From the Lens: Adding Cardiac Catheterization Service to Your HTM Program

11.01.2015

Now that you have mastered the imaging systems that would be considered the low hanging fruit, such as the Mobile X-Ray, C-Arms and general Radiographic systems, a good way to continue your growth is to add the Cardiac Catheterization Labs to your program.

If you have a program that has already dropped all contracts and you are maintaining your Cath labs under a T&M (time and materials) agreement, most of your risk and expense can be reduced by bringing that service in-house. If you happen to be an ISO, regardless of your size, adding Cardiac Cath to your available services will offer the potential for new revenue streams and growth.

Here is some information to help with justifying a plan to drop or severely modify your existing service contract(s) on Philips Allura FD Family cath labs:

The average purchase price of a cath lab is around $800k for your basic unit and about $1.5M, well equipped, in car dealer lingo. With a service contract cost of between 10 and 12% of the original purchase price, your annual maintenance contract costs could range from around $80k to $180k depending on your system configuration and leverage with Philips. Adding options like extended coverage (after-hours) will drive that cost even higher.

The average life span of the X-Ray tube and the detector (the two most expensive replacement parts) is roughly 5 years each. Clearly there are exceptions that can be pointed out, like the tube that lasts 8 years or the detector that fails in the first year.

  • The OEM labor charges are about $500/hr, $750/hr after 5:00pm and $1000/hr for weekends and holidays.
  • The price of a new tube from the manufacturer is about $181k and on average a used tube costs around $30k to $100k depending on age.
  • The price of a new detector is roughly $195k, and the average used detector cost ranges from $40k to $150K, again depending on its age. 
  • Training at RSTI is $12999.00 and requires two weeks travel to Solon, Ohio.

Let’s take a look at some numbers...

Contract cost for a middle of the road Philips Allura FD system (3 and 4 Years)


Projected cost to service the same middle of the road system yourself assuming worst case (failed X-Ray tube and detector) using new from OEM and newest possible used replacements:


These numbers reflect worst case wherein the two most expensive components fail, which is highly unlikely. That being said, should worst case happen, the only point at which you would lose is in a three year deal where you bought only OEM new parts. All of the other comparisons show exceptional potential for savings. Clearly these scenarios only account for the big ticket items and certainly there could be other expenses incurred during these time windows due to other normal maintenance occurrences.

I have written many articles that extol the virtues and savings of servicing your own equipment. This time I thought I would include some real numbers to help you write your justification to attend training and get away from that contract. 

Dale Cover, President


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