They really understand the systems and how everything connects which makes diagnosing problems much easier.

Also when a tech calls, we usually have them look at error logs for us so we can have the part with us to fix their system when we arrive on site. Also, like I mentioned earlier, we are honest with all of our customers. If you always keep them in the loop and are truthful, even if it is something they don’t want to hear, they understand.

Q:

W hat are some challenges that your company faced last year?

A: A challenge we continue to face is the growing trend of MEDICAL EQUIPMENT, PARTS & SERVICE

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consolidations with big hospitals buying all the small hospitals and independent doctors’ offices that we would normally have as customers. A way to overcome that is to partner with some smaller companies like ours to make a big company that can take care of all of the equipment the hospital has in its inventory. You must be able to compete with the OEM at the large hospital-level and offer what they can offer. You have to get creative.

Q:

C an you explain your company’s core competencies and unique selling points?

A: We have always said you can’t do everything and be really good at it. So, we try to be excellent in regards to the equipment we service and we partner with other companies we trust who do the things we don’t. We mainly focus on GE CT, Neusoft CT and X-ray WWW.MEDICALDEALER.COM

equipment. Our selling point is that we service these devices better than anyone else.

Q:

W hat product or service that your company offers are you most excited about right now?

A: We are really excited about being able to offer Neusoft CT because it is new equipment – not refurbished. It gets our foot in the door in some places where we had difficulty attracting customers before because some places only want new equipment.

Q:

What is on the horizon for your company? How will it evolve in the coming years?

A: The first 30 years have been successful and I am looking forward to the next 30 years as we continue to grow. We are going to continue to follow our model

of being a trustworthy company with talented individuals who can not only help but often exceed customers’ expectations. Also, we are hiring some new salespeople so I hope in the coming years we get more sales and the company keeps growing.

Q:

C an you share a time that M.I.T. “saved the day” for a customer?

A: The client is Crucial Care, they kept having different service companies let them down on their ability to service equipment and get them back up and running. Someone told the owner to call Rick and we took over service in 2007. They have loved our service ever since. They even talked us into getting trained on some other modalities we normally don’t like to service because they needed someone better than the company they were using to service those devices.

So, we got people trained in order to continue to take care of their needs.

MEDICALDEALER 55

CORPORATE PROFILE

Q:

Can you tell me about your company’s facility?

A: We have a 10,000-square-foot warehouse. We bring CT equipment in and use some of them for parts and others we refurbish and paint to sell them to customers.

We have parts that we use, we do not sell them to other companies.

The parts are kept in an inventory and they are set up on shelves until we need them.

Q:

C an you highlight some recent changes to your company?

A: Last year we started selling Neusoft CT. It was a big change for us to be able to offer a new CT product. In February of this year, we hired new salesman Billy Anguish in Florida. Last year, we did a partnership with Block Imaging where they bought some GE CTs to keep in our office and we tested parts on it. It gives us the ability

56 MEDICALDEALER | JUNE 2017

to get parts quicker and they get some parts out to their customers in the South quicker.

Q:

Can you share a little more about your employees.?

A: Frank Watts is our head service engineer he knows GE CT inside and out. He does our training and parts repair. Also, he is very good with electrical, IT, and is good mechanically. He is the total package when it comes to servicing imaging equipment.

He has been with the company for eight years and we are lucky to have him as an employee.

Q:

W hat is most important to you about the way you do business?

A: Honesty and great service are the most important aspects about the way we do business. We want to be able to sleep at night knowing we have never lied to a customer or said

something we couldn’t do. When we go to sleep at night we always know that we have done everything we can. Great service is a part of M.I.T.’s DNA. We work 24/7 to get customers up and running. Our engineers work overnight to fix problems on a regular basis so that our customers don’t have to miss out on patients.

Q:

I s there anything else you want readers to know about M.I.T.?

A: We have worked hard to build a good reputation in the industry that is how we survived 30 years.

