Key Considerations for Resolving Medical Equipment Claims

Medical equipment encompasses a broad spectrum of devices critical to hospital and medical clinic operation. This category includes everything from CT scanners and MRI machines to ventilators, X-ray systems, sterilization tools, diagnostic devices, monitors, and more. 

The diversity of technical equipment demonstrates how particularly challenging these claims can be for insurers. These devices are often high-value—the cost of an MRI machine, for example, averaged $3.2 million in 2023. They’re also highly complex, requiring specialized expertise to assess. 

However, with the right framework in place, managing these claims can be far less daunting. Use these key considerations to streamline your next medical equipment claim process. 

Medical equipment claims are often high dollar, high stakes, and may need to be resolved quickly. Make sure you and your team are prepared.  

Is the Equipment Damaged? If So, What Caused the Loss? 

In both large-scale and smaller losses, hospitals and medical facilities may inadvertently include non-damaged equipment in their claims. This can happen for a variety of reasons, ranging from the assumption that all equipment in the affected area has been compromised to the sheer complexity of assessing multiple pieces of specialized machinery in the aftermath of an event. 

You need an objective consultant that is familiar with medical equipment to ensure you have what you need to make accurate claim resolutions. In some cases, equipment may need to be professionally cleaned and stabilized before it can even be properly evaluated for damage. Without an expert’s insights, you could risk replacing or repairing equipment that’s operating as designed. 

If there is a verified failure, these experts can also help you determine the cause of loss. Medical facilities may file equipment claims following power outages, floods, fires, or extreme weather events. While all of these can significantly impact medical equipment, it’s crucial to independently verify the cause of loss for each claimed item, because equipment failures aren’t always tied to their reported perils. 

Wear and tear, especially as equipment ages, is a common cause of equipment losses. According to Becker’s Hospital Review, the average age of capital investments in medical equipment and infrastructure increased by 7.1% across all hospitals in 2023. This trend suggests that aging equipment may not be replaced or upgraded as frequently as it was in the past. After a catastrophic event or similar incident, policyholders may mistakenly attribute damage from wear and tear to the event itself. But by relying on an unbiased, expert assessment partner to verify the cause of loss, you can avoid settling claims for perils that aren’t covered under the policy. 

Can Damaged Equipment Be Repaired? 

Before settling for a replacement, make sure you’ve fully explored and ruled out repairability. 

Consider the example of a power outage at a hospital or clinic. This event could reset medical equipment to its default settings, leading to inaccurate readings or improper functionality and creating the impression that the equipment needs replacement. 

But an objective inspection by a qualified expert may uncover repair opportunities that could otherwise be missed. For example, it may be possible to restore the medical equipment to pre-loss condition by simply having a professional recalibrate the devices. In other instances, components may need to be replaced, but not the entire system. 

Power outages may reset medical equipment, such as monitors and scanners, making them appear more damaged than they are.  

In situations where replacements are the most appropriate solution, either because damage is so extensive or the costs of parts and labor make repairs more expensive, make sure that replacements are Like Kind and Quality to the original equipment. Assessment partners should provide replacement estimates that meet this standard, while their repair quotes should reflect fair, market-value pricing. 

To streamline your workflow and simplify the claims process, consider working with a team that not only conducts thorough pricing research but also connects you and your policyholders with reliable vendors who can perform the work outlined in their assessment. This approach can go a long way toward helping you build stronger relationships with your insureds. 

Don’t Try To Tackle Medical Equipment Claims Alone 

Medical equipment claims are rarely straightforward. Navigating them can feel overwhelming— especially when coordinating all the parties you may need—unless you have an assessment partner who can handle it all. 

For over 20 years, TechLoss Consulting & Restoration, part of Alpine Intel’s suite of services, has helped insurance professionals resolve business-critical equipment and high net-worth residential claims. Their team, well-versed in the intricacies of medical equipment and claims, acts as an extension of your own. They provide the expertise to determine if equipment is damaged, identify the cause of loss, and assess repairability, helping you confidently manage even the most involved claims. 

TechLoss experts are fully equipped to inspect X-ray equipment and other devices in both medical and dental settings to provide insurance professionals with actionable insights. 

In addition to onsite inspections and desk reviews, TechLoss can reinstate warranties, provide temporary equipment sourcing, coordinate repairs, and even help you minimize overall exposure through equipment salvaging. Submit an assignment to experience TechLoss’ straightforward solutions firsthand. 

Alpine Intel’s content is meant to inform and educate readers using general terms and descriptions. They do not replace expert evaluations that determine facts and details related to each unique claim.