Service providers pushed to broaden portfolio

October 27, 1999

With hospitals demanding service packages that go beyond maintenance and system repair, imaging service providers are being challenged to offer their clients more comprehensive contracts, according to a new report by market research firm Frost &

With hospitals demanding service packages that go beyond maintenance and system repair, imaging service providers are being challenged to offer their clients more comprehensive contracts, according to a new report by market research firm Frost & Sullivan of Mountain View, CA. The U.S. Medical Imaging Service Markets report examines services provided by OEMs and independent service organizations (ISOs), and finds that these service providers are beginning to include asset management, technology assessment, training, and consultation in their offerings to their customers.

The report details the industry’s revenue growth for 1998: Markets for U.S. medical imaging services saw revenues of roughly $2.9 billion last year. Growth in medical imaging has remained relatively flat since 1995, due to declining service prices, increased in-house market share, and the maturity of the industry’s installed base.

In response to worldwide recession and reimbursement cuts, hospitals have reduced their spending. But Frost & Sullivan’s report finds that purchases are beginning to increase again, due in part to services OEMs are offering for their installed-base clients. The research firm emphasizes that, in order to capitalize on the market, OEM service providers will need to service proprietary systems other than their own.