Rick Player, my father, started this company and when he retires I want to keep everything he has worked hard to achieve in place. I want us to be known as good people who produce a good product and provide great service just like we always have.

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SLICE OF LIFE_Bobinski

By Dan Bobinski

MEETINGS ARE LIKE FOOD J

ust like food, the purpose of meetings is to keep an organization healthy and growing.

Therefore, it only makes sense that organizations hold the number and type of meetings needed to achieve (and sustain) their desired level of fitness and passion.

The parallels are eerily similar.

Just like overeating, attending too many meetings can be a cause of indigestion. At the opposite end of the spectrum we find organizations suffering from meeting starvation, and the health comparisons apply here, too. With insufficient or the wrong kind of meetings, organizations can stop functioning properly, lacking the strength to operate at optimal capacity. In other words, a lack of information creates malnutrition in the corporate body.

How do we find a balance between meeting bloat and meeting starvation?

Unfortunately, the answer is “it depends.” Just like people can have different nutritional requirements, the type and frequency of meetings you need depends on your organization, your industry, the ever-changing economy, plus where you are in a given business cycle.

To help you determine your own healthy balance of meetings, let’s look at why you have meetings in the first place. Meetings must have 60 MEDICALDEALER | JUNE 2017

Dan Bobinski Workplace Consultant

purpose! After all, it’s hard for people to get excited about attending too many, too few, or non-productive meetings. And, like I said earlier, organizations with too many unfocused meetings become sluggish, and incapable of responding quickly to problems.

An acquaintance of mine, whom we’ll call Carl, says too many meetings was a common problem at his workplace. During a monthly committee meeting, it was determined that a certain procedure had to be changed. Since Carl was quite familiar with the procedure and knew what needed to be fixed, he wrote out the needed changes, and at the end of the meeting he handed them to the committee chair. But rather than accept Carl’s input, the chair appointed Carl to sit on a review

committee which was to meet for two or three days to determine the best solution.

Suffice it to say Carl was not impressed, but striving to be a team player, he went. The meeting lasted three days. Carl tried conveying his solution, but the committee seemed more intent on fighting turf wars and pointing fingers. At the end of the third day, the committee chair was visibly frustrated. “We need something, people,” he said, “We need a solution!”

Carl had enough. Once again he wrote out his solution on a sheet of paper, but this time he took out another piece of paper and scribbled a few sentences. Then he stood up and handed both papers to the chair.

“What’s this?” the chair asked. “One is the same solution I gave you four days ago,” Carl said. “The other is my resignation. I quit.”

MEETINGS MUST HAVE PURPOSE

As mentioned earlier, the general purpose of any meeting is to keep your team healthy and growing. This means each meeting should accomplish two main goals: Keep people moving in the direction of company/ team goals, and increase a team’s efficiency and effectiveness. Beyond that, you can enhance the effectiveness of meetings by ensuring that each meeting has its own specific purpose.

It’s likely that you attend meetings scheduled by other people, MEDICAL EQUIPMENT, PARTS & SERVICE

TRIM 2.25”

_Bobinski

DO NOT HOLD MEETINGS IF NO CLEAR PURPOSE IS STATED

Meetings become much more efficient and effective when they have a clear purpose and/or an agenda.

We can clarify the purpose of our meetings by answering one or both of these questions: • At the end of this meeting, what decisions must I have in hand?

• What needs to be communicated?

We can further strengthen the value of any meeting when we answer the question, “How does this meeting align with our team/company goals?” It’s also a best practice to create an agenda for each meeting, and make sure each item identifies a person responsible for WWW.MEDICALDEALER.COM

presenting or leading the discussion on that subject.

MINIMIZE STATUS MEETINGS

With today’s technology, there’s little reason to hold most status meetings. The status of projects can be sent via email or updated in project management software.

That said, know that when communicating status electronically, you may need to devise a way to ensure people are staying up-to-date on a project’s status. Information overload often means some updates get overlooked.

