Impact of the stimulus package upon the medical supply resale market

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刺激包裹的冲击在医疗物资转售销路

Paul Keough, TurnKeough | September 23, 2009

Suppliers of medical products will enjoy an expanding customer base for the foreseeable future. Along with recognizing the demographics and the motivation to support life, the stimulus package will further impact this growth. Perhaps not fast enough, though, as some critics of the package maintain. A study, conducted by researchers, sponsored by electronic communications services provider IVANS Inc., found that more than half of providers believe that the billions of dollars set aside to promote health IT adoption will have little impact on that process. The biggest obstacle to adoption was "lack of budget," cited by 82%.

Providers, to adjust and position themselves for the growth, will find that the fiscally responsible decision might only afford the acquisition of used equipment. Will used equipment be available? Fiscal responsibility is not just limited to small practices. Large providers are certainly keeping it in
mind as well. In order to alleviate the pressure to purchase and acquisition the

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newest, latest, and greatest equipment, finding the space and the money will require the sale of their old equipment.

The ARRA, in accordance with Tax Code Section 179, can strengthen buying power of new equipment bought in 2009. This could make 2009 an attractive year for facilities to purchase equipment. This brings us from the medical supply industry, where the sale of new equipment by suppliers to facilities means providers will be more likely to resell equipment. Here's where the VARs may observe an increased volume of resold equipment.

Voila! The supply and demand chain is established: large vendors receive grants and market new equipment, providers buy new equipment to meet new standards and then sell old equipment and finally, resellers see an increased volume in resale of old equipment.

Paul Keough, PhD, MBA is the President of Turnkeough Corporation (www.turnkeough.com).You can reach him at paul.keough@turnkeough.com.

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