MRG News & Views – August, 2013 Newsletter

Equipment Lifecycles – Part II – Technology & Planning

Technology planning graphic

In last month’s issue of the newsletter we introduced the different phases of Medical Equipment Lifecycle.  In this issue we will take a closer look at the very beginning stage of the cycle – Technology & Planning.

In the Technology & Planning stage, the facility is identifying needs associated with equipment replacement.  There are many reasons why a hospital will replace their equipment:

  • Clinical department determines that technology needs updated.
  • The facility is looking to standardize equipment across their system
  • The OEM no longer supports the asset currently in use and parts are difficult to locate
  • Asset has served its useful life and needs to be retired
  • Financial factors associated with the asset determine that replacement is cost effective for the facility

As the facility begins planning for the replacement, multiple departments will be involved with the selection process for the new asset.

  • The department where the equipment will be located and used for clinical purposes
  • Clinical engineering who will provide input on available technology and future preventative maintenance
  • Purchasing who will be involved with new equipment negotiations and pricing
  • Finance who will outline budgets and available capital for the replacement project

It is important for the facility to determine the best course of direction for the old assets as the budgeting process begins. Hospitals must take a proactive approach and work with a company who can provide valuations for the replaced equipment.  This data will provide valuable information to determine the best method for post clinical use.  Hospitals will use the figures to decide if the equipment should be traded-in, resold, donated, or scrapped.

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MRG Associations

AHRMM-2013 conference logo

We enjoyed catching up with all of you at the AHRMM conference & exhibition in sunny San Diego last month!  Thanks to all that stopped by our booth. We would like to congratulate our two lucky raffle winners of the VISA Gift Cards:

 Joseph Loya, St. Joseph’s Candler in Savannah, Georgia

&

Richard Wisnoski, Catholic Health East in Newtown Square, Pennsylvania

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MRG Fun Facts

Enjoying the last of the warm summer days?  Did you know that the “dog days” of summer were named from the Dog Star, ‘Sirius,’ which is the brightest star in the Canis Major constellation. The ancient Romans blamed Sirius for the heat, drought, and discomfort that came along with the extreme summer temperatures.

Frisbee has been a popular summer sport for as long as we can remember.  We can thank Yale University students for this invention. Legend has it they invented the game when tossing pie tins from the Frisbie Pie Company on the campus lawn in the 1940s.

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MRG Recent Projects

  • MRI sale and removal
  • I&A of cardiology practice in OH with multiple locations
  • I&A general medicine practice in OH
  • Reconciliation and audit of physician practice in MI
  • Desktop appraisal family practice in MI

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About MRG:

Manage Resource Group, Inc. is a privately-owned healthcare equipment management company headquartered in Berea, Ohio.  Our client focused services create strategies for each customer to increase profitability on capital equipment.  We are industry experts offering the following service lines:

  • Inventory services
  • Appraisal services
  • Resale management

For more information, visit our website at www.manageresourcegroup.net

Back to school time = big changes for health care professionals

back to school

Many health care professionals are hitting the books again this fall by enrolling in traditional MBA classes in preparation for the changes ahead with the Affordable Health Care Act. One in five medical professionals will make up the program’s class this year at MIT’s Sloan School of Management. They have found that there are more students with a health care background enrolling than any other industry. Practicing physicians, surgeons, and other senior-level health care professionals are seeking an MBA to prepare for other management roles or to further improve their practices.

We have seen many changes in our own industry of medical equipment services as the federal government continues to make changes to the health care system. It will be interesting to see how many related fields will follow suit with continued education to prepare for Health Care Reform.

For more information, follow the attached link:

http://medcitynews.com/2013/07/the-business-of-healthcare-more-docs-heading-back-to-school-are-likely-to-go-for-traditional-mba/

 

Do you know the value of the equipment impacted by your replacement program?

CT ScanManage Resource Group, Inc. can help! Let us introduce you to the benefits of MRG’s APPRAISE NOW Budget Valuation Service (BVS)

Our industry experience can assist on a few different levels:

  • Identify fair market value (FMV) on systems and equipment that will be displaced with new purchases
  • FMV’s will 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
  • Help you be proactive instead of reactive by determining the best course of direction for assets that will be displaced over the coming year.

MRG’s Service Benefits:

  • Identify FMV for your system
  • Increased trade-in credits
  • Highest net returns in the industry
  • Secure forms of payment
  • No shipping / handling / storage fees
  • No long-term contracts

ROI on past projects:                Total Sale:                    Net Return:

1999 CT Scanner                              $17,000                        $15,000

Olympus Endoscopy Suite             $135,000                      $114,750

Baxter Pump Change Out              $178,000                      $160,000

MRG Specializes in system replacements and technology change-outs.  On average clients that utilize our services see an 85 – 90% net return on their projects.  As you meet with the budget committee, please inform them of our services.  We would be happy to meet with your team to discuss how we can assist your efforts.

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

www.manageresourcegroup.net

Trend to continue with health systems becoming insurance providers

health insurance

Watch out insurance companies, Obamacare may have created more competition that you expected.  With the changes in healthcare reform larger health systems and IDN’s are jumping into the insurance business.  Directly providing patient health insurance allows the health system more control over costs, reimbursements and incentives keeping patients in their network for services.

New York hospitals join the payer fray by creating a new commercial insurance plan for their patients:  http://www.healthleadersmedia.com/content/FIN-294890/NY-Hospital-Joins-Payer-Fray

UPMC has been providing health insurance for the last 15 years.  Now Highmark which provides commercial health insurance has purchased Western PA hospitals to create their own health system and will continue to provide insurance coverage:  http://medcitynews.com/2013/07/a-note-for-health-insurers-everywhere-keep-a-close-eye-on-pittsburgh/

Are the days numbered for Blue Cross, Medical Mutual and others?  Time will tell, but health systems have decided to get aggressive with the changes in healthcare and will be providing competitive insurance for their patients in the future.  The insurance companies may become just as aggressive as we have seen in Highmark’s case and start targeting hospital acquisitions.  Let’s hope this market shake-up provides better rates for the consumer.

MRG is back from the San Diego AHRMM show!

Manage Resource Group, Inc. was excited about exhibiting for the first time at this year’s AHRMM Show in San Diego.  The theme of this year’s show was Anticipate/Connect/Lead.  It was a busy couple of days meeting with supply chain professionals and sharing our services.  We enjoyed seeing past clients and meeting new contacts.   We appreciate all that stopped by our booth to meet with us, and we look forward to the opportunity of providing our equipment inventory, appraisal, and resale services to you.  We will be announcing the winners of the Visa gift cards shortly.  Mark your calendars for next year’s AHRMM show to be held in Orlando, Florida August 3-6 The theme will be Initiate/Collaborate/Innovate

boothSan Diego AHRMM show