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The secondary market for diagnostic imaging equipment has matured into a full-blown market for vendors and a money-saving option for hospitals. What began as a refurbished equipment alternative used primarily by small, rural hospitals has become the choice of a growing number of larger, urban institutions as well. Hospitals increasingly recognize the opportunity to obtain high quality used equipment at vastly lower prices than those for new equipment.
Vendors in the secondary imaging market predominantly remanufacture products involving radiography, radiography/fluoroscopy (R/F), mobile X-ray systems and mobile fluoroscopy systems.
Hospitals are now also purchasing remanufactured equipment for their cardiac catherization labs, mammography departments and for departments that use remote R/F systems.
Hospital demand for remanufactured systems originated with rural institutions, mostly because the rebuilt products are priced at about half that of comparable new equipment, said Matt Baroli, president of Refurbco, Sylvan Lake, Mich. With almost 200 machines remanufactured in the past year and a new plant in operation, Refurbco is the leader in a field generally populated by a series of small operations scattered around the country.
In the previous year, the company produced almost 175 systems. The price differential on remanufactured equipment allows smaller hospitals to acquire high-technology equipment at low enough prices that the hospitals have adequate referrals to justify the cost. Refurbco has plans to remanufacture other high-priced CT scan and MRI equipment as well.
Mobile X-ray systems costing about $40,000 new are priced at under $20,000 by...