FOR DECISION MEETINGS, DISTRIBUTE INFO AHEAD OF TIME

Jessica chose this rule because she felt too much time was being wasted presenting background on matters that required decisions. By sending out this information in advance, people can read it at times convenient to them. The benefits? People come to meetings already informed, plus they have time to think about what issues they want to discuss. The result is often better decisions. That said, when you send out material, be sure to clarify what decision(s) will be needed at the meeting.

TRAINING

This is part one of a two-part series on meetings. Next month, I’ll touch on how you can maintain a healthy balance of meetings in your quest for optimal organizational health.

Dan Bobinski is president of Workplace-Excellence.com and Everything-Training.com As a consultant, speaker, and trainer, he helps organizations of all shapes and sizes create excellent workplaces. He is also the author of numerous books, including the best-selling “Creating Passion-Driven Teams.” Reach him at dan@workplace-excellence.com.

MEDICALDEALER 61

TRIM 9.75”

but perhaps you also call meetings.

Although you have little control over the meetings scheduled by others, you have plenty of control over the meetings called by you or by people on your team, so let’s make that our focus.

Let’s consider another acquaintance of mine, Jessica. Not long ago, Jessica realized that one third of her week was spent in unnecessary meetings. In fact, half the meetings she was asked to attend had no stated agenda, and most of those felt like meetings just to have a meeting.

As a team leader, Jessica knew that others on her team had similar feelings, so one day she took a hard look at the different meetings she and her team were having. She decided on the following rules for reducing meeting overkill: • Do not hold meetings if no clear purpose is stated • Minimize status meetings • For decision-meetings, distribute information ahead of time if possible Let’s look at each rule independently.

THE OTHER SIDE_Fidele

By Jim Fidele

DEFENDING THE USED/REFURBISHED EQUIPMENT INDUSTRY A

nother potential purchase means another opportunity for a salesperson to shine or prove their ignorance. I recently had the opportunity to experience the latter. When I started to discuss other options besides purchasing a new laser, the salesperson retorted to sighting old examples of used equipment purchases that had gone bad. I found myself vehemently defending this industry, in hopes of educating this person.

Good relationships can be a double-edged sword. It is nice to have the trust and loyalty. However, ultimately the relationship is put to the test and I find myself working harder to maintain the relationship than I did to develop it. Because of this relationship I have, I was asked to help decide on a purchase of a new or different laser system. Since my department would be responsible for maintaining the laser, I willingly accepted the invitation without knowing or expecting what would transpire.

I performed my normal ritual for a new equipment purchase. I referred to the ECRI website for information on laser companies. ECRI does a nice job of providing a comparative analysis. I also checked the Internet for potential companies and called a few of my used equipment dealer friends for information. For the most part the search was routine, except the surgeons had 62 MEDICALDEALER | JUNE 2017

requested that a wave guide delivery system be included in the sale. This would end up being a limiting factor in our quest to find a suitable vendor.

As we all are aware, many medical equipment manufacturers no longer exist because big companies have bought them to eliminate competition.

Thus, our choice for a laser purchase was narrowed down to two OEM laser companies and whatever I could dig up on the refurbished market.

We contacted one of the major laser companies (let’s call them “Company A”) and scheduled a meeting with the local sales rep. Before setting up the meeting, I told the salesperson we were looking at all options – refurbished and new. I am thankful that the refurbished medical equipment companies exist. I truly believe that without the competition, prices for medical devices would be substantially higher. The gentleman came in, did his dog and pony show, and offered us some options. The problem for us was the laser he showed us was more than we needed and the price was more than we budgeted. He listened to our concerns and said his company had all kinds of payment and lease options.

We concluded the meeting, thanking him for his time and told him we would get back to him.

Since money was an issue and our laser usage has been steadily declining, I offered to continue to search for options. While I was searching, I was contacted by the salesman from Company A

“ A s we all are aware, many medical equipment manufacturers no longer exist because big companies have bought them to eliminate competition.” via email. He told me he went back to his manager and they had worked hard and had a great deal for us. He proposed a couple of “refurbished” lasers that would fit into our budget and would include the wave guide system. I checked the numbers and the prices were a bit high, so I played my “I am also checking a few refurbishers” card to see if there was some room for better pricing.

