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| Competitors React to Demand for One-Stop Shopping in Medical Imaging Service Markets |
MOUNTAIN VIEW, Calif., Sept. 29 /PRNewswire/ -- Hospitals are increasingly
requiring medical imaging service providers to assist them in areas that go
beyond traditional maintenance and imaging system repair. As a result,
service providers are broadening their portfolio to include asset management,
technology assessment, training, and consultation services. Winning service
providers will be those that also expand their geographical base to cover
entire hospital chains. Providing this type of one-stop shopping is expected
to remain a key to winning customers.
In 1998, the markets for U.S. medical imaging services totaled revenues of
approximately $2.9 billion, according to new strategic research by Frost &
Sullivan (http://www.frost.com). Growth in the U.S. medical imaging services
industry has been relatively flat since 1995, when, according to Frost &
Sullivan's U.S. Medical Imaging Service Markets, the market was worth
$2.85 billion. Reasons for this stagnant growth rate include: Declining
service prices, increased in-house market share (which exerts slight downward
pressure on total market volume), and the more mature status of the installed
base (resulting in marginal socket growth.)
U.S. Medical Imaging Service Markets analyzes the services provided by
original equipment manufacturers (OEMs) and independent service organizations
(ISOs). This research monitors the changing needs of end users and assesses
competitors' tactics as they attempt to meet customer demands. Frost &
Sullivan's research provides an evaluation of market drivers and restraints,
in addition to expert forecasts, offering a comprehensive overview of the U.S.
medical imaging services industry.
Although the global economic recession and cuts in reimbursements have
forced hospitals to curtail purchases of imaging equipment, there are signs
that purchases are again on the rise. As Frost & Sullivan Medical Imaging
Analyst Vasudha Badri says, "This fluctuating marketplace has encouraged
imaging equipment manufacturers to pursue other avenues to maintain a steady
stream of profits." Offering services for the installed base of equipment is
one means of sustaining revenues.
To capitalize on these markets, Frost & Sullivan stresses that OEM service
providers will need to work on proprietary systems other than their own.
"Multi-vendor service gives a company the opportunity to gain considerable
market share," says Badri.
Imaging equipment technology is changing rapidly, with many systems
becoming dependent on sophisticated information technology. According to
Badri, "While service engineers at OEMs are trained as products get upgraded,
engineers at ISOs are at a distinct advantage." Consequently, some ISOs have
failed to remain profitable and have fallen prey to acquisitions by OEMs. To
stay afloat, ISOs will have to make use of service training centers that can
bring engineers abreast with the latest technology advances.
This healthcare industry research has integrated the Market Engineering
consulting philosophy into the entire research process. Critical phases of
this research included: Identification of industry challenges, market
engineering measurements, strategic recommendations, planning and market
monitoring. All of the vital elements of this system help the market
participants navigate successfully through the medical imaging services
market.
Frost & Sullivan gives out Market Engineering awards to the medical
imaging equipment services industry to recognize companies that have worked
hard to make a positive contribution to the medical imaging equipment services
market. In giving these awards, Frost & Sullivan recognizes some of the
departments within the companies for their achievements in the past year.
The 1998 Market Engineering Competitive Strategy is presented to GE
Healthcare Services, a division of GE Medical. GE Healthcare Services has
strategically acquired independent service companies that provide a wealth of
seasoned field engineers and a well-developed customer base.
Consequently, GE Medical was also given the 1998 Market Engineering
Customer Service Award, in recognition of the company's ability to build and
maintain its customer relationships through fast response, good support, and
fair treatment of customer complaints and marketplace needs.
The 1998 Market Engineering Product Line Strategy Award has been given to
ADAC for its ability to thoroughly address the niche market of nuclear
medicine equipment. ADAC has historically focused on equipment sales but it
has also progressively added multi-vendor services and sales of refurbished
nuclear medicine equipment into its product line portfolio.
Frost & Sullivan's U.S. Medical Imaging Service Markets research has
identified the following entities as market participants and related
organizations: Accurate Imaging, Inc., Advanced Imaging Repair, AAC X-Ray
Service, ATL Ultrasound, Access Medical Equipment Group, ADAC Medical
Technologies, Alpine Solutions, Incorporated, American Medical Parts, Arrotech
Diagnostic Services, Biolabtec Company, BioMagnetics, BITS Limited, C & G
Technologies, Inc., C. I. C., California Diagnostic Services, Inc., Capintec,
COHR MasterPlan, Comp-Ray, Composiflex, Composites Horizons, Computed Imaging
Service, Inc., Ctronics, CMT Medical Technologies, Danatech International,
Inc., Data Investors, DataView Medical Services, Deccaid Services, Inc.,
Eyedot Computer, Inc., GE Medical Systems, Global Concepts, Inc., Hopkins
Imaging Systems, Image Technology Services, Inc., Independent Imaging
Services, Inc., InnoServ Technologies, Instrumentarium Imaging, Inc., JD
Imaging Services & Sales Inc., Kinetec BioMedical Services, Leisegang Medical,
Inc., Magnetech Engineering Services, Inc., Medical Engineering Service, Inc.,
Medx, Inc., Mid-Atlantic Imaging Services, MII, Mikron Services, Inc., NC
Systems, Inc., National Medical Diagnostics, Inc., Nova Technologies, Inc.,
NovaMed Biomedical Technology Services, NOVARE, National Medical Technologies,
North American Imaging, Inc., Parker Medical, Inc., Philips Medical, Picker
International, Racine Medical Electronics, ReMedPar, Inc., Serviscope
Corporation, Shimadzu Medical Systems, Siemens Medical Systems, SIETEC, Star
Technologies, Inc., Swissray Medical Systems, Inc., Synergistic Technologies,
Inc., Technology Management Group, Inc., Technology Renaissance Corp., Toshiba
America Medical Systems, Ultrascan, Inc., Universal Medical Services, Inc.,
USA Instruments, Inc., USI, Inc., Vision Medical Services, Inc., Vital
Imaging, Inc., Western Diagnostics, Xtronix, Inc.
Frost & Sullivan is an international marketing consulting and training
company that monitors the healthcare industry for market trends, market
measurements and strategies. This ongoing research is included as part of the
Diagnostic Imaging Custom Subscription, and is used to support industry
participants with customized consulting needs.
Visit Frost & Sullivan's Web site at: http://www.frost.com .
U.S. Medical Imaging Service Markets
Report: 5735-50 Date: July 1999 Price: $4,450
SOURCE Frost & Sullivan
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