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Purse Strings Loosen as Providers Plan more Medical Equipment Purchases in 2011

GE and Siemens battle it out for market share and mind share in the imaging arena

2011-01-27
OREM, UT, January 27, 2011 (Press-News.org) According to a new market perception study from KLAS, providers are planning more purchases this year, up 10 percent from last year. The study, titled "Diagnostic Imaging Purchases 2010: Spending Increases, Loyalty is Tested," takes a look at the purchasing decisions made by more than 230 radiology departments regarding over $200 million worth of equipment purchases. While there are more providers making purchases this year, competition for those dollars is on the rise.

"Providers are less likely to remain loyal to a single vendor for modality purchases and are more likely to defer to other vendors as new product innovation and pricing pressures influence buying decisions," said report author Kirk Ising. "In fact, 10 percent of surveyed respondents said they will be including more vendors in the selection process than they did last year."

The top two vendors considered in purchasing decisions are Siemens and GE, number one and two respectively. Philips and Toshiba make up the second tier behind the leaders. Of the deals discussed, MRI was mentioned most often, followed by CT, ultrasound, digital X-ray and digital mammography.

Though providers have loosened their purse strings a bit, the economy has held back some deals and providers continue to make vendors compete hard for those still limited dollars. "Across all modality segments, certain trends emerged," Ising said. "Providers are shopping around more, because price matters. Vendors who are sympathetic to the current economic issues and offer sensible packages at fair prices will be rewarded contracts. Solid service and support is also a key selling point for providers."

Notable trends have emerged for each modality market segment. Wide-bore is still the hot ticket for the MR market segment. Siemens, the market leader in wide-bore technology, is the top considered vendor in that segment. Dose is what most providers are talking about when considering CT purchases. GE has the most mindshare in CT.

GE is also top of mind in the DR market segment, though Carestream is making a splash with their wireless technology. Providers considering an ultrasound purchase continue to turn to The Big 3: GE, Philips and Siemens, with Philips taking the top mindshare spot by a hair over GE. Digital mammography purchase decisions are dominated by Hologic, but GE remains the primary competitor to Hologic in this space.

To learn more about the diagnostic imaging market, as well as the vendor solutions being considered by potential buyers, the new KLAS report is available to healthcare providers online for a significant discount off the standard retail price. To purchase the "Diagnostic Imaging Purchases 2010: Spending Increases, Loyalty is Tested" report, healthcare providers and vendors can visit www.KLASresearch.com/reports.

KLAS is a research firm specializing in monitoring and reporting the performance of healthcare vendors. KLAS' mission is to improve delivery, by independently measuring vendor performance for the benefit of our healthcare provider partners, consultants, investors, and vendors. Working together with executives from over 4500 hospitals and over 2500 clinics, KLAS delivers timely reports, trends, and statistics, which provide a solid overview of vendor performance in the industry. KLAS measures performance of software, professional services, and medical equipment vendors. For more information, go to www.KLASresearch.com, email marketing@KLASresearch.com, or call 1-800-920-4109 to speak with a KLAS representative. Follow KLAS on Twitter at www.twitter.com/KLASresearch.


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[Press-News.org] Purse Strings Loosen as Providers Plan more Medical Equipment Purchases in 2011
GE and Siemens battle it out for market share and mind share in the imaging arena