The card I played was followed by an email from the salesperson. It was filled with the typical anti-third party refurbisher rhetoric. Generally, I do not respond to salespeople when they start playing these games but this guy’s comments provoked an answer. I wanted to tell the guy to take his quote and laser and stick it somewhere.

His comments were as follows: “Do you ever know what you are really buying when you buy a used piece of equipment from an outside source?

Hospitals don’t sell CO2 lasers unless there are continued problems that lead to MEDICAL EQUIPMENT, PARTS & SERVICE

_Fidele

canceling cases (In my experience).

Company A will only provide parts and service for a laser for 7 years from the time we stop making a certain model. That means you will only purchase parts for “refurbished Laser A” another four more years through Company A. After that, it will be a hunt and search of waiting to cannibalize a laser for parts just to get your system back up and running.

We provide a laser tech on-site within 48 hours of a reported problem. Will you get that with a used laser?”

My response, after I cooled down, was “Thanks for the info, however I do disagree with some of your points.

Hospitals that close/consolidate also sell their lasers when they don’t need them. Also sometimes, a laser purchase is for a specific surgeon who then leaves. My point is, there are many reasons that a laser or any device may be available, for resale.”

As far as parts, I have had very good success at finding parts from other sources, sometimes it is preferred, due to the exorbitant costs OEMs charge when they are trying to outdate a product. I have purchased parts for an old Company A unit that is used for a private office practice, the parts were excellent and the third-party company offered great support and stood behind the part. Just in case you did not know, some OEMs generally just refurbish their own boards, so you are not getting a new board anyway.

I understand you are trying to keep us informed of the consequence of our choices, please know I am aware of them and aware of the benefits.

I am just making sure my customer has options.”

It is not near as harsh as I wanted it to be, but I have learned that it is best not to burn bridges. You never know who is going to end up signing your check these days.

Of course, after all of this, the manger of the OR was upset. I had to explain all the benefits of refurbished equipment. I had to spend a considerable amount of time convincing her that refurbished equipment is a viable option. I told her all the success stories we have had and shared some recent examples. I think I have her confidence back for now.

Unfortunately, this story does not have a happy ending, the wave guide issue proved to be a limiting factor in the refurbished market. We ended up purchasing the laser direct from the manufacturer, with the promise of a wave guide system to follow shortly. What ended up happening was the company stalled on getting us a wave guide system and then the salesman left. We never received the wave guide system we were promised. They refunded the money for the wave guide system but we are stuck with a laser that we paid too much for.

JIM FEDELE, CBET, has been with Medical Dealer magazine for more than 12 years. He is currently the director of clinical engineering for Susquehanna Health Systems in Williamsport, Pa. He can be reached for questions and/or comments by email at info@ mdpublishing.com WWW.MEDICALDEALER.COM

MEDICALDEALER 63

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SLICE OF LIFE_Off the Clock

Staff Report

EMORY HEALTHCARE ACHIEVES SAVINGS A

s many health care organizations continue to face a shortage of highly skilled critical care nurses and intensivists, telemedicine has become a crucial element in caring for critically ill patients regardless of location.

New data shows Royal Philips has helped Emory Healthcare exceed its goals for streamlining the system’s ICUs via use of population health solutions. Since the implementation of this program three years ago, Emory has provided care to more than 20,000 patients in five hospitals across the state of Georgia, while saving millions of dollars in costs.

Emory Healthcare’s eICU success was recently highlighted in the third annual “Evaluation of Hospital-Setting HCIA Awards” report by Abt Associates, conducted on behalf of the Centers for Medicare & Medicaid Services (CMS). This three-year independent audit analyzed financial and clinical outcomes at organizations that received CMS Innovation grants to tackle health care challenges with novel approaches and solutions. Emory’s program sought to improve care, value, and 66 MEDICALDEALER | JUNE 2017

access for patients by addressing the critical care staffing shortage.

