Medical Equipment Warranties & How To Use Them To Your Advantage

No one wants a device that breaks down unexpectedly after only a year into ownership. Just to be clear, I’m not referring to breakdowns caused by user error, rather the breakdowns I am focusing on are from manufacturing defects or when low quality internal parts begin to fail. Many purchasers assume that if a device fails within its warranty period, the repair costs will be fully covered by the manufacturer. In many cases, this is true; however, it is important to understand exactly what the warranty covers, how long coverage lasts, and what happens once the warranty period expires.

Most medical equipment warranties are limited to a specific timeframe, often covering manufacturing defects during the initial ownership period. After the warranty expires, repair costs, replacement parts, and service expenses typically become the responsibility of the equipment owner. Understanding warranty terms before purchasing medical equipment can help organizations make informed decisions, plan for future costs, and reduce the risk of unexpected expenses. Below are some recommendations to help you get the most value from your equipment warranty.

1. Read the fine print of the warranty

Before signing on the dotted line, make sure you have a strong understanding of what is actually covered in the warranty and for how long. Sometimes there are exceptions written in the fine print excluding certain failures from being covered. Typical exceptions include exterior casing defects and LCD screens as these types of faults could be argued to be user error failures caused by harsh chemicals used during cleaning.

If at any time during your due diligence process you develop concerns on the way the warranty is written, reach out to your sales rep and ask for clarification. Some good questions to ask your rep are: "What have been the most common warranty claims against the device since being on the market?" and "What have been the most common parts that have failed after the warranty has expired?" By asking these questions, you will gain insight into the potential problems you may face down the road.

2. Inquire about extended parts & labour warranty

We are a big fan of extended parts and labour warranties, especially for high use and high cost of medical equipment. The devices that falls in this category would be anaesthesia machines, ventilators, diagnostic ultrasound, endoscopes, etc. When this type of equipment requires repair, costs can be significant. For example, a replacement ventilator LCD screen can cost approximately $5,000, creating an unexpected financial burden if these expenses were not anticipated during the budgeting process.

Also, depending where your hospital/clinic is located, you may not have a specialized service technician in your area. Therefore, you would most likely have to pay the travel expenses for a technician to travel to your area which adds to the cost of the repair. By budgeting and negotiating an extended parts & labour warranty during the initial procurement phase, you will have peace of mind knowing that if something breaks down, you will be covered and will not have to pay for it out of pocket.

3. Understand the warranty conditions

To submit a warranty claim, manufacturers don't make it easy for you. Oftentimes, the manufacturers stipulate strict conditions in order for the warranty claim to be processed. At a first glance, you might think the warranty claim conditions are fair, but when the time comes to submit your claim, you realize it is quite time consuming and places a burden on your organization. To help you be more prepared and to help you understand the warranty claim conditions, we have provided a list questions to ask using the three most common warranty claim conditions as an example.

Service Location and Repair Requirements

Situations when the device must be sent to the manufacturer or manufacturer approved third party service deport.

Questions to ask:

• Where is the manufacturing or service depot located?
• Are there any approved manufacturer service depots in my area?
• It's a simple repair, can you send us the part and allow our local medical equipment service company to complete the warranty repair?

Shipping Responsibilities and Logistics

The equipment owner may be responsible for shipping costs and any damage that occurs during transportation.

Questions to ask:

• It's very expensive and logistically challenging to ship from our small town, therefore, can we use our local medical equipment service company to complete the warranty repair?
• Your manufacturer service depot is located in a different country, is there an approved service depot in my country?

Service Queue and Equipment Downtime

Some device need to be put in queue for service and you will be notified once the service has been completed.

Questions to ask:

• This is our only device and we don't have a spare, is there a loaner device you can send us at no charge?
• How do we know the service won't take 6 months to complete? In the event of warranty, could we have a repair ETA on paper?

Negotiating the Right Warranty Coverage

Warranties can be a great investment and a valuable way to protect your medical equipment purchase. When you are going through the sales process, don’t be afraid to ask questions and discuss your options. Many warranty terms, service options, and coverage details can be negotiated, and all you have to do is ask for what you want. Taking the time to explore what is available can help you find the right balance between cost, coverage, and peace of mind.