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!
Here’s the latest addition to our YouTube channel.
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.
The Medical Equipment Resources & Consulting Team would like to wish everyone a Merry Christmas and a Happy New Year!
May you have a wonderful holiday season and we look forward to working with you again soon!
Medical Equipment Resources & Consulting would like to wish everyone a Happy Thanksgiving!
It is a great time to spend with friends and family and reflect on the things we are thankful for. At MERC, we are thankful for the customers we have had the opportunity to serve, the future ones, and are looking forward to the remainder of the year’s opportunities to bring value to the healthcare marketplace.
Have a wonderful and safe holiday!
Often times liquidating medical equipment and other assets can be a complex and confusing process.Much of the value that is received for the item depends on what kind of transaction is taking place.There are definite differences between these variables and must be understood to fully get a grasp on what it means to liquidate assets.Hopefully the brief explanation below can help your organization better understand the liquidation marketplace.
Fair Market Value (FMV) is the market value of an asset based on a transaction between two willing and unpressured parties.This doesn’t factor in needing to sell an item on a deadline or the factors that often include a medical equipment sale like de-installation and re-installation.This value is best utilized on a peer-to-peer sale when the seller is selling the item(s) to a buyer who will keep them in their current location.This would most likely be the case when a hospital system or healthcare management firm purchases the assets of a particular doctor or center that will keep them in use at their current location.A value based upon this type of transactions will reflect higher values because the items are bought where they are being used and taken care of.
On the other hand, Orderly Liquidation Value (OLV) is when assets are being sold outside of the peer-to-peer relationship and instead sold in a specific time period.This is most common when an asset is sold to a refurbisher or medical equipment buyer on the secondary market.OLV then factors the costs involved in the possible de-installation of the items (if necessary), certifying, refurbishing, warehousing, and marketing costs for re-sale.When all of these potential costs are factored in, the seller has to realize the value will be a reflection of these costs and likely be less than an FMV.These sales are typical when a facility has no more use of the asset (due to new technology purchase, etc.) and when items come back from leases or are repossessed due to default in payment.These items then have to be put through several cost inducing steps that are then factored into the OLV.
As you can see, FMV and OLV are two separate valuations, but both essential in understanding expectations.We hope that the brief summation of the differences in valuations above can help your organization better understand what is realistic in the type of sale/purchase that they are embarking upon.MERC can help your organization with these types of transactions and help provide both Fair Market Valuations and Orderly Liquidation Values.Contact us with any questions or inquiries, we’d enjoy helping you in any way possible!