Right to repair: reshaping the medical equipment industry

By Jorge Zapata, Healthcare Associate at 42T

The medical equipment industry faces a pivotal moment - sustainability and consumer rights are taking centre stage. The growing right-to-repair movement is revolutionizing the $54 billion medical equipment maintenance sector, forcing OEMs to rethink their long-standing business models and adapt to an evolving landscape

Challenging traditional revenue streams

Original Equipment Manufacturers (OEMs) have relied on profitable service contracts for years as a key part of their business. These contracts, typically costing about 10% of the original equipment price, have been a steady source of income.

But now, Independent Service Organizations (ISOs) are shaking things up by offering similar services at lower prices, directly challenging OEMs. This isn't just about cost - it's reshaping the relationship between OEMs and their customers. As healthcare providers find more affordable options, the loyalty that once tied them to OEM services is weakening.

In response, OEMs are getting creative with their strategies. Some are exploring tiered service models while others are bundling extra services to justify higher prices. The ultimate goal for these companies is to stay competitive in an increasingly crowded market where traditional approaches no longer guarantee success.

Repairability: R&D's new priority

The push for easier repairs is changing how OEMs use their resources. They're shifting focus from cutting-edge innovation to designing products that are easier to maintain and fix.

This new direction involves investing heavily in designing products for simpler maintenance, creating detailed repair guides, developing proprietary diagnostic tools, and creating public-friendly service tools.

While this shift might slow down new product releases, it's opening doors to fresh ideas in product design and lifecycle management. However, balancing openness with protecting intellectual property and maintaining quality is the challenge - it requires careful navigation of legal, technical, and business issues.

A new focus: asset management and total cost of ownership

As the industry adapts, a new approach focusing on asset management and total cost of ownership (TCO) is emerging. This method looks at the big picture of medical equipment, considering not just the initial purchase price, but also maintenance costs, downtime, and longevity.

Healthcare providers are becoming more sophisticated in their purchasing decisions, looking beyond the price tag to understand the true cost of owning and operating equipment over its entire lifespan.

This shift is pushing OEMs to rethink how they approach product longevity and after-sales support. The focus is moving from frequent replacements to equipment that lasts longer, is easier to maintain, and can be upgraded.

Some OEMs are responding by offering comprehensive asset management services that include predictive analytics, performance optimization, and end-of-life planning. By taking this holistic approach, OEMs are finding new ways to add value and stay relevant in a changing market.

Losing control of customer touchpoints

As repair options increase, OEMs face a new challenge: losing control over customer interactions. Traditionally, every repair or maintenance visit was a chance for OEMs to gather valuable user data, ensure quality, and explore upselling opportunities.

With more third-party repair options, these touchpoints are disappearing. OEMs must now find new ways to connect with customers and gather insights throughout the product's life, adapting their strategies to maintain strong customer relationships in this evolving landscape.

The changing regulatory landscape

The right-to-repair movement isn't just a grassroots effort - it's becoming law. Several U.S. states have introduced, or passed, right-to-repair legislation, and similar movements are growing globally.

These laws are changing the game by forcing OEMs to provide repair information, tools, and parts to independent repair shops and individual owners. It's a significant shift from the closed systems many OEMs have used in the past.

In the medical equipment sector, the regulatory landscape is especially complex. OEMs must balance right-to-repair compliance with medical device regulations, all while ensuring patient safety and device effectiveness. This delicate balance requires a comprehensive approach to product design, documentation, and service provision.

Adapting to innovative business models

Forward-thinking OEMs aren't just reacting to these changes but proactively exploring new business models to turn challenges into opportunities. Some offer authorised repair training programs, allowing them to maintain quality control while creating new revenue streams. Others are venturing into direct-to-consumer parts and tools sales, enabling them to participate in the independent repair market rather than being excluded from it.

Subscription-based maintenance services are gaining traction, offering predictable costs for customers and steady revenue for OEMs. Some companies are selectively open-sourcing certain aspects of their technology, fostering innovation while maintaining control over core proprietary elements.

Digital Twin technology is also emerging as a powerful tool, allowing OEMs to create digital replicas of devices for remote diagnostics and predictive maintenance.

These adaptations reflect a fundamental shift in how manufacturers, healthcare providers, and medical equipment interact. The emphasis is moving towards long-term value, repairability, and efficiency over traditional sales cycles.

Technology's role in enabling repair

As the right-to-repair movement gains momentum, technology is playing a crucial role in streamlining repairs. Advanced diagnostic tools, augmented reality-guided repairs, and AI-powered troubleshooting are becoming increasingly common.

This convergence of right-to-repair principles with Industry 4.0 technologies is creating new possibilities for remote diagnostics, predictive maintenance, and AI-assisted repairs.

Some OEMs are developing sophisticated telemedicine-style platforms that allow them to guide on-site technicians through complex repairs remotely. This approach helps OEMs maintain a level of oversight and quality control even when they're not physically present, adapting to the new realities of the repair landscape while still ensuring high standards of service.

Impact on innovation

One of the key concerns raised by OEMs in response to right-to-repair initiatives is the potential impact on innovation.

The argument is that if companies can't protect their intellectual property and maintain control over their products, it could restrict investment in research and development. However, proponents of right-to-repair argue that increased repairability could actually spur innovation in new directions.

Designing for repairability forces companies to think about modularity, standardization, and longevity, which can lead to breakthroughs in materials science, interface design, and even in the business models surrounding medical equipment.

Some OEMs are finding that the challenge of designing for repairability is pushing them to develop new technologies and approaches that have applications beyond just making devices easier to fix.

For example, advances in modular design for repairability are also making it easier to upgrade devices in the field, potentially extending product lifecycles and opening up new business opportunities.

The global perspective

While much of the right-to-repair discussion has centred on markets in North America and Europe, the implications of this movement are global. In developing countries, where access to authorized repair services may be limited, the ability to repair medical equipment locally can be crucial for maintaining healthcare infrastructure.

Some OEMs are responding to this global challenge by developing region-specific versions of their products that are designed for repairability in low-resource settings. Others are partnering with local organisations to build repair capacity and ensure the availability of spare parts.

These initiatives not only address the immediate needs of healthcare providers in developing countries but also open up new markets and opportunities for OEMs willing to adapt their products and business models to these unique challenges.

Looking ahead

As the industry continues to evolve, OEMs must strike a delicate balance between innovation and accessibility. This balancing act has the potential to reshape the future of medical technology development and support.

The next few years will be critical in determining how the medical equipment industry adapts to these changes - OEMs that can successfully navigate this shift, embracing repairability while continuing to innovate - will be well-positioned for success in this new era.

The right-to-repair movement is more than just a challenge to OEMs - it's an opportunity for the industry to reimagine its approach to product design, customer relationships, and long-term sustainability.

As healthcare providers and patients become more engaged in the lifecycle of medical equipment, there's potential for a more collaborative, transparent, and ultimately more sustainable approach to medical technology.

The future of medical equipment maintenance is likely to be characterised by greater openness, increased collaboration between OEMs and third-party repair providers, and a renewed focus on longevity and sustainability.

For OEMs willing to embrace this change, the right-to-repair movement offers an opportunity to build stronger, more enduring relationships with their customers and to play a leading role in shaping a more sustainable future for healthcare technology.

How 42T can help

As leading product development consultants, the 42T team is committed to pioneering healthcare advances through our expertise in solving complex technical challenges for medical device manufacturers. Contact us to explore how we could support your team.

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If you would like to find out more, please contact Jorge Zapata:

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