US Diagnostic Imaging Marketrack Project Introduction Presentation Company Confidential

US Diagnostic Imaging Marketrack

Project Introduction Presentation

Company Confidential

Table of Contents

• Background• Introduction & Methodology

• Sample 2Q 2008 Results• About Millennium Research Group• About Marketrack

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3

Project Background

Background

• Many imaging equipment manufacturers currently access good retrospective market data from a variety of sources, such as NEMA, but do not have the sources necessary to develop a forward-looking models and provide insights into large capital equipment purchases

• MRG has developed a study which will track relevant quantitative and qualitative data points across US hospitals and diagnostic imaging centers (DIC’s) on an ongoing basis to become a leading database for hospital capital equipment purchases accessible to MRG’s clients


Introduction & Objectives

• The primary purpose of this study is to:• Evaluate the attitudes of radiology departments toward current and

future economic and legislative trends• Capture information on future equipment purchases on an ongoing

basis

• This data will aid MRG’s clients in projecting imaging equipment purchases in US hospitals and DICs

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Project IntroductionCompany Confidential

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Methodology

• Each research period (quarter), MRG will conduct upwards of 150 interviews

• Responses will be gathered from hospitals & DICs• Respondents will include:

• Directors and Managers• Executives• Managers, Materials/Purchasing Managers, etc

• In order to participate in the study, respondents must meet the following criteria :• Be involved in purchasing decisions• Be familiar with hospital financial status, reimbursement issues, and imaging

budget(s)

Methodology (1)Company Confidential

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• Quarterly Survey Collection• MRG will sample a stratified mix of hospitals and DICs every quarter based on

• Geography• Bed size (Large, Medium, and Small hospitals)

• Other hospital demographic information

• Each quarter, a unique group of facilities/respondents will be surveyed, with the following approximate respondent stratification:

Methodology (2)

Criteria% of Respondent

SampleRegion Mid West 26%

North East 15%South 40%West 19%Total 100%

Hospital Size Small (<125 beds) 30%Medium (125 to 250 beds) 35%Large (>250 beds) 35%Total 100%

Facility Hospital 65%Diagnostic Imaging Center** 35%Total 100%

Respondent C-Level (CEO, CFO, COO, etc) 7 to 20%Other (i.e. Director of Imaging/Rad) 75 to 93%Total 100%


**Diagnostic Imaging Centres targeted will have 20 or more employees.

Table of Contents

• Background• Introduction & Methodology• Sample 2Q 2008 Results• About Millennium Research Group• About Marketrack

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Summary

• 153 interviews were completed between April and June of 2008• Respondents included:

• 48 Diagnostic Imaging Centers

• 15 Executives

• 33 Directors and Managers

• 105 Hospitals

• 5 Executives

• 61 Directors

• 39 Managers, Materials/Purchasing Managers, etc.

2Q 2008 Sample Results

Large Medium Small DICUS Mid West 7.8% 4.6% 9.8% 11.1% 33.3%US North East 4.6% 2.6% 4.6% 3.3% 15.0%US South 5.2% 5.2% 8.5% 7.8% 26.8%US West 9.2% 1.3% 5.2% 9.2% 24.8%

26.8% 13.7% 28.1% 31.4% 100.0%

Geographic Breakdown, Segmented by Facility Size (as a % of Total)


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Key Findings – Financial Health


• Despite legislative measures that have decreased imaging reimbursement, most respondents indicated that their facility’s financial health was the “Same” or “Better Than” last year/last quarter

• Similarly, more respondents expected imaging budgets to “Increase” rather than “Decrease” over the next quarter/year


Hospital DIC Overall

Better than

Same

Worse than

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Key Findings – Factors Affecting Financial Health

• Reimbursement rates were most often cited as a factor that affected a facility’s financial health over the last quarter and/or last year


Positive Factors Affecting Financial Health Q/Q

Reason A Reason B Reason C Reason D Reason E

Reason for Better Financial Health

% o

f Res

pond

ents

Reason A Reason B Reason C Reason D Reason E

Reason for Worse Financial Health

% o

f Res

pond

ents

Negative Factors Affecting Financial Health Q/Q


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Key Findings – Factors Affecting Future Financial Health

• Declining reimbursement rates will continue to squeeze imaging budgets over the next year, but possibly to a slightly lesser degree than over the next quarter

• Over the coming year, imaging budgets will increase largely due to the need for new equipment as a result of aging current units


Driver A Driver B Driver C Driver D

Factor

% o

f Res

pond

ents

Factors Affecting Imaging Budget Over the Next Year


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Key Findings – Future Equipment Purchasing

• Respondents provided information on quantity of imaging equipment to be purchased, information on preferred vendors, and time frame for equipment purchases as well as information on budget and purchasing status


Reported Imaging System Purchases Over the Next 18 Months, by Modality and Facility Type

Large Medium Small DICCT x x x x xCV x x x x xGeneral X-Ray x x x x xMRI x x x x xNuclear Medicine x x x x xUltrasound x x x x x

x x x x x


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Key Findings – Future Equipment Purchasing (2)


0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Hospital DIC Total

Facility Type

Res

pond

ents

as

a %

of T

otal

Vendor A Vendor C Vendor D Vendor B To Be Determined Other

Preferred CT Manufacturer, by Facility Type

Reported Imaging System Purchases Over the Next 18 Months, by Month


Jan Feb March April May June July Aug Sept Oct Nov Dec

Purchase Month

Nu

mb

er o

f N

ew

Un

its

2008 2009

Table of Contents

• Background• Introduction & Methodology• Sample 2Q 2008 Results• About Millennium Research Group• About Marketrack

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Millennium Research Group (MRG) is the world’s leading provider of syndicated and customized medical market intelligence.

Founded by market researchers and strategy consultants, MRG is focused solely on the medical device and technology markets with the goal of improving the quality of research and business insight available to the industry.

MRG provides a global outlook on the medical market, with research conducted in over 100 countries.

With more full-time staff than any of its direct competitors, MRG conducts research around the clock and around the globe.

MRG’s Market Coverage

About Millennium Research GroupCompany Confidential

Marketrack, a division of Millennium Research Group, gathers usage data from thousands of cath labs, operating rooms, surgery centers, and hospitals around the world on an ongoing basis.

Marketrack clients receive thousands of data points, including usage (units, revenue, and average selling price) and competitive data by manufacturer and brand as frequently as they like and as quickly as ten days after period-end.

Through Marketrack™, clients can easily determine their competitors’ market share and revenues, even before competitors know it themselves.

About Marketrack

Barbara TassaProduct Specialist, MarketrackT: (416) 364-7776 X173E: [email protected]

Dave PlowManager, Hardware & GMTT: (416) 364-7776 X136E:[email protected]


Documents

US Diagnostic Imaging Marketrack Project Introduction Presentation Company Confidential