Repair Exchange Program
With an older piece of equipment, sometimes the cost of repairing it may be greater than 75-100% of the value of the equipment. In this case it may make sense to consider a repair exchange. Usually it makes sense to also try to upgrade your technology at this time, instead of investing dollars into an older piece that is nearing the end of it’s useful life.
Example: ABC Hospital has a very old colonoscope that has been working fine until now. The insertion tube has failed and the scope needs to be refurbished. The cost to do this repair is approximately 100% of the value of the scope after it has been repaired. In this instance 3 West Medical makes a recommendation that instead of investing that money in repairing a very old asset, ABC Hospital should do a repair exchange for a completely reconditioned colonoscope that is the next generation beyond their current technology. The old scope still has some value that ABC Hospital will receive in credit towards the new scope. The new scope costs a few dollars more than repairing the old scope, but now they are getting a completely reconditioned colonoscope that has newer technology with a 1 year warranty and is a more current asset that has greater value.
If you would like to discuss this with us, feel free to contact us.