The real cost of a short-term mindset
Service agreements for medical technology are often treated as an afterthought, which significantly underestimates their true value. These agreements are important for ensuring operational continuity, protecting valuable assets, and enhancing financial performance. When utilized effectively, service agreements can become a strategic lever that strengthens healthcare delivery at every level.
Ignoring the importance of service agreements can lead to a range of issues, including unexpected equipment failures, increased downtime, and higher long-term costs. Without proper maintenance and support, medical devices may not perform optimally, potentially compromising patient experience. The lack of structured service agreements can result in inefficient use of resources, potentially leading healthcare organizations to face frequent and costly repairs or replacements.
By prioritizing robust service agreements, healthcare organizations can help safeguard their investments in medical technology. These agreements provide a framework for regular maintenance, timely updates, and proactive problem-solving, helping ensure that equipment remains in peak condition. Additionally, service agreements often include access to expert support and advanced diagnostics, which can help identify and address issues before they escalate.
Ultimately, adopting a long-term perspective on service agreements helps to allow healthcare providers to maximize the lifecycle of their assets, reduce operational disruptions, and improve overall efficiency. This strategic approach not only helps enhance the reliability and performance of medical technology but can also help contribute to improved patient experiences and a stronger financial position for the organization.
Leveraging OEM expertise
Utilizing Original Equipment Manufacturer (OEM) services in your agreements can help enhance the value of your medical technology. OEMs provide specialized knowledge and support that optimize equipment performance and longevity. By incorporating OEM services into their service agreements, healthcare organizations can help ensure they receive high- quality support tailored to their specific equipment needs.
Extending the value of capital equipment
Medical technology carries significant upfront investment. Most of its cost accumulates after installation, with a majority of total ownership costs being realized during the operational life of the equipment. When a service agreement is designed to manage the long-term value of the asset, it can extend both performance and lifespan.
Preventive maintenance helps reduce the risk of sudden failure. Software updates help maintain compliance and clinical functionality. Remote diagnostics helps enable fast resolution of issues, often without needing on-site intervention. In many healthcare systems, large imaging equipment such as MRI or CT scanners are used intensively, supporting multiple departments and dozens of clinical teams.
If a machine goes offline, the effect can be immediate. Elective procedures may need to be rescheduled, emergency diagnostics can be delayed, and staff may be diverted to manage the fallout. These disruptions can cost more than just service call fees; they may affect the patient experience, clinical efficiency, and institutional reputation. By embedding performance monitoring and strategic maintenance into the service plan, healthcare organizations can help reduce unplanned outages and shift their operational mindset. This not only helps preserve the asset but also helps organizations to allocate their capital with confidence. Lifecycle-based agreements align support with real-world use, helping to ensuring that systems receive what they need when they need it.
From break/fix to predictive performance
Traditional break/fix models follow a linear response: wait for a failure, then schedule a repair. While this may offer short-term savings on service coverage, it can often result in unpredictable costs, unnecessary downtime, and disruption to care workflows. Predictive maintenance moves the conversation forward. By using artificial intelligence and real-time data analytics, systems can monitor internal functions and flag deviations that may signal a developing issue.
Technologies like GE HealthCare’s OnWatch Predict™ and Tube Watch exemplify this shift. These tools track variables such as temperature, signal stability, and hardware performance. When a deviation is detected, a notification is sent to the service team, allowing for preemptive action. This model is already delivering results. This can translate into fewer patient reschedules, greater technician confidence, and smoother departmental operations.
Healthcare environments are becoming more dynamic, with fluctuating demand and increasingly sophisticated equipment. In this landscape, preventive insight is more valuable than reactive speed. Organizations that integrate predictive tools into their service agreements can not only reduce their exposure to downtime but can also gain a structural advantage in how care is delivered.
Scalable models for evolving needs
One of the most important features of a high-performing service agreement is adaptability. Healthcare providers operate at different scales, with diverse care models, budget structures, and technical staffing profiles. A one-size-fits-all approach rarely delivers lasting value.
