Six Key Considerations for Purchasing Equipment – Part 2

In our last blog, we talked about the daunting task of purchasing equipment and the questions you can ask to start preparing for large equipment purchases. If you missed last week’s blog, check it out.  This week we will explore budgets, service contracts and parts and consumables as the first of the six considerations for purchasing new equipment.  Let’s get started.

Six Key Considerations for Purchasing New Equipment:

1. 1. Budget – Budget is always a major concern when buying lab or hospital equipment. Organizations want to see a significant return on their investment, so not only should purchase price be taken into consideration, but also the cost to maintain the equipment.  A side-by-side comparison of the different available equipment types may help narrow your choices and simplify the decision-making process.Ask these questions when considering budget:
      a. How much are replacement parts or consumables? According to Medical Price, the average cost of Consumables and Supplies for medical equipment is $652.
      b. How does the purchase price, features, and diagnostic capabilities compare to similar makes and models on the market?
2. Service Contract – When looking into service contracts for your equipment, first you must find out if a warranty is provided at the time of purchase.  According to MultiLab, most standard warranties last about 90 days.  While 90 days is the standard, just keep in mind that this can vary across manufacturers.  Be sure to verify how long the warranty is effective.  After the warranty period expires, it’s extremely important to consider what service contract terms and conditions are available and at what cost.Ask these questions when reviewing service contracts:

a. Is the service agreement long or short-term?

b. Is there an auto-renewal clause?

c. What are the cancellation fees?

d. Is there a guaranteed response time?

e. Are parts and travel included in the contract cost?

Before signing a service agreement with the Original Equipment Manufacturer (OEM) or Third-Party Vendor, make sure to understand exactly what is included and excluded because you may lose your negotiating leverage once the service contract has been signed. It’s important to keep in mind that alternatives to the traditional service contracts are available—time & materials, preventative maintenance only, loaner or depot service, or utilizing an Equipment Maintenance Management Program (EMMP).  

3. Availability of Parts & Consumables – It is imperative that availability of parts and consumable costs are taken into consideration before buying equipment.Ask these questions when considering parts and consumables:
   a. Is the equipment proprietary to the manufacturer?
   b. Does the cost for parts and consumables (new or refurbished) fall within your equipment maintenance budget?

There are more expenses tied to an equipment purchase than the initial capital investment so be sure to review the language pertaining to parts and consumables in the service agreement. You may want to consider interviewing alternative service providers who are certified to perform the required maintenance on medical or lab equipment being considered to weigh all the options.

We’ve talked about budget, service contracts and parts and consumables as it pertains to new equipment purchases. Now, let’s us know what you think about these considerations and share some of your own thoughts in the comments.

Next week, we’ll explore the final three considerations for purchasing new equipment—technical support and system updates, end-users, and usage. See you next week.