Estimated Remaining Useful Life of Your Medical Equipment
Estimated Remaining Useful Life (ERUL) is a highly useful opinion based upon the ongoing utility of a piece of medical equipment, a grouping of medical equipment, or other assets. We at MERC use the following definition of ERUL: an estimate of the time (in months) a device may be used and 1) Still be expected to be reliable; or, 2) Not be obsolete; or, 3) Not have consumed most or all if its market value. This estimate can help save a hospital, surgery center, or clinic money by helping them understand the current expected lives of their medical equipment and assets and help them plan for the future.
When conducting an ERUL, a medical equipment consultant factors in the age of the equipment, visible wear and tear, repair and maintenance history, state of technology (is it of current or dated technology for this type or modality of equipment), and typical useful lives of similar equipment. The American Hospital Association (AHA) publishes medical equipment and asset life expectations. These expectations are also considered, but must be balanced with the aforementioned factors. Frequently a piece of equipment can surpass the usability recommended by the AHA, thus leading to a longer life and greater utility of the asset for the healthcare facility, helping to lower costs. There are cases where an asset can fall short of its recommended AHA useful life because of wear and tear or rapid change in technology. A medical equipment consultant considers these dynamics in providing an accurate estimate.
ERUL is a great tool in understanding the value of a piece of equipment or a grouping of similar devices. It enables the facility to evaluate assets both in terms of measuring the service life up to this point in time, but also the projected future usage of the device. This makes it possible to project ROI and replacement timelines for assets, and to better understand the financial impact on the enterprise. MERC has conducted ERUL for thousands of pieces of equipment and assets, helping numerous healthcare providers more effectively plan and manage their medical equipment and other assets. We would be happy to help you with any of your needs or questions relating to the ongoing usability and lifecycle of your assets. Download our free whitepaper: Making Informed Decisions About Your Medical Equipment