GE HealthCare Service Solutions addresses this variability through a tiered service model.
For institutions with internal service teams, the Unite and Unite Plus agreements offer a collaborative structure. These models provide access to OEM-level support, discounted parts, remote diagnostics, and training resources, allowing in-house teams to retain control while gaining expert reinforcement.
Scalability is not just about having more or less coverage; it is about ensuring the right fit. By aligning the agreement with the specific operating conditions of each site or department, organizations can optimize both cost and performance. This also makes it easier to scale or modify service plans over time as the clinical landscape shifts.
Visibility as a core benefit
The ability to see across the entire asset base in real time is fundamental to making informed operational decisions. Service agreements are increasingly integrating analytics platforms that deliver this level of visibility. With tools like Encompass™ and MyGEHealthCare, healthcare leaders can track asset utilization, monitor maintenance history, and benchmark equipment performance across facilities.
This data is actionable. It helps enable better capital forecasting, reveals potential opportunities for equipment redistribution, and helps support compliance audits with documented service records. Visibility also changes the conversation at the executive level. Instead of relying on assumptions or isolated reports, decision-makers can access system-wide data that reflects the actual state of their fleet. This supports smarter investments, improved lifecycle planning, and a more strategic approach to both replacement and reinvestment.
When service agreements include access to these tools, they shift from static contracts to dynamic intelligence platforms. This is not simply about keeping machines running; it is about running the entire operation more effectively.
Digital ready service infrastructure
As healthcare becomes increasingly digitized, service must extend beyond hardware to protect the integrity of digital systems. Imaging platforms, monitoring equipment, and software-driven diagnostic tools are all part of an interconnected clinical ecosystem. If one node fails, the effects can cascade.
Modern service agreements need to reflect this complexity. Cybersecurity protections such as Skeye™ can be a key tool for guarding against external threats. Regular software updates help maintain interoperability and compliance. Technical support that understands the full technology stack is crucial for rapid issue resolution. Digital readiness is a key requirement for health systems that rely on secure data flow, remote access, and seamless integration.
Service plans that account for these needs become part of the digital infrastructure, helping to ensure that platforms stay current, protected, and responsive. This level of preparedness helps allow health systems to adopt new technologies without adding risk. It also helps ensure that existing systems remain aligned with evolving standards, so that performance keeps pace with clinical innovation.
Reframing the agreement conversation
The question is no longer whether a service agreement is important. The question is what kind of agreement will help advance the organization’s objectives. Renewal cycles offer a natural inflection point for this discussion. Instead of defaulting to previous terms, organizations can assess whether the agreement supports current usage patterns, digital maturity, and clinical demand.
Is predictive maintenance part of the plan? Is asset data accessible? Does the agreement scale with future growth? Evaluating service contracts through this lens helps ensure they remain aligned with broader strategic goals. It also signals to stakeholders that the organization is managing its assets intentionally, with attention to risk, efficiency, and long-term value. Well-designed agreements do more than help keep equipment operational; they help enable performance.
Service that sustains performance
Healthcare systems operate in a complex, high-stakes environment where equipment reliability is paramount, downtime must be minimized, and capital must be allocated with precision. In this context, service agreements transcend their role as mere operational tools; they can become strategic instruments. When approached with a long-term perspective, service agreements can be integral to performance management. They can help safeguard investments, sustain clinical excellence, and drive operational clarity across the organization.
By embedding comprehensive service agreements into their operational strategy, healthcare organizations can help ensure that their medical technology remains in optimal condition, thereby helping to reduce the risk of unexpected failures and costly disruptions. These agreements provide a structured approach to maintenance and support, helping to enable healthcare providers to focus on delivering high-quality patient care without the constant worry of equipment malfunctions.
As the healthcare landscape continues to evolve, rethinking and reprioritizing service agreements can help healthcare providers to better position themselves to deliver consistent care, manage their assets wisely, and meet the demands of tomorrow with confidence. Embracing a proactive and strategic approach to service can not only enhance the reliability and performance of medical technology but can also contributes to the overall resilience and efficiency of healthcare systems.
