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Report sees solid refurbishing market
Mountain View, CA, healthcare research firm Frost & Sullivan reported last month that the refurbished medical equipment market claimed revenues of more than $723.5 million in 1997, according to the firm's World Markets for
Mountain View, CA, healthcare research firm Frost & Sullivan reported last month that the refurbished medical equipment market claimed revenues of more than $723.5 million in 1997, according to the firm's World Markets for Reconditioned/Refurbished Diagnostic Imaging Equipment report. With managed care affecting healthcare costs, many small hospitals and private practices have acquired reconditioned or refurbished equipment.
Hospitals' efforts to eliminate superfluous services or to merge and downsize have resulted in a surplus of equipment in larger hospitals, according to Frost & Sullivan analysts. Although the surplus feeds the reconditioned/refurbished industry with a ready supply of used equipment, the industry continues to deal with its customers' quality-control demands, especially since the Food and Drug Administration has been under increased pressure to monitor the U.S. refurbished market. The current market is dominated by small, private companies, but if the FDA increases its scrutiny, these small companies may be required to partner with large manufacturers, the report states.
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