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Who this checklist is for
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Step 1: Name the category you're actually buying
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Step 2: Compare total cost of ownership, not list price
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Step 3: Verify regulatory status before you fall in love
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Step 4: Ask about integration early, because the vendor won't
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Step 5: Read the service agreement like it's a contract
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Step 6: Know what the vendor doesn't do
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Step 7: Get three quotes, then score them properly
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Four mistakes that will cost you
If you're a procurement manager at a hospital, pathology network, or reference lab, you probably don't need another article explaining why diagnostics matter. You need a process. This is the checklist I've built over seven years of managing an annual diagnostics budget of about $1.8 million, and it's saved us from some genuinely bad purchases. It has seven steps. Most of them happen after the quote arrives.
Who this checklist is for
It's for people who have to compare complex diagnostic systems and then explain to a CFO why one option costs more than a seductive alternative. I've used this process to evaluate Roche Diagnostics products and to evaluate their competitors. It works for both, which is kind of the point—the process should be vendor-neutral even when your biases aren't.
One caveat: I'm a procurement manager, not a lab scientist. I can't tell you which assay is more clinically sensitive. What I can do is tell you what's missing from the vendor's proposal.
Step 1: Name the category you're actually buying
Sounds obvious, but it's where I see the most avoidable errors. Histology equipment, patient monitors, chemistry analyzers, molecular platforms—these are not interchangeable budget lines. They have different service cycles, different consumable burn rates, and different regulatory baggage.
When the histology department asks for "new stainers," I don't just go hunting for a price. I ask: What's the current slide volume? Is this a replacement or a capacity add? How many operators will use it? Without answers, any quote you get is essentially a guess with a price tag.
Checkpoint: write down the category, the clinical need, and the expected lifespan in one sentence. If you can't, don't send out a request for proposal yet.
Step 2: Compare total cost of ownership, not list price
When I compared our maintenance records across two histology platforms side by side—same workload, similar output—I finally understood why the upfront price is the least interesting number on a quote. The real cost lives in consumables, service visits, and downtime.
In 2024, we ran a TCO comparison on histology equipment and a patient monitor refresh at the same time. The cheaper system on each shortlist looked great initially: about 18% lower list price in both cases. But once we added in the consumables, the mandatory quarterly service call, and the expected downtime for the older design, the gap nearly vanished. By year three, the "cheap" option was actually 9% more expensive on one of them.
Don't hold me to the exact percentages, but the pattern holds: consumables can represent 50–60% of a diagnostic system's five-year cost. If a vendor won't put a consumables price list in writing as part of the quote, that's a red flag. In my opinion, it's also a good reason to put them last in the scoring matrix.
Step 3: Verify regulatory status before you fall in love
This is the step that separates people who buy devices from people who buy spreadsheets. A diagnostic device that has FDA clearance in the U.S. still needs to be included in the Australian Register of Therapeutic Goods (ARTG) before it can be supplied in Australia. That's a TGA requirement, not a business preference. According to the U.S. Food and Drug Administration (fda.gov), medical devices are classified as Class I, II, or III based on risk—and most diagnostic systems you'll evaluate sit in Class II or III.
In Australia, you'll likely be dealing with the local subsidiary—for example, Roche Diagnostics Pty Ltd. They should be able to give you the ARTG listing number without you asking twice. If they hesitate, or if the response sounds vague, consider that information. Regulatory gaps have a way of becoming your problem a year later.
Roughly speaking, this check takes ten minutes, costs nothing, and is pretty straightforward. It's the easiest item on this list, and it's the one people skip.
Step 4: Ask about integration early, because the vendor won't
A patient monitor that can't send data to your EMR is an expensive device that happens to measure things. A histology system that outputs files your pathology software can't read is a fancy cabinet. Integration might feel like an IT topic, but it's a procurement topic, because it has a dollar value.
I went back and forth between a Roche Diagnostics system and a lower-priced alternative for almost three weeks in 2023. The alternative offered some real savings on paper, enough to give me a stomach ache every night. But when I asked about middleware, HL7 interfaces, and who pays for the integration project, the proposal changed. The "savings" shrank to almost nothing once we priced the interface work and the risk of data migration.
I ultimately chose the more expensive system because the integration path was cleaner and my IT team was already drowning. And honestly? I'd make the same call again. The ROI on being able to bill accurately is a lot more certain than the ROI on a slightly cheaper box that doesn't talk to anything.
Step 5: Read the service agreement like it's a contract
Because it is one. I have mixed feelings about bundled service contracts. On one hand, the predictability is nice, and it makes budgeting easier. On the other hand, I've sat through too many renewal meetings where the annual uplift climbs politely above inflation and everyone nods like that's normal.
Things I check on every service agreement:
- Guaranteed response time—is it four hours, or "next business day"?
- Are preventive maintenance visits included, or billed separately?
- Do software updates come with the contract, or are they extra?
- Is the consumables price locked for the term?
We were once billed separately for a "calibration visit" that the service agreement implied was covered. It was a $900 line item that disappeared only after I emailed the vendor a screenshot of their own terms. That's not me being rude; that's me doing my job.
Step 6: Know what the vendor doesn't do
This one is about scope. In procurement, scope creep is usually considered a vendor problem, but it can also be your own. A vendor who says "we handle everything" is either overselling or about to subcontract part of your work to a third party you never vetted. I'd rather work with a specialist who knows their limits than a generalist who overpromises.
A weird example: one of the keywords attached to this article's traffic is "what is a prosthetic." It comes to a diagnostics brand because people blur the lines between device categories. For the record: a prosthetic is an artificial device that replaces a missing body part. It's therapeutic, not diagnostic. It belongs in a different budget line, a different regulatory pathway, and usually a different supplier. If a diagnostics vendor tried to sell you a prosthetic as part of a lab equipment deal, you should have some questions—not because prosthetics are bad, but because that contract has no business containing one.
Good vendors do the opposite of overselling. The one who told me, "this isn't our strength—here's who does it better," earned my trust for everything they said afterward. That's the expertise boundary more companies should learn to respect.
Step 7: Get three quotes, then score them properly
Our procurement policy requires at least three quotes. That's not because the cheapest option is the best option; it's because having no comparison is how you end up paying for a "free setup" that costs $450 in hidden fees.
So get your three quotes. But don't sort by price. Build a simple scoring matrix with the six things this checklist covers: TCO, regulatory compliance, integration cost, service terms, scope clarity, and the vendor's willingness to say no. Weight them however makes sense for your institution. If you do that, the ranking almost always looks different from the pure price ranking.
Four mistakes that will cost you
- Comparing list prices without attaching service terms. Two identical machines from two resellers can have wildly different support costs, and the cheaper one isn't always the one you think.
- Assuming you're locked into one brand for life. Vendor lock-in is real, but it's worth testing every few years whether the interface is genuinely proprietary or just convenient.
- Forgetting about training. A histology system that requires two weeks of off-site training has a cost that rarely appears on the quote, and it lands on your operational budget instead of the capex budget.
- Skipping verification. Confirm the ARTG listing, the ISO 13485 certification of the manufacturer (Source: ISO, iso.org), and whether there's a local service entity before anyone signs. Medical device quality management is not a vibe.
If this feels like a lot of steps, that's kinda the point. The last thing you want is to discover a hidden cost six months into a five-year contract. I've been in that position once, and once was enough. Follow the checklist, weigh the whole cost, and don't let a smooth pitch override a seven-step process.