IGS Maintenance Worth Its Price?
MD Buyline finds service contracts for image guided surgery (IGS) systems quite expensive, at up to 15% of the equipment’s price per year, while more expensive digital X-ray systems for instance come with significantly lower service fees in proportion to their acquisition price. These devices are typically reliable so vendors point to software upgrades, which themselves cost $20,000 to $40,000 separately, to justify $40,000 to $50,000 yearly service fees. This sounds in line with licensing schemes offered by software vendors such as Microsoft (whose customers initially challenged its Software Assurance program), but it’s actually in the hospital interest only if their IGS program is advanced enough to require it. Vendors should also be able to explain what improvements they plan to deliver for their annuity. Because at least some software upgrades will prove useful, and because a modicum amount of hardware maintenance and repairs is still required, facilities should still budget some significant costs but can end up saving over a full-fledged service package.
IGS was initially developed for neurosurgery but is now primarily used for sinus surgery (also known as computer assisted sinus surgery or CASS) because it is less invasive, avoids penetrating vital areas, and minimizes the need to cut through healthy muscles. In fact image-guided navigation is becoming standard in most surgical specialties. Medical Imaging wrote in 2004 that the “average system costs about $200,000 and has a life span of between 3 and 5 years.” Because their use provides visibility during minimally invasive procedures through natural cavities, they offer both benefits for patients (less pain and trauma, faster recovery) as well as cost savings (shorter hospital stays). And because operations are more precise, less revision procedures are necessary. MD Buyline is not questioning those numerous benefits, but simply reminding facilities to evaluate whether they need all the service they pay for.
January 4, 2006 Related topics: Surgery, Otolaryngology, IT & software, Cost savings