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
• 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.
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