Know your options for healthcare inventory & appraisal – MRG Newsletter – January 2013

There are two types of companies which provide different methods for inventory and appraisal services for a hospital or medical practice:

1) Business Valuation Firms
2) Capital Equipment Valuation Firms

Business Valuation Firms provide a holistic approach to evaluating medical practices. Their service offering provides an outlook on every aspect of the business. Their evaluations include:

• Value of Real Estate and lease agreements
• Cost of staff
• Current and future cash flow
• Current and dated patient flow
• Assets/liabilities
• Projected revenue

Another type of firm healthcare facilities use to evaluate practices is a Capital Equipment Valuation firm. Capital Equipment Valuation firms provide assessments on the assets within the practice. Their approach is focused primarily on the medical, IT, and business equipment located in the buildings. Capital Equipment Valuation firms provide:

• Detailed list of equipment found onsite at medical practice
• Reports include: all medical equipment, furniture, computers, servers, phone systems, etc.
• Manufacturer, model number, description, and serial number documented for each asset
• Condition assessment of each piece, rating can determine need for replacement
• Location of each asset in facility
• Market based approach to appraising each item

There are many reasons why it is necessary to conduct an inventory and appraisal for your healthcare facility. These may include insurance purposes, mergers, acquisitions, liquidation, etc. Having a thorough understanding of how a Business Valuation firm operates when compared to a Capital Equipment Valuation firm can provide some insight to decide which method may be best for you. In next month’s newsletter we will discuss the variables that make up each firm and some of the differences in services provided by each.

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Looking to appraise your hospital or practice?

Be sure to work with a certified healthcare appraisal company.  In order to receive an accurate appraisal, it is important to work with a company that is part of a
professional appraisal association, such as the National Association of
Professional Appraisers. The skills and knowledge attained by these members will
ensure that your deliverables will contain the FMV of your assets and medical
equipment.

“Slow down, you move too fast”

Many may remember the lyrics from this Simon and Garfunkel song, but as a business owner this phrase may resonate with how one should run their business. In today’s fast paced mindset of “get while the getting is good” and “we need to dominate the market now with the latest and greatest services” can have its downfalls.

In February’s issue of Inc. Magazine, Danny Meyer the founder and CEO of Union Square Hospitality Group discusses how it took him 10 years to expand from 1 to 2 restaurants. “It’s easy to think running a business is a sprint. During the first 10 years I learned the value of allowing a business to develop its soul” states Meyer.

Having worked for a firm that put so much effort into being the biggest player on the block in the shortest amount of time, I have seen how financial pressure and operational mismanagement brought a company with so much upside potential to its knees and ultimately break it because it grew too fast.

No one but the business owner can ever understand the intricacies of what makes your company truly special or as Danny Meyer references the company’s soul which is developed over time. Based on past experiences I have always believed that it’s important for a company to grow methodically and naturally based on delivering quality services that meet the needs of customers while being responsible at keeping the cost of that service manageable for both the client and the company.

As your company grows and matures remember it’s not about the speed in which you move during this growth process but it’s more about the growing and experiences that are achieved along the way to reaching your company’s greatest potential without jeopardizing its soul.

Fast, accurate equipment appraisal

Manage Resource Group, Inc.
APPRAISE NOW
BUDGET VALUATION SERVICE 

Budgets are approved – you need to know the value of your old equipment.

APPRAISE NOW – Budget Valuation Service (BVS)  identifies Fair Market Value for equipment displaced by new purchases.  Knowing the value of these assets empowers decisions made on the proper avenue for decommissioned equipment.  ie: trade-in, sale to secondary market, donated, or salvaged.

 Let us help you…

  • Identify fair market value (FMV) on systems and equipment that will be displaced with new purchases
  •  FMV’s to help you negotiate higher trade-in credits and offer alternative revenue streams for equipment
  •  Provide a proven sales method for system replacements and change-outs should the hospital wish to sell decommissioned assets
  •  Determine the best course of direction for assets that will be displaced over the upcoming year

MRG specializes in system replacements and technology change-outs. On average clients that utilize our services see an 85 – 90% net return for these types of projects. We would be happy to make ourselves available to meet with your team to discuss how we can assist your efforts.

Manage Resource Group, Inc. “Helping to assess, inform, and empower healthcare providers with their equipment management needs.” For more information on MRG’s services, visit our website or contact us at (440) 289-6490.

Social media use at hospitals proves to be successful

Are you using social media at your hospital? If not, you could be missing out on an excellent avenue for customer service and awareness of your facility. As social media continues to grow, it is important for companies to implement its features into part of their customer service program. In doing so, answers and support can easily be provided to those in your community. This will help to create intense customer loyalty, not only in a retail or service-oriented marketplace, but with the health care industry as well. By having a social media presence, it helps reassure customers that your hospital is reputable and can be trusted.

Many hospitals have already jumped on the social media train and are reaping the rewards of this great technology. For more information about the success of hospitals using social media, see the attached link:
http://sproutsocial.com/insights/2012/09/hospitals-using-social-media/

Key Issues for hospitals in 2013

As we begin a new year, changes will most likely continue for healthcare organizations. Health Systems, Hospitals, physicians, healthcare personnel, vendors and anyone else linked to the market will be impacted in some way. Due to continued volatility in the market, hospital consolidations will continue to take place as independent facilities struggle to compete with the larger hospital systems.

There are several factors that hospitals may need to consider if they wish to remain independent. Along with examination of current cost margins, the hospital will need to think about their borrowing capacity and whether or not the hospital is competitive with other facilities nearby. If the hospital is in need of renovations, additional services, or other updates, patients in the area may consider driving a little further to a hospital that has the necessary updated medical equipment and other assets.

In the end, it boils down to the quality of care that is provided to patients. In order for the hospital to maintain successful doctors and be able to align future qualified physicians and other medical staff, the facility itself must be modernized and have updated equipment.

There are several other key issues hospitals are expected to face this year according to Becker’s Hospital Review. For the complete article, see link below: http://www.beckershospitalreview.com/hospital-management-administration/12-key-issues-hospitals-will-face-in-2013.html