Implementing an eICU program to remotely monitor ICU patients on a continuous basis helped care teams to recognize patients in need of immediate attention so they could intervene more quickly.

During the independent audit that spanned 15 months, the eICU program at Emory was compared to nine other hospitals in the Atlanta area to determine the success of the implementation. The review criteria were established by the federal government and the auditor, which reported that Emory achieved the following results across its 136 beds at five hospital sites: • $1,486 reduction in average Medicare spending per 60-day episode relative to the comparison group, yielding an estimated savings of $4.6 million around care of these federal beneficiaries during the 15 month comparison period. (p<0.01).

• 4.9 percentage point increase in the relative rate of discharges to home health care, while discharges to skilled nursing facilities and long-term care hospitals declined by 6.9 percentage points (p<0.01), indicating that Emory was

discharging patients with less need for institutional postacute care after their eICU stay.

• 2.1 percentage point decrease in the rate of 60-day inpatient readmissions (p<0.10) relative to the comparison group.

Medicare pays for home health care in 60-day increments, and more of Emory’s patients were discharged with home health care, which may have contributed to this reduction in 60day readmissions.

“Our mission at Emory is to deliver quality care to patients at a cost they and their families can afford and to provide access whenever and wherever people need it,” said Dr. Timothy Buchman, Director, Critical Care Center, Emory Healthcare. “These independent findings verify that our innovative approach to addressing a highly variable, complex patient population – those in the critical care unit – improves patient outcomes, allowing them to leave the ICU healthier, thereby reducing the need for patients and their families to have extended rehab stays or be readmitted.”

The findings at Emory confirm direct and favorable effects on MEDICAL EQUIPMENT, PARTS & SERVICE

New data shows Royal Philips has helped Emory Healthcare exceed its goals for streamlining the system’s ICUs via use of population health solutions.

patient outcomes and costs of care.

This has special significance for accountable care organizations that are taking on more financial risk and must pay for similarly highcost patients while adhering to high-quality standards. Using the Philips technology, Emory’s remote monitoring team was credited with providing timely interventions to the bedside team and ensuring patients received care for issues that may have otherwise gone undetected. The result was that patients received more complete care in the hospital, allowing them to recover in the home setting more often.

Additionally, the survey portion of Abt’s audit showed that patient satisfaction of those who received care at Emory’s facilities was more WWW.MEDICALDEALER.COM

favorable than reported by the comparison group. The findings also suggest that the eICU program at Emory helped improve affiliate provider training and increased the number of patients that one intensivist could cover.

“These findings have shown that increased stability with fewer complications has longitudinal benefits beyond when a patient leaves the ICU,” said Manu Varma, Business Leader, Philips Wellcentive and Hospital to Home. “As health systems transition to value-based care and depend more on population health tools, these long-term benefits to patients are not only reducing readmissions and improving outcomes, but also have the potential to increase hospital ratings and lower the cost of care.”

The results from the Emory program and the independent audit complement the findings of a study published earlier this year in CHEST that shows how comprehensive tele-ICU programs are impacting financial outcomes and driving substantial cost savings.

Philips’ population health management solutions, including dozens of eICU programs currently serving patients across the USA, are designed to leverage a proactive and seamless model to clinically transform the delivery of care to address growing clinician shortages, while improving patient outcomes.

For more information on the full suite of Philips population health programs, visit www.usa.philips.com/healthcare.

MEDICALDEALER 67

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www.keimedicalimaging.com MEDICALDEALER 73

REGISTER NOW The Conference For Imaging Engineers & Administrators

ADVANCING THE IMAGING PROFESSIONAL

Education • Networking • Exhibit Hall Visit www.attendice.com to view the educational line-up!

TOP 5 REASONS TO ATTEND

ICE2017 IMAGING CONFERENCE & EXPO JULY 24-25, 2017 • WASHINGTON, D.C. JULY 24-25, 2017 • Washington, D.C.

