A new look at OEM (original equipment manufacturer) service agreements

Next to personnel services, equipment maintenance is the second largest budgetary expense in large radiology departments. Because they are under constant pressure to contain costs, radiology administrators spend considerable time negotiating the best service at the lowest cost. Today, administrators have several options for imaging equipment maintenance: equipment maintenance insurance, in-house engineering, and various arrangements with original equipment manufacturers (OEMs) and independent service organizations (ISOs). In response to increased competition, OEMs have become more price-competitive with ISOs and have expanded their service menu and equipment maintenance insurance programs. OEM service menu options include: full service, tiered pricing, labor only, planned maintenance, full service with deductible, shared maintenance and extended warranty. Any type of service arrangement can be customized according to equipment age and sophistication, redundancy, income-producing potential, criticality of downtime and the strength and depth of the service organization. Even when vendor maintenance contracts are more expensive than purchasing service on a time-and-materials basis, they allow customers to budget accurately for the service of covered equipment. The authors' institution gets the best results for the best price from a judicious mix of maintenance options. Wise customers will explore many options before choosing a service agreement.