Medical Device acquisition

1. The Johns Hopkins Hospital International Seminar Medical Device Acquisition May 15, 2003

10. Reallocation of Assets Capital Group Database Request Hospital A Hospital B Hospital C

12. Total Cost of Ownership: What a radiology asset really costs... 23% Original Asset Cost 77% Asset Life Costs

18. Technology Change Rate Index PACS Cardiac Cath Angiography CT Radiographic MRI Mammography R & F Digital Nuclear Medicine Portable Units $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 Rate of Change Original Equipment Cost 0 1 2 3 4 5 6 Which technology is changing the most? Where is the greatest risk of obsolescence? Ultrasound, Cardiac Ultrasound, General Low Risk Moderate Risk High Risk Minimal Change Rapid Change

19. LIFE CYCLE MANAGEMENT Year Year Year N-0 N-3 N-1 N-2 N-4 Leading Edge Competitive Edge Functional Edge Trailing Edge Obsolescence Edge 3 5 7 Upgrade Refresh (High Operational Cost) A Technology Management Solution

24. Universal Customer Concerns High-Tech Equipment Acquisition Technical obsolescence cause for concern Hardware requirements constantly changing Hardware requirements dramatically increasing budget constraints Major input coming from manufacturer * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

29. Case Study IV Pump Acquisition