An aging population and influx of newly insured people will likely spur demand for healthcare services and more physician visits, thus boosting demand.
Los Angeles, CA (PRWEB) October 22, 2013
Medical and surgical equipment repair services have a buyer power score of 3.8 out of 5. This score reflects slow growth in prices over the past three years as a result of steady demand for healthcare services. “Medical equipment repair services are largely seen as nondiscretionary expenses because any improperly maintained equipment may have adverse consequences on patient health and safety; therefore, healthcare providers are willing to invest in keeping the equipment running properly,” says IBISWorld procurement analyst Anna Son. The low level of price volatility provides buyers with some degree of flexibility when entering the purchasing process. In anticipation of stable prices, buyers have time to evaluate their repair needs, as well as alternatives, including establishing an in-house repair center and hiring in-house technical staff, without fear of major price swings.
Given the large pool of medical equipment repair service suppliers that contribute to low market share concentration, the total cost of switching suppliers is low. “Intense competition among suppliers has driven down response times and prevented the prices of repair services from spiking,” says Son. Consolidation in the overall healthcare sector is propelling consolidation among medical equipment repair service providers. The advantages of consolidation include the ability to serve customers with multiple locations, purchase inventory in large volumes, share knowledge and expertise and develop technology platforms and decision support systems. However, consolidation among medical equipment repair service suppliers may diminish the negotiating power of buyers.
The average price of medical equipment repair services is forecast to continue rising over the three years to 2016. The aging population and the number of insured people will spur demand for healthcare services and medical equipment, while changes in technology will increase the types and complexity of medical devices. Although the supply chain risk and the risk of falling downstream demand are medium, the medical device sector is highly regulated, and therefore, any changes in regulations may significantly impact buyers. Major vendors include Cardinal Health Inc., Henry Schein Inc., and Owens & Minor Inc. For more information, visit IBISWorld’s Medical & Surgical Equipment Repair procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of medical and surgical equipment repair services, including the repair of various electronic, electromechanical and hydraulic equipment used in hospitals and healthcare providers’ offices. These services can include small equipment repair, instrument sharpening, sterilizer repair service, full restoration of medical equipment and preventive maintenance options. Because many healthcare practitioners rely on medical devices for running tests and diagnosing patients and depend upon the accuracy of the readings, they frequently demand scheduled maintenance to ensure the functionality and effectiveness of medical equipment.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.