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CATEGORICAL INDEX

Anesthesia Multi Diagnostic Imaging Solutions…………BC Asset management Asset Management Associates, LLC………… 64 Auction/Liquidation Government Liquidation …………………………… 72 Biomedical AIV Inc.…………………………………………………………… 58 Ampronix …………………………………………………………7 BETA Biomedical Services, Inc. ………………… 69 Elite Biomedical Solutions ………………………… 29 Biomedical Global Medical Imaging ……………………………… 29 Integrity Biomedical…………………………………… 64 InterMed Group………………………………………………2 Maull Biomedical Training, LLC ………………… 65 Multi Diagnostic Imaging Solutions…………BC Retrieve Medical Equipment……………………… 78 Cardiology International X-ray Brokers………………………… 69 Multi Diagnostic Imaging Solutions…………BC Cardiology Southeastern Biomedical, Inc.…………………… 71 Computed Tomography Dedicated Imaging Solutions…………………… 30 East Coast Medical Systems ……………………… 64 Ed Sloan & Associates ………………………………… 24 Exclusive Medical Solutions…………………………6 International Medical Equipment & Service ………………………………………………………… 61 KEI Medical Imaging Services …………………… 73 Metropolis International …………………………… 21 MIT/Medical Imaging Technologies …54-57,70 MTC/Medical Technologies Co. ………………… 65 Multi Diagnostic Imaging Solutions…………BC PM Imaging Management ………………………… 73 Retrieve Medical Equipment……………………… 78 RSTI Exchange……………………………………………… 71 Technical Prospects……………………………………… 15 Tri-Imaging Solutions…………………………………… 11 Contrast Media Injectors Injector Support and Service……………………… 73 Data Media Radiology Data……………………………………………… 59 Diagnostic Imaging ENMET…………………………………………………………… 70 Injector Support and Service……………………… 73 Radiology Data……………………………………………… 59 Gas/Air Monitors ENMET…………………………………………………………… 70 General ALCO Sales & Service Co.…………………………47, 73 Government Liquidation …………………………… 72 Multi Diagnostic Imaging Solutions…………BC

76 MEDICALDEALER | JUNE 2017

Imaging Injector Support and Service……………………… 73 InterMed Group………………………………………………2 Imaging Parts Diagnostic Solutions …………………………………… 69 Infusion Therapy AIV Inc.…………………………………………………………… 58 Elite Biomedical Solutions ………………………… 29 Laboratory MIT/Medical Imaging Technologies …54-57,70 MTC/Medical Technologies Co. ………………… 65 Laser Multi Diagnostic Imaging Solutions…………BC Monitors/CRTs Advanced Ultrasound Elec./AUE………………… 63 Ampronix …………………………………………………………7 Bio-Medical Equipment Service Co. ………… 40 Multi Diagnostic Imaging Solutions…………BC Tenacore Holdings, Inc.……………………………………8 MRI Bayer Multi Vendor Services………………3, 18-19 Carolina Medical Parts ……………………………………4 Dedicated Imaging Solutions…………………… 30 East Coast Medical Systems ……………………… 64 Ed Sloan & Associates ………………………………… 24 ENMET…………………………………………………………… 70 Exclusive Medical Solutions…………………………6 International Medical Equipment & Service ………………………………………………………… 61 International X-ray Brokers………………………… 69 KEI Medical Imaging Services …………………… 73 MIT/Medical Imaging Technologies …54-57,70 MTC/Medical Technologies Co. ………………… 65 Multi Diagnostic Imaging Solutions…………BC PM Imaging Management ………………………… 73 Retrieve Medical Equipment……………………… 78 Nuclear Medicine Global Medical Imaging ……………………………… 29 InterMed Group………………………………………………2 International X-ray Brokers………………………… 69 Online Resources MedWrench …………………………………………………… 68 Patient Monitoring BETA Biomedical Services, Inc. ………………… 69 Bio-Medical Equipment Service Co. ………… 40 Integrity Biomedical…………………………………… 64 Multi Diagnostic Imaging Solutions…………BC Pacific Medical …………………………………………………5 Southeastern Biomedical, Inc.…………………… 71 Tenacore Holdings, Inc.……………………………………8 Probe Repair Global Medical Imaging ……………………………… 29 Radiology Ampronix …………………………………………………………7

