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MR service contracts: choosing the appropriate coverage

November 20, 2014
From the October 2014 issue of HealthCare Business News magazine

Intraoperative MRs offer capabilities for surgical planning and navigation, such as image-guided surgery applications. Because of this, these contracts typically have the highest associated service pricing due to the different components and software utilized. The other MRs are systems dedicated to breast or orthopedic applications as well as those for extremities only which tend to be at the lower end of the pricing spectrum.

Cryogen
Typically, cryogen contract costs are generally non-negotiable and are dependent on the distance from the cryogen terminal to the site. Traditionally, refills occurred once a year with helium and nitrogen but within the last 10 years, MR systems moved to using only helium and have longer periods of time between refills (most up to five years). Budgeting for cryogen service should be expected between $22,000 to $28,000 per year. MR coils Coils depend on MR applications and vary in cost. Coverage for coils should be included in the OEM service contracts, but any coils ordered after the point-of-sale need to be added to the existing service contract. Always ensure that provisions are made within the service contract for a loaner coil until the original coil is repaired. Third-party coils are also available, but coverage for these are at an additional cost through the third-party vendor.

Chiller
The chiller is required for MR operation, working with the coldhead compressor and coldhead to keep the helium cold and at a specific temperature for optimal product utilization. These are usually a third-party item, as MR vendors typically partner with a specific chiller vendor. When purchased, the chiller is typically list price with no discounting and can add $10,000 per year to the service contract. Most of the “older” chillers are under contract for $15,000 per year. Newer systems are under contract for $7,500 - $10,000. MD Buyline’s database shows that the vast majority of quotes received and evaluated include the third-party chiller from the MR vendor. Very few quotes exclude the chiller, and there are very small numbers of facilities that opt to use their own chilled water system for their MRs.

MD Buyline finds that most issues that occur with the MR are related to the chiller, so proper service and maintenance for chillers are key. Scheduled PMs should be four times a year, at minimum, for the chiller. Magnet maintenance should always include the coldhead chiller, Helium UHF coverage and magnet refrigeration service and should all be covered during these quarterly PMs. Also included in the contract is full inspection, adjusting, tuning and replacement of non-consumable parts (contract dependent).

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