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Message posted by:- shubhangi ( shubhangitech@gmal.com ) On:-9-Apr-2010-at-15:21:58
Specialty hospital chains are eager to spread into smaller towns and the biggest cost benefit seems to come from using pre-used medical equipment. However, the new cost cutting mantra of specialty hospitals like Fortis Healthcare will be using refurbished or pre-owned medical equipments for health imaging and diagnostics for the very first time. These reused products are aimed to be installed in India''s tier II and tier III cities to help lower capital expenditure by at least 30% while about 10% of the total equipment purchases that is done will be refurbished. Fortis spent Rs 100 crore just on medical equipments last year and hopes to cut costs at its tertiary care centres anywhere between 35-70% and to bring it down to Rs 40 lakh per bed. Meanwhile, given the unregulated pre-owned medical equipment market in India, and the restriction on imports of such equipment, only 7% of the total medical equipments market consists of refurbished products. There is a huge growth to be seen in refurbished products business and it will be high margins for both. The focus on affordable healthcare and the need to diversify into smaller towns will necessitate cost reductions, though there are issues relating to guarantees on pre-owned medical equipment,. On the other hand, using pre-owned medical equipment will mean smaller hospital bills for patients and higher margins for both hospital chains and medical equipment manufacturers
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