Replace or Repair Medical Equipment - How do You Decide?

Caregivers grumble about equipment that has stopped working… again. Accountants are concerned about spending. Headlines scream that landfills are full.

Should you replace medical equipment or repair it?

For many healthcare facilities the knee jerk response is to repair. Unfortunately, in the long run, this can be costly on multiple levels, including public perception.

Not to mention that over time manufacturers make business decisions to stop producing replacement parts for older products they would like to phase out completely.

Replace or repair? It’s a conundrum.

How do You Decide?

First, consider these two questions:

• How much does it cost to repair vs the cost to replace?
• How old is the equipment?

As a rule of thumb, if the cost to repair is more than 50% of the cost of replacement

AND

the equipment is more than 50% of the way through its expected life cycle then the answer is REPLACE.

Start with the math (it makes the accountants happy) then consider these commonsense factors before making a final decision:

• Service History - Has the equipment been out for repair more than in service?
• Performance and Reliability – Is the equipment still performing like it did when it was new?
• Overall Condition – Patients can perceive older looking equipment as being technologically outdated and less effective in their care.
• Impact on Productivity – What is the cost of downtime related to out of service or poorly performing equipment?
• Training - What is the cost of training on new equipment?
• Availability of Parts – Does the equipment manufacturer still sell replacement parts?
  

Before rushing off to prepare that purchase order, let’s pause for one more moment and think on these qualitative considerations.

• Obsolescence - Manufacturers generally don’t discontinue a product just for giggles. New products usually boast improvements to ergonomics that up the standard of patient and staff safety in addition to cutting edge technology. And, it’s worth mentioning again that patients can be fickle and may choose facilities with the newest equipment thinking that they will receive better care.
  
  
• Warranties – New equipment means new warranties that often include annual maintenance by the manufacturer. Consistent annual maintenance almost always translates into equipment performing at optimal levels for longer. As a bonus, there should be less grumbling from healthcare workers about faulty equipment.

While there are many reasons to choose new medical equipment over repairing your current assets there are also scenarios where it is much wiser to repair. For example, when repair

• is affordable,
• increases a device lifespan, or
• supports high-value care and positive patient outcomes.

At the end of the day the decision to replace or repair is almost never straightforward. It must be a case-by-case evaluation of the equipment in the broadest possible terms, with the future in mind.

Taking the time to methodically answer the question of replace or repair will leave your facility in good standing with respect to cost, performance, and sustainability.

Just think, no more frustrated accountants or grumbling workers and you can feel good knowing that you are doing your part in the battle for sustainability.

CME’s equipment specialists are here to help you choose the best products, at the best prices, to fit your needs. We also offer Biomedical Services to help extend the lifespan of your medical equipment with equipment repair and preventative maintenance.

About CME: CME Corp is the nation’s premier source for healthcare equipment, turnkey logistics, and biomedical services, representing 2 million+ products from more than 2,000 manufacturers. With two corporate offices and 35+ service centers, our mission is to help healthcare facilities nationwide reduce the cost of the equipment they purchase, make their equipment specification, delivery, installation, and maintenance processes more efficient, and help them seamlessly launch, renovate and expand on schedule.

For more information about our products or services, please contact your local CME account manager, visit our website at www.cmecorp.com, or call us at 800-338-2372.