Asset Management Associates, LLC………… 64 Collimare, LLC………………………………………………… 17 Radiology ENMET…………………………………………………………… 70 InterMed Group………………………………………………2 International X-ray Brokers………………………… 69 Maull Biomedical Training, LLC ………………… 65 Metropolis International …………………………… 21 Multi Diagnostic Imaging Solutions…………BC PM Imaging Management ………………………… 73 Radon Medical……………………………………………… 70 Rayence Inc.…………………………………………………… 24 RSTI Exchange……………………………………………… 71 Technical Prospects……………………………………… 15 X-Ray Parts, Inc.…………………………………………… 58 Recruiting Adel Lawrence Associations, Inc.……………… 73 Repair/Refurbish Advanced Ultrasound Elec./AUE………………… 63 AIV Inc.…………………………………………………………… 58 ALCO Sales & Service Co.…………………………47, 73 Carolina Medical Parts ……………………………………4 Dedicated Imaging Solutions…………………… 30 Ed Sloan & Associates ………………………………… 24 Elite Biomedical Solutions ………………………… 29 Global Medical Imaging ……………………………… 29 Government Liquidation …………………………… 72 Injector Support and Service……………………… 73 Integrity Biomedical…………………………………… 64 KEI Medical Imaging Services …………………… 73 MIT/Medical Imaging Technologies …54-57,70 MTC/Medical Technologies Co. ………………… 65 MW Imaging…………………………………………………… 53 Pacific Medical …………………………………………………5 Radon Medical……………………………………………… 70 Repair/Services Ampronix …………………………………………………………7 Bayer Multi Vendor Services………………3, 18-19 Bio-Medical Equipment Service Co. ………… 40 Exclusive Medical Solutions…………………………6 Multi Diagnostic Imaging Solutions…………BC PM Imaging Management ………………………… 73 RSTI Exchange……………………………………………… 71 Replacement Parts Advanced Ultrasound Elec./AUE………………… 63 AIV Inc.…………………………………………………………… 58 BETA Biomedical Services, Inc. ………………… 69 Carolina Medical Parts ……………………………………4 Classic Diagnostic………………………………………… 58 Dedicated Imaging Solutions…………………… 30 Diagnostic Solutions …………………………………… 69 Ed Sloan & Associates ………………………………… 24 Elite Biomedical Solutions ………………………… 29 Global Medical Imaging ……………………………… 29 Government Liquidation …………………………… 72 International Medical Equipment & Service ………………………………………………………… 61 KEI Medical Imaging Services …………………… 73 Multi Diagnostic Imaging Solutions…………BC PM Imaging Management ………………………… 73

MEDICAL EQUIPMENT, PARTS & SERVICE

CATEGORICAL INDEX

Radon Medical……………………………………………… 70 RSTI Exchange……………………………………………… 71 Technical Prospects……………………………………… 15 X-Ray Parts, Inc.…………………………………………… 58 Respiratory ENMET…………………………………………………………… 70 Radiology Data……………………………………………… 59 Sterilizers ENMET…………………………………………………………… 70 InterMed Group………………………………………………2 Surgical Ampronix …………………………………………………………7 Surplus Medical Government Liquidation …………………………… 72 Telemetry Tenacore Holdings, Inc.……………………………………8 Training Maull Biomedical Training, LLC ………………… 65

