In recent newsletters we have been discussing the various methods facilities can liquidate the remaining assets of a building that has either closed, merged, or been replaced. Another method of selling all those pieces of equipment is conducting a tag sale.
A tag sale is selling equipment by putting a price on each item. A sale can be open to the public, internal employees, certain set of invited buyers, or a combination of all three. Healthcare facilities have administered tag sales internally and have also hired businesses to handle the service.
There are a few advantages to liquidating equipment via tag sale. First is control over the price. By setting the price, hospitals can somewhat determine what equipment sells for. Another advantage is the goodwill hospitals can achieve with their employees by giving them access to items at a reduced cost. In other forms of sales, employees would have to bid or pay market value. In this setting, the facility can determine if someone gets a discounted price. Potential for higher returns is another advantage of a tag sale. If the market conditions are good and the pricing is set high enough, a hospital can receive top dollar for their liquidation.
There are disadvantages to a tag sale. One is the time it takes to administer such a sale. Auctions, third party removals take much less time than tag sales. Extended time in a closed building leads to higher utilities, more employee hours away from the main campus, etc. Also, tag sales can leave the seller with a lot of unsold equipment. Auctions, other forms of removal can leave empty buildings. Tag Sales need to have a plan for unsold equipment, whether it is a charity or scrap metal company, or some other business.
There are many ways to liquidate the remaining equipment in a closed building. Auctions, tag sales are the leading methods, but both have many advantages and disadvantages. What works best for a certain facility depends on time available and other factors.
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