Medical, Lab & IT Equipment Benchmarking & Analytics

Medical, Lab & IT Equipment Benchmarking & Analytics

August 01, 2016

Industry Tips

3 Great Ways to Save When Buying Linear Accelerator Equipment & Service

As you probably know, linear accelerators are great technology for radiation treatment of certain cancers. Almost every hospital has a linear accelerator, and the latest and greatest systems are used as prominent recruiting vehicles for patients and physicians alike.

As you also probably know, linear accelerators come with a hefty price tag. New linear accelerators cost over $4 million and service contracts can cost upwards of $300,000 annually for a single system. Because of its price, however, manufacturers are actually becoming more willing to help hospitals find ways to afford their technology…as long as you know where and for what to ask…

Here are 3 great ways to lower your linear accelerator costs:

  1. More Flexibility on Service Contract Pricing – Service contract costs for linear accelerators have been a tremendous financial burden for hospitals. Recently, however, independent service organizations (ISO’s) are gaining credibility in the market and have become a more viable option and cost less (up to 50% savings) than OEM service. In fact, the presence of a competitive ISO quote allowed one of our clients to reduce a 5-year service contract by $750,000, or 30% of its original quoted price.
  2. Training, Education, Installation and More Quickly Add Up – Linear accelerator quotes are filled with many smaller costs, including installation, training, education, etc., that can quickly add up. All of these costs can be negotiated, so make sure to ask for line-item details when evaluating a purchase. Manufacturer reps have been known to remove those costs from the overall deal when pressed for additional savings opportunities.
  1. Watch Out for a Changing Market Landscape – There are many competitive brands in the linear accelerator market, including Varian, Elekta and Accuray. And more options in the market should ultimately bring prices down. Be sure to ask for competitor quotes from all Suppliers before committing to one. It will help provide competitive leverage when participating in any negotiation.

Hopefully these three insights will help you and your hospital lower your linear accelerator costs.

Know the right price.

And get it.

Having the right information saves hospitals time and money on medical equipment lifecycle costs.

Scott Bosch

Manager of Clinical Engineering

Park Nicollet Health Services

“The groups responsible for managing technology in our healthcare organization need data and analysis to manage costs and make informed decisions. Miga’s EVMS platform is an important and valuable resource that helps us make the right decisions for both our clinical priorities and budget.”

Matt Werder

Chief Technology Officer

Hennepin County Medical Center

“Miga’s data is key to helping us be good financial stewards and validates we are using our resources wisely. The market intelligence provided by Miga’s EVMS platform has allowed us to save substantial amounts of money.”

"Miga’s ability to match equipment donated by their customers with the needs of our medical projects has been a most valuable and welcomed resource."

Jim Tierney

CEO

Suburban Radiology

“Miga’s data, analysis and expertise – in particular related to the fair market value of clinical equipment – is a critical resource we need to support strategic acquisitions, divestitures and joint ventures.”

Eric Hoag

Director, Corporate Strategy & Development

Allina Hospitals and Clinics

“Miga’s proprietary data and expertise was critical to our ability to close an acquisition deal quickly and with a high level of confidence in our valuation.”

Bill Barta

Corporate Director, System Imaging

Fairview Health Systems

“Miga’s objective information-based approach and understanding of the needs of hospitals makes them a valuable resource and helps us make the most cost effective spending decisions.”

Matt Blashill

Enterprise Director of Supply Chain

Lake Region Healthcare

"There’s a personal touch that sets Miga apart from their competitors. They don’t just offer great insights. They always take the time to provide additional analysis that is meaningful and actionable."

Dan Bazinet

Director of Clinical Engineering

Southcoast Health

“In all my years in health care, I’ve used a lot of benchmarking tools. Most simply repeat information passed along from others; Miga’s information tells me what’s really happening.”

COO

Community Hospital

"Miga's negotiating skills save us time and money. And their unique understanding of the market means we’re always playing from a position of strength."

Supply Chain Director

Regional Healthcare System

“All suppliers claim to have excellent customer service. Miga actually walks the talk and always has our best interest at heart. We love working with them."