Ambulatory surgery centers across the U.S. are facing challenging market conditions — provider shortages, rising costs and wages, declining reimbursements and more. Prudent financial strategies are increasingly important.
In particular, ASC facilities that perform gastrointestinal procedures are looking at how using certified pre-owned instruments like endoscopes can help stretch their budgets while supplementing their equipment inventory, allowing for greater flexibility to meet patient scheduling needs.
To learn more about why ASCs may be choosing to buy certified pre-owned (CPO) equipment, Becker's Healthcare spoke with three medical device industry leaders at Olympus that have an understanding of ASCs' challenges and opportunities:
- Philip Doyle, Executive Director of Marketing, Endoscopy Capital & Strategic Marketing, Olympus Corporation of the Americas
- David Hagen, Director of Quality, Olympus Surgical Technologies of America
- Manish Singh, VP., Business Unit Leader, Olympus Surgical Technologies of America
Olympus® CPO endoscopy equipment offers quality product at affordable prices
While endoscopy equipment is durable and can be used for years, it represents a substantial investment for ASCs. Buying new equipment is one option, but purchasing pre-owned equipment is an alternative worth considering as it can provide an economic solution.
However, not all pre-owned equipment is created equal. There are differences between pre-owned endoscopy equipment bought from a third-party vendor and CPO equipment purchased from an original equipment manufacturer (OEM), such as Olympus. One of the most important distinctions when working with an OEM is that their repair methods and the facilities and controls used for servicing equipment are federally regulated.
OEMs methods used and the facilities and controls used for servicing equipment must comply with the federally regulated Quality System Regulations, which require that repair or refurbishment returns the instrument to the manufacturer's original specifications. In contrast, third-party sellers are not necessarily regulated and may only be returning a refurbished item to a reasonable approximation of the manufacturer's specifications.
"Third-party repair companies and resellers don't have access to new OEM parts," Mr. Doyle said. "The parts they use are copies or as close to a substitute as they can find. In some cases, parts are borrowed from other scopes acquired on the open market. As a buyer, you don't know whether you are getting the same quality, durability, fit and performance as you would get from OEM parts."
When Olympus prepares a CPO endoscope, every patient-contacting portion of the equipment is changed out. The original parts are removed and replaced with brand new OEM parts. In addition, from a cosmetic standpoint, the acceptable level of scratches and defects for Olympus CPO products is very low. "If a customer evaluates the quality of an Olympus CPO endoscope, it will look and perform like a new product," Mr. Hagen said.
When it comes to medical equipment like endoscopes, reprocessing validation is critical. Olympus follows a rigorous testing program for CPO endoscopes to validate equipment compatibility with specific reprocessing methods and agents, as well as the efficacy of those scope reprocessing methods. Olympus CPO products have already been validated by many automated endoscope reprocessors.
"Before buying a third-party pre-owned scope, ASCs should check with their automated endoscope reprocessor to ensure that the equipment can be reprocessed effectively," Mr. Singh said.
Mr. Doyle agreed, noting additional considerations. "Automated endoscope reprocessors validate their reprocessing hookups and methods with OEM scopes," he said. "The modifications that may exist in a third-party repaired scope may or may not lead to the same outcome as what was originally validated."
Olympus CPO endoscopy equipment can be a financially attractive alternative for ASCs, as well. The cost of CPO equipment compared to new equipment can help organizations meet their financial targets, while investing in capital equipment. "Although the cost savings will vary based on the size of the purchase and the combination of products purchased, it's not uncommon to see double-digit savings when buying CPO rather than new," Mr. Doyle said. "Economically, that's an important factor to consider."
Olympus® CPO endoscopy equipment warranty
The warranties provided by Olympus for CPO and new endoscopes purchased from Olympus are identical — both categories of products include a one-year warranty period from the invoice date.
"The warranty covers defects in parts and workmanship under normal use," Mr. Hagen said. "That applies to workmanship at the original Japanese factory that manufactured a new endoscope, as well as the workmanship at the repair center for CPO products." He added that the company's U.S. repair centers are located in San Jose, Calif. and Bartlett, Tenn.
Mr. Doyle noted how Olympus' confidence in the quality of the refurbishment process for CPO products enables the company to offer the same warranty provided for purchases of new inventory.
It's also important for ASCs to keep in mind that buying a CPO product doesn't mean they have to sacrifice access to technology and product advancements. It's frequently the case that Olympus CPO product offerings include the newest models.
"Oftentimes, we're able to offer new and CPO products side by side for a long period of time," Mr. Doyle said. "That allows ASCs to decide what's most important to them and access the appropriate tools for their clinical needs."
When ASCs buy CPO equipment from Olympus, they gain a partner
While price, durability and quality are key considerations when purchasing CPO equipment, post-sale support and service are also essential to have years of effective product use. "It's important for ASCs to ask whether the supplier provides service and repair options so equipment can be maintained in good working order," Mr. Doyle said. "This can provide confidence that ASCs can maximize their uptime."
In some cases, the origin of equipment purchased from third-party vendors can impact repairs. It is important to understand what is being purchased when working with a non-OEM company to purchase a product, so that you can avoid issues such as purchasing a product that could be stolen or a model that was obtained from a country outside of the U.S., as these models may be different from the model that received 510(k) clearance from the FDA in the U.S., which may result in future challenges for product repairs and service."
Olympus has a number of employees in the field, from service technicians to field engineers, clinical specialists and endoscopy support specialists who assist customers in the care, handling and reprocessing of products. Olympus' trained service technicians understand the latest product technology, as well as how to keep products in top working condition.
"At any location, there are likely Olympus field employees within a relatively short drive who can help keep an ASC up and running smoothly," Mr. Doyle said. "We are there to help organizations get access to ongoing professional training and other services."
Olympus service agreements are structured to maintain clinic uptime and protect equipment investments
Whether an ASC purchases new or CPO equipment, an Olympus service agreement is structured to provide clinic uptime, budget stability and satisfaction. "Procedural uptime is critical for ASCs that are performing high-volume procedures," Mr. Singh said. "A service contract can reduce repair turnaround times because organizations don't have to generate a purchase order or obtain approvals for every repair."
In addition, Olympus service contract customers have access to Olympus' extensive loaner pool of more than 5,000 units. Another benefit that comes with a customer having a service contract with Olympus is that Olympus’ endoscopy support specialists are available to contracted customers to help an ASC track repairs; provide on-site education on proper equipment reprocessing and care to reduce repairs; and offer tools to monitor and manage the service contract.
For customers who purchase a CPO endoscope, Olympus is currently offering a CPO Plus service promotion for specific scope models, which includes an 18-month service contract. "Customers can experience the quality and performance of a CPO scope, while being protected with an 18-month service contract that covers any necessary covered repairs." Mr. Singh said.
Olympus CPO equipment provides ASCs with the opportunity to save money without compromising product quality, warranty, training, education, or the ability to enter into an agreement for Olympus’ loaner programs and service agreements.
"There can be peace of mind knowing that the equipment parts, repairs and post-sales service offered by Olympus are consistent with what customers receive when buying new equipment" Mr. Doyle said. "When you buy CPO from Olympus, you get more than a product; you gain Olympus as a partner."
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