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Friday, July 10, 2015

3 Great Ways to Save When Buying Linear Accelerator Equipment & Service

As you probably know, linear accelerators are great technology for radiation treatment of certain cancers. Almost every hospital has a linear accelerator, and the latest and greatest systems are used as prominent recruiting vehicles for patients and physicians alike.  

As you also probably know, linear accelerators come with a hefty price tag. New linear accelerators cost over $4 million and service contracts can cost upwards of $300,000 annually for a single system. Because of its price, however, manufacturers are actually becoming more willing to help hospitals find ways to afford their technology...as long as you know where and for what to ask...

Here are 3 great ways to lower your linear accelerator costs:   

1. More Flexibility on Service Contract Pricing - Service contract costs for linear accelerators have been a tremendous financial burden for hospitals. Recently, however, independent service organizations (ISO's) are gaining credibility in the market and have become a more viable option and cost less (up to 50% savings) than OEM service. In fact, the presence of a competitive ISO quote allowed one of our clients to reduce a 5-year service contract by $750,000, or 30% of its original quoted price. 

2. Training, Education, Installation and More Quickly Add Up
– Linear accelerator quotes are filled with many smaller costs, including installation, training, education, etc., that can quickly add up. All of these costs can be negotiated, so make sure to ask for line-item details when evaluating a purchase. Manufacturer reps have been known to remove those costs from the overall deal when pressed for additional savings opportunities. 

3. Watch Out for a Changing Market Landscape - There are many competitive brands in the linear accelerator market, including Varian, Elekta and Accuray. And more options in the market should ultimately bring prices down. Be sure to ask for competitor quotes from all Suppliers before committing to one. It will help provide competitive leverage when participating in any negotiation.


Hopefully these three insights will help you and your hospital lower your linear accelerator costs. 

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