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My report on the⁠ IAMERS European Meeting

by Philip F. Jacobus, CEO | September 21, 2016

Some may argue that certain OEM practices are monopolistic or a violation of anti-trust regulation but to me, alternative providers are like our National Guard in the United States. The National Guard holds things together in a crisis. They mobilize more quickly and do what our United States Army is not capable of doing.

IAMERS is encouraging their members to become ISO certified and to develop best practices standards. I think IAMERS is a positive force in the industry and the organization is making an effort to show its members — and by example show other firms — how to conduct business in a professional and careful way.

In an environment where governments around the world are restricting alternative service providers and even the U.S. FDA is examining how alternative service providers fit into the big pictures, IAMERS, I believe, can lead the way and give alternative service providers the tools they need to remain relevant in the future.

As for Joe Shrawder... I did not get Joe's latest business card but I believe that he is in charge of medical equipment service worldwide for General Electric. I have known Joe for a few years and I think he is a very smart guy. I always enjoy listening to him speak.

Some of you may know that GE has decided, going forward, that all optional software on diagnostic imaging equipment will be licensed only to the original purchaser. The basic operating software will travel with the machine in the same way that Microsoft Windows travels with a used computer when it is sold. However, in the same way that some of the software is licensed only to me, GE will not allow optional software to be reused when a piece of used diagnostic imaging equipment is sold.

A new customer will have to pay a fee in order to re-license the optional software.

If any one wants to buy an used GE MRI scanner and we sell it in the marketplace, this new policy under GE changes the value proposition for the end user/purchaser.

I am on record as saying that long term, I do not think this is going to be a problem. I believe used equipment will sell for less money if the software is not included and the lower price will allow for more money to be used to buy the optional software.

A lot of people are worried because they believe that the optional software will be too expensive but I suspect the prices will equalize.

I also believe that MRI and CT prices are going to drop dramatically and it might end up being a better business deal to buy a brand new machine than an used machine.

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About Phil Jacobus

Phil Jacobus has been involved in health care since 1977, when he visited China to sell equipment. He has done business in 35 countries and still travels extensively. Phil is active in charity, helps rural clinics and always tries to help DOTmed users when he can.

Phil is a member of AHRA, HFMA, AAMI and the Cryogenic Society of America. He has contributed to a number of magazines and journals and has addressed trade groups.

Phil's proudest achievement is that he has been happily married to his wife Barbara since 1989, who helped him found DOTmed in 1998.

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