The following article is written by Ray Midlam, product manager, certified pre-owned equipment for Olympus America.
Given the economy and the need to stretch budgets, purchasing pre-owned equipment may prove to be a viable approach for augmenting your facility's inventory. This is particularly true if your facility is looking to acquire backup equipment or equipment that will be used infrequently, such as specialty scopes. Naturally, the equipment you need must be available from the original equipment manufacturer (OEM) or in the secondary market, and it must be compatible with your existing equipment platform and peripherals. But taking those considerations as a given, here are five things to look at closely before you leap into the pre-owned equipment pool.
1. Supplier — Who is the supplier of the pre-owned equipment? If it is the OEM and it is a brand you trust, your sleuth work is done. If not, make sure you know who the third-party supplier is along with their reputation and how long they've been in business. You want a supplier who is able to stand behind the product during its usable life.
2. Condition — Next, consider the physical condition of the equipment. Also, be sure to find out if the model is still supported by the OEM, otherwise you may end up with a product with no access to replacement parts. And don't be lulled into complacency by a product sporting a "certified" or "CPO" label. This is an unregulated term with no standards to support it. So ask the supplier what, in fact, their "certified" label means and how the product was repaired. For example, if the equipment is an endoscope, did it undergo a rigorous refurbishment process with all parts inspected? Were the insertion tube and other worn or damaged parts replaced with OEM parts? If not, buyers beware: A scope that has been altered with third-party parts — even those purporting to be reverse engineered or "OEM-like" — is no longer FDA 510(k) compliant, which means it is no longer validated for reprocessing. Therefore, unless you are purchasing the pre-owned scope from the OEM, make sure to ask the seller for reprocessing validation for any of its modified parts. Also check with your facility's infection control department for any specific instructions relative to modified medical equipment.
3. Warranty — Certainly you want to consider the warranty period and ensure it is adequate. However, even a warranty with the most favorable terms is only as good as the supplier behind it. You need to be fairly confident they are going to stay in business while you own the equipment and that they can deliver on their promise in a timely fashion. Most sellers in the secondary market have no ready or reliable access to parts.
4. Parts — Many scope manufacturers do not sell their parts to the secondary market. The reasoning is that they, the OEMs, have no way to validate the repair protocols of third-party service providers. So you need to be aware of the OEM's position on parts. Then find out where the supplier is getting their parts and if they have ready access to them. You don't want to find yourself in the position of buying a pre-owned endoscope, only to find it has a damaged lens and the supplier can't repair it until they locate a similar scope in order to salvage parts.
5. Service — Finally, consider who will be supporting and servicing your pre-owned equipment. Will the seller help you install it, integrate it with your current system, train your staff and be on standby to troubleshoot any problems after acquisition? If so, what's their response time, and is it provided as remote support, or do they have field staff nearby to assist you onsite if needed? If you plan on having your pre-owned equipment serviced by your current service supplier, check first that it can be supported in its "as purchased" condition. Medical device OEMs, unlike third-party repair providers, must always restore equipment to factory specifications to ensure the equipment continues to comply with its original FDA 510(k) specifications. This is important to ensure patient safety as well as the device's ability to deliver reliable performance.
While there are many factors to consider before purchasing a pre-owned piece of equipment, there is only one compelling reason to buy it: price. While savings can be attractive and appropriate at times, make sure you're not saving $3,000 only to turn around and spend an additional $5,000 to get it refurbished because it can't be serviced in its "as purchased" condition. By paying attention to the five critical factors outlined in this article, pre-owned equipment can prove to be a wise investment and a good way to astutely allocate finite resources.
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