When a transition takes place at a hospital or other healthcare facility, it can trigger many knock-on effects. Frequently one of these is the need to liquidate surplus medical equipment, other assets or supplies. Getting this right is a crucial step that can have a big impact on the success of your transition. Here are three reasons liquidation during a facility transition is important.
Eliminating Excess – Eliminating excess medical equipment, assets and supplies is often necessary because items are being purchased for the new location. Excess equipment carries costs in terms of decreased efficiency, storage and labor for employees to move and handle items. This can reduce time available for patient care, which is the organization’s priority and mission.
Recovery of Value – The recuperation of value is also a benefit of liquidating equipment during the transition project. A transition project at a healthcare facility involves costs and a commitment to spend money on logistics, planning and other services to make sure it is a success. Liquidating some of the equipment that will either be replaced or no longer needed at the new facility is a way to recover some of expenditures. Medical equipment usually only sells for a fraction of its acquisition costs, but every dollar helps.
Lowering Logistics Costs – When a transition occurs, logistics costs are inevitable. Movers, transition specialists and vendor liaisons will be required to facilitate the process. When liquidation takes place during the transition, you not only recuperate some of the costs, but you avoid the costs of moving items and selling them after the fact. Moving an item once is expensive enough; moving it twice when you decide later the item is surplus is an avoidable expense. In addition, liquidating equipment during transition can also help cut moving costs if the item is purchased and removed by the buyer.
Liquidation as a result of a transition project has its benefits. MERC has helped customers with this process and would enjoy speaking to you about your specific needs. Feel free to contact us; we look forward to helping you with a custom-fit approach
When medical equipment is approaching its end of life, determining how to get the most value from an item requires careful analysis. Alternatives could include selling the item in the secondary market, repairing, redeploying, disposing of the equipment or trading it in toward the purchase of newer units. Below are five important points to consider as you develop an end-of-life plan for your capital medical equipment:
- Equipment age
- Usage or utilization history
- Replacement cost
- Market value
- Resources available to replace a device
Each of those points can be complex and require research to explore. But each contributes to a complete view and you will want to factor in each of them to make the best decision.
As you consider these points, the information you gather will include such things as:
device type; organization’s operational time horizon for replacement; current and projected budget.
Feel free to contact MERC to discuss these topics and how we may be able to help you in this process.
Every project offers an opportunity to gain valuable knowledge. MERC’s deep experience in healthcare facility transition planning has enabled us to pinpoint steps that prime projects for success and the most common errors. In this overview, we identify the five top mistakes often committed in transition planning. This background will help ensure your upcoming transition progresses as smoothly as possible.
- Starting the process too early – It’s often stated that you can never start a healthcare facility transition plan too early. The trouble is that it can create planning fatigue and resentment among staff because it consumes too much of their time. This is detrimental when many staff are paid to care for patients. A major change like this requires all team members to pull together to get the transition completed, not to avoid the planning because they are worn out by it.
- Starting the process too late – Waiting too late obviously prevents planning with sufficient detail to create a smooth transition. Additionally, the costs associated with expediting processes and the added risk for error cannot be overstated. Nobody likes additional costs and planning by “shooting from the hip” when it involves a hospital project that could well have a budget into the millions of dollars. It’s a risk that isn’t worth taking.
- Making the process too inclusive – When it comes to transition planning, inclusiveness implies empowerment and authority. But having too many participants creates the classic predicament of “too many cooks.” It slows progress and can turn your facility transition into a political and/or bureaucratic quagmire. It may seem to be the right thing to do, but limiting participants it to the essential players is the best way to avoid gridlock.
- Not including the right stakeholders – Just as making things too inclusive is a mistake, not getting the right stakeholders involved is another. You don’t know what you don’t know, so your transition team has to include the right team members to give insight into all critical areas.
- Inflexibility – A healthcare facility transition creates operational challenges. Everyone involved has to give a little to get things done. Participants who magnify obstacles and demands add cost, complexity, risk and anxiety for the team and the project in general.
We hope this overview has given you a starting point for effectively managing your project. If you have any further questions about hospital transition planning or any of MERC’s medical equipment consulting services, contact us today. We are here to help you achieve the right solution to your needs!
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Our transition planning consultants have experience with small, medium or large healthcare facilities. Working with you to accurately plan a relocation to a new facility, merger or buyout. Being well prepared and falling within budget is two of the focal points of our service.
Get in touch with us today for additional information.
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