Streamlined Hospital Budgets Prepare Europe for Upswing in Refurbished Medical Imaging Equipment

Already popular in private healthcare, increasing global acceptance of refurbished equipment is encouraging acceptance in the public sector.

The Eurozone economic slowdown has made it tough for hospitals, especially in Southern Europe, to acquire new imaging modalities. With limited budgets and the rising number of medical procedures, the need to spend less on technologies while gaining the optimum benefit from them has sustained demand for high-quality refurbished imaging equipment, according to new market research.

Refurbished systems, as a result, are now favored across most imaging departments, including mammography, nuclear medicine, and minimally invasive surgeries in private hospitals.

New analysis from Frost & Sullivan’s (Mountain View, CA, USA), an international growth consultancy company, found the market earned revenue of USD 417.6 million in 2012 and estimates this to reach USD 582.3 million in 2019. “Growth of the private healthcare sector has increased the uptake of high-quality imaging modalities, as private hospitals focus strongly on returns on investment,” said Frost & Sullivan Healthcare research analyst Raghuraman Madanagopal. “Refurbished medical imaging equipment provides these hospitals with an opportunity to stay ahead of competitors by conducting more advanced procedures at a lower cost.”

Nevertheless, the market, presents its challenges. Reimbursement laws across some European regions, for instance, such as France, compel reimbursement to be slashed by 50% if the equipment is older than five years. This drives some hospitals to buy new equipment. Moreover, regulations in certain countries such as Romania and Bulgaria restrict hospitals from buying old equipment using state-funded loans. Because almost all public hospitals are covered by the state, they choose newer systems over refurbished models.

“Government regulations that have restricted the purchase of used equipment in some regions are expected to ease following the rapid acceptance of refurbished systems globally,” noted Mr. Madanagopal. “With governments relaxing their regulations, the scope for these systems in the public sector will grow.”

Related Links:
Frost & Sullivan