Spain's Medical Imaging Industry: Vendor-Customer Partnerships Crucial to Unlock New Business Models
Non-conventional service models find opportunities amidst a deepening public-private healthcare divide, finds Frost & Sullivan's Transformational Health team
LONDON, March 9, 2017 /PRNewswire/ -- The last few years' slow economic growth, declining public healthcare spending, and limited access to capital funding have compelled Spanish hospitals to adopt new purchasing and service models for imaging equipment investments. As the economy recovers, the drive to operationalize capital, service costs and added-value services favors non-conventional business models over traditional capital-intensive purchasing and service models. Equipment vendors and multi-vendor service providers are polishing their solutions and value proposition to provide long-term, partner-based service models including a commitment to customer outcomes, increasingly as a shared-risk element.
"To address the technology obsolescence issue in the installed bases and the high pricing pressure in Spain, the different Autonomous Communities are looking beyond public-private partnerships (PPP) and private finance initiatives (PFI) for potentially adequate models for capital technology purchases, such as in imaging," stated Transformational Health Research Analyst Srikanth Kompalli.
Spain's New Business Models in Medical Imaging, Forecast to 2020, a new research study from Frost & Sullivan's Advanced Medical Technologies program, finds that the Spanish managed equipment services (MES) and multi-vendor services (MVS) market for computed tomography and magnetic resonance imaging equipment was estimated to be $21.5 million in 2015. It is expected to grow at a compound annual growth rate (CAGR) of 7.6 percent from 2015 to 2020.
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Since 2008, Spain has endured one of the worst economic crises in its modern history. This has imposed considerable constraints on the country's ability to make significant new investments in its healthcare infrastructure to meet the quality expectations of the Spanish public and renew its aging capital imaging equipment fleet.
However, due to a somewhat progressive mindset in Spanish policy-making, there are many encouraging signs that make Spain a hotspot for business model innovation in medical imaging. Growth opportunities and key trends include:
- Vendor-customer engagement over 10 to 15 years includes a broad range of value-adding services such as in-time renewal and procurement of new equipment.
- The development of a two-tiered, two-speed system has increased demand and adoption of new collaborations and business models among both public- and private-based imaging providers.
- In 2009 and 2010, a series of 10-year and 15-year contracts with large public hospital organizations entered into effect. The contracts were formed by each of the three leading original equipment manufacturers, namely GE Healthcare, Siemens Healthineers, and Philips Healthcare.
- In 2015, two new contracts were won by Philips Healthcare with Regional Healthcare Service of the Region (SERGAS) in Galicia, which includes a large computed tomography (CT) and magnetic resonance (MR) component, and with Campus de la Salud Hospital in Granada, Andalusia in 2015.
- Outsourcing agreements to the private sector ("conciertos") in 2013 accounted for almost 11.6 percent of total public spending. Through an indirect chain effect, these outsourcing models also tend to promote the outsourcing of operational services to industry vendors.
- Equipment renewals in CT scanning are becoming urgent due to regulatory mandates such as dose reduction mandates by the European Commission and other entities.
"There is strong appeal and appetite for value-adding services in the public setting due to various provider attributes such as a limited capacity, long patient waitlists, and limited access to capital," notes Kompalli. "Spanish imaging providers seem more open than many of their European counterparts to explore new ways of engaging with their vendors," he adds.
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Spain's New Business Models in Medical Imaging, Forecast to 2020
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