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Tubes/Bulbs International Medical Equipment & Service ………………………………………………………… 61 Technical Prospects……………………………………… 15 Tri-Imaging Solutions…………………………………… 11 Ultrasound Advanced Ultrasound Elec./AUE………………… 63 AIV Inc.…………………………………………………………… 58 Bayer Multi Vendor Services………………3, 18-19 Diagnostic Solutions …………………………………… 69 Exclusive Medical Solutions…………………………6 InterMed Group………………………………………………2 MW Imaging…………………………………………………… 53 Retrieve Medical Equipment……………………… 61 Ultrasound Parts Advanced Ultrasound Elec./AUE………………… 63 Global Medical Imaging ……………………………… 29 VCR Repair/Services Advanced Ultrasound Elec./AUE………………… 63

X-Ray Asset Management Associates, LLC………… 64 Bayer Multi Vendor Services………………3, 18-19 Classic Diagnostic………………………………………… 58 Collimare, LLC………………………………………………… 17 Diagnostic Solutions …………………………………… 69 Exclusive Medical Solutions…………………………6 International X-ray Brokers………………………… 69 MIT/Medical Imaging Technologies …54-57,70 MTC/Medical Technologies Co. ………………… 65 PM Imaging Management ………………………… 73 Ray-Pac………………………………………………………… IBC Rayence Inc.…………………………………………………… 24 Retrieve Medical Equipment……………………… 78 RSTI Exchange……………………………………………… 71 Technical Prospects……………………………………… 15 Tri-Imaging Solutions…………………………………… 11 X-Ray Parts, Inc.…………………………………………… 58 X-Ray Tubes Ray-Pac………………………………………………………… IBC

Wheelchair ALCO Sales & Service Co.…………………………47, 73

MEDICALDEALER 77

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Adel Lawrence Associations, Inc. ������������������ 73 Advanced Ultrasound Elec./AUE ������������������� 63 AIV Inc.……………………………………………………………………………………………… 58 ALCO Sales & Service Co. ���������������������� 47, 73 Ampronix……………………………………………………………………………………………… 7 Asset Management Associates, LLC ���������������� 64 Bayer Multi Vendor Services ������������������ 3, 18-19 BETA Biomedical Services, Inc. �������������������� 69 Bio-Medical Equipment Service Co. ����������������� 40 Carolina Medical Parts �������������������������� 4 Classic Diagnostic ���������������������������� 58 Collimare, LLC……………………………………………………………………………………… 17 Dedicated Imaging Solutions �������������������� 30 Diagnostic Solutions �������������������������� 69 East Coast Medical Systems ��������������������� 64 Ed Sloan & Associates ������������������������� 24 Elite Biomedical Solutions ���������������������� 29 ENMET……………………………………………………………………………………………… 70 Exclusive Medical Solutions ���������������������� 6 Global Medical Imaging ������������������������ 29 Government Liquidation ����������������������� 72 Injector Support and Service ��������������������� 73 Integrity Biomedical �������������������������� 64 InterMed Group ������������������������������ 2 International Medical Equipment & Service ��������������61 International X-ray Brokers ���������������������� 69 KEI Medical Imaging Services �������������������� 73 Maull Biomedical Training, LLC ������������������� 65 MedWrench……………………………………………………………………………………… 68 Metropolis International ������������������������ 21 MIT/Medical Imaging Technologies ������������� 54-57,70 MTC/Medical Technologies Co. �������������������� 65 Multi Diagnostic Imaging Solutions ���������������� BC MW Imaging……………………………………………………………………………………… 53 Pacific Medical…………………………………………………………………………………… 5 PM Imaging Management ����������������������� 73 Radiology Data………………………………………………………………………………… 59 Radon Medical………………………………………………………………………………… 70 Ray-Pac……………………………………………………………………………………………… IBC Rayence Inc.……………………………………………………………………………………… 24 Retrieve Medical Equipment ��������������������� 78 Retrieve Medical Equipment ����������������������61 RSTI Exchange…………………………………………………………………………………… 71 Southeastern Biomedical, Inc. ��������������������� 71 Technical Prospects ����������������������������15 Tenacore Holdings, Inc. �������������������������� 8 Tri-Imaging Solutions ��������������������������� 11 TTI Travel…………………………………………………………………………………………… 65 X-Ray Parts, Inc.……………………………………………………………………………… 58

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