What should I ask about a medical lab’s analyzers and service contracts?

Start with an equipment list. For each analyzer, ask for the maker, age, location, how heavily it is used and its repair history. Find out whether it is owned, leased or provided by a supplier in exchange for buying reagents. That last arrangement can tie you to a supplier, so ask to see the terms.

Next, read the service contracts. Ask what is covered, what is excluded, how fast the supplier responds and what it costs. Look for renewal terms and what happens when ownership changes, since some contracts cannot be passed on without consent. Your lawyer should read these before you commit.

Then ask about the day-to-day. How are the machines checked and calibrated, who does it, and where are the records kept? What happens to testing when an analyzer is down? Ask whether there is a backup machine or an arrangement with another lab. Your accountant can help you weigh the annual cost of the contracts against the income the machines help produce. Ask whether the lab has ever had to send samples elsewhere during a breakdown, and how the clients reacted, since that tells you how well the backup plan holds.

Key takeaways

• List each analyzer with age, use, ownership and repair history.
• Have your lawyer read every service contract for transfer terms.
• Ask what happens to testing when a machine is down.
• Ask how the lab copes during a long breakdown and who the backup is.