MRG News & Views – September, 2013 Newsletter

Equipment Lifecycles – Selection & Purchasing

 Selection and Purchasing

Purchasing new equipment is a multi-step process for hospitals.  Once the Finance Department has approved the purchase and the decision has been made which manufacturer to work with for the new equipment, other items must be addressed.

Before the purchase order is completed, your department should understand exactly what you will pay for the equipment.   Are there GPO contracts in place that could provide discounted pricing?  If purchasing a large quantity of equipment, (ie: replacing all infusion pumps) be sure to inquire about group-buy discounts.   Also, it is wise to be educated on the service plan included for the new equipment.

Trade-In assessment is a must.  We cannot emphasize enough how important it is to know the value of the replaced equipment.  Too often, hospitals find it is easier to trade in their existing equipment for credits toward purchasing new.  This is not always the best decision when it comes to maximizing equipment’s return on investment. In order to properly negotiate your trade-in with the OEM, be sure you know the fair market value of the old assets.

Baptist Hospital East 0008

When aware of the current value, decisions can be made for determining the future of the existing equipment.  Below are options:

  •  negotiate trade-in with the OEM
  • sell to open market
  • transfer the equipment internally or to another location/department
  • donate
  • scrap if no value

It is extremely important for the facility to determine an accurate appraisal of your equipment before new items are purchased.  This step should always be part of the overall purchasing process.

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MRG Fun Facts

It’s September – yellow school buses are on the road again and students are back in the classrooms hitting the books.

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Did you know that until the 1930’s high school was not really a part of school?   Before that time, Americans only completed eight years of school. The Great Depression played a big part in changing schooling because there were so many communities that had little work to offer. The goal was to keep teenagers in the classrooms as long as possible to reduce the competition for adults in the workplace that hoped to earn a higher wage.

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MRG Recent Projects

  • I&A Family Practice in MI
  