Capital equipment decisions represent significant financial commitments for diagnostic imaging departments and healthcare facilities. Considering a total cost of ownership (TCO) analysis that extends beyond the initial purchase price is essential for planning a financial and operational strategy. Our team has determined what impacts your systems' return on investment the most when buying new versus refurbished CT and MRI equipment. Learn what variables affect long-term costs and how to integrate a TCO Analysis into your capital planning before you purchase your CT and MRI equipment.

 

What Factors Go Into The Purchase Price Of A CT or MRI Machine?

When it comes to equipment purchasing decisions, most evaluate based on acquisition cost alone. This approach significantly underestimates the true financial and operational impact on your healthcare facility.

The main factors that define the total cost of ownership of a CT or MRI machine include:

  • Initial capital expenditure
  • Warranty and service contract costs
  • Scheduled maintenance and preventive care
  • Unplanned repairs and component replacement
  • Operational costs (cryogen, supplies, power)
  • Lost revenue during downtime
  • Software support and updates

 

What Is The Difference Between New and Re:newed Imaging Equipment?

Before you compare the quoted prices of each system, it is important to understand how new and refurbished equipment differ in capability, support, advantages and drawbacks of each.

Advantages of new diagnostic imaging equipment:

  • Current-generation technology and software architecture: New systems incorporate the latest manufacturer innovations in image processing algorithms, reconstruction methods, and DICOM standards. These systems are optimized for current and near-term clinical protocols.
  • Documented equipment history: New systems have no prior use history, eliminating uncertainty regarding past maintenance, repairs, or component replacements. This reduces the risk profile of the acquisition.
  • Financing and accounting treatment: New equipment purchases often qualify for accelerated depreciation schedules, equipment financing programs, and tax incentives that may improve the overall financial structure of the acquisition compared to used equipment.

Advantages of re:newed refurbished imaging equipment:

  • Refurbished diagnostic imaging systems are typically 5-10 years old, representing the prior 1-2 generations of manufacturer models when refurbished to original equipment manufacturer (OEM) specifications.
  • Mature, clinically validated technology: Previous-generation systems have extensive clinical deployment history. Reliability patterns are well-established, software bugs have been identified and corrected, and there are extensive clinical hours of performance data.
  • Significant capital cost reduction: Refurbished systems typically cost 40-60% less than new equivalent models. These capital savings can be redirected toward clinical staffing, technology infrastructure, or additional diagnostic capabilities.
  • Extended warranty and vendor support options. Leading refurbishment vendors offer 10-year warranty terms on refurbished equipment refurbished to OEM specifications, backed by ISO 13485 quality management systems. This extended coverage shifts equipment risk from the organization to the vendor and provides warranty protection through years when repair costs typically increase for aging systems.
  • Environmental and sustainability considerations: Refurbished equipment extends the clinical lifespan of diagnostic systems, reducing electronic waste and supporting organizational sustainability objectives.

 

CT Equipment: A Five-Year Total Cost of Ownership Analysis

We estimated a five-year total cost calculation for those who are considering purchasing a new or refurbished CT system. This estimate is for a mid-size imaging center with the current CT utilization of approximately 25 cases per day. Below are our comparisons when evaluating new versus refurbished CT purchasing options.

New CT System:

  • Initial purchase: $650,000 (midpoint)
  • Service/warranty years 1-3: $30,000 x 3 = $90,000
  • Service years 4-5: $35,000 x 2 = $70,000
  • Post-warranty repairs: $15,000-$25,000
  • Software support years 4-5: $5,000 x 2 = $10,000
  • Five-year TCO: $835,000-$855,000

Refurbished CT System (with 10-year extended warranty):

  • Initial purchase: $325,000 (midpoint)
  • Service/warranty years 1-5: $12,500 x 5 = $62,500
  • Repairs (covered under extended warranty): $2,000-$5,000
  • Software support: $0-$2,500
  • Five-year TCO: $391,500-$394,500

The refurbished CT system generates a five-year cost differential of $441,000-$463,500 compared to new equipment. This represents a 52-55% reduction in total cost of ownership over the evaluation period.

Operational Considerations

  • Uptime and Reliability: New CT systems typically achieve 97-99% uptime under standard maintenance protocols. Refurbished systems with comprehensive preventive maintenance programs and extended warranty support achieve 94-98% uptime. The 1-3% difference translates to approximately 3-11 additional days of downtime per year, most of which can be scheduled around routine maintenance windows rather than occurring as unexpected failures.
  • Service Response Times: With new equipment, manufacturer service response is typically 24 hours. Refurbished equipment from vendors with in-house biomedical engineering capacity and field service teams can match these response times. Response time are typically defined in the service agreements upon purchase.
  • Clinical Capability Considerations: For facilities requiring advanced imaging protocols (cardiac CT, dual-energy CT, or specialized reconstruction techniques), newer systems may be necessary. For routine diagnostic CT scanning, previous-generation systems deliver clinically equivalent image quality and diagnostic capability.

 

MRI Equipment - Five-Year Total Cost of Ownership Analysis

Our five-year total cost calculation for mid-sized MRI imaging centers with the utilization of approximately 6-8 cases per day. The cost category breakdown of this MRI financial analysis differs from our CT calculations due to the higher baseline capital costs, greater complexity of ongoing operational expenses, and extended equipment lifespan of MRI equipment. Below are our comparisons when evaluating new versus refurbished MRI purchasing options.

New MRI System:

  • Initial purchase: $1,400,000 (midpoint)
  • Service/warranty years 1-3: $52,500 x 3 = $157,500
  • Service years 4-5: $57,500 x 2 = $115,000
  • Cryogenic maintenance: $20,000 x 5 = $100,000
  • Unplanned repairs: $30,000-$50,000
  • Five-year TCO: $1,802,500-$1,822,500

Refurbished MRI System (with 10-year extended warranty):

  • Initial purchase: $600,000 (midpoint)
  • Service/warranty years 1-5: $20,000 x 5 = $100,000
  • Cryogenic maintenance: $16,000 x 5 = $80,000
  • Repairs (majority covered under extended warranty): $5,000-$15,000
  • Five-year TCO: $805,000-$815,000

The refurbished MRI system provides a five-year cost differential of $987,500-$1,017,500 compared when purchasing new equipment. This represents a 54-56% reduction in total cost of ownership over the evaluation period. The cost savings reflect MRI's higher baseline capital cost; the percentage savings are comparable to CT, but the TCO value is substantially larger, providing greater financial flexibility for organizations with constrained capital budgets.

Operational Considerations

  • Equipment Lifespan and Reliability: MRI systems have the longest operational lifespan of any diagnostic imaging modality when properly maintained. Well-maintained MRI systems can operate clinically for about 12-15 years. A refurbished system at 8-10 years of age has substantial remaining clinical life remaining.
  • Uptime Expectations: New MRI systems achieve 97-99% uptime. Refurbished MRI systems under comprehensive preventive maintenance achieve 94-97% uptime. The reliability difference is minimal and typically reflects the component aging in refrigeration and cryogenic systems, which can be addressed through proactive maintenance scheduling.
  • Cryogenic System Considerations: Helium cooled systems (the predominant MRI architecture) require periodic seal maintenance, compressor servicing, and cryogenic refills. Older systems may require more frequent attention to cooling system components, but this does not affect image quality or diagnostic capability. Preventive maintenance programs are essential for both new and refurbished systems.
  • Clinical Capability: MRI imaging protocols and sequence capabilities evolve more slowly than CT technology. A refurbished MRI system from 8-10 years ago delivers clinically equivalent diagnostic imaging in most applications. Advanced sequences developed in the past 5 years may not be available on older hardware, but these represent specialized research applications rather than core clinical capability.

 

How To Choose A Refurbished Imaging Vendor

The financial advantages of purchasing refurbished imaging equipment depend upon the quality of the refurbishment capabilities of the vendor. The Probo team is serious about our commitment to outfit the industry with the best medical imaging resources possible. Part of that promise includes getting the longest life out of premium equipment. That’s why we developed re:new.

  • Unmatched Expertise: Our engineers are highly educated and are trained to meticulously refurbish systems and components, restoring them to like-new standards for both appearance and functionality.
  • Tailor-Made Solutions: We customize every system to meet your unique operational requirements, from the inside components to outside hardware, ensuring you always receive a perfect fit for your facility’s needs.
  • Comprehensive Process: Our multi-step refurbishment includes full disassembly, cleaning, part replacement, updates, and rigorous diagnostic testing, ensuring each unit meets or exceeds original specifications.
  • Certified Quality & Support: Refurbished in our ISO 13485-certified facility, each system undergoes strict quality control and comes with industry-standard warranties, providing long-term reliability and peace of mind.

Learn more about how each carefully selected CT and MRI machine is put through a rigorous refurbishment process by the most experienced engineers in the industry. View our Probo Re:new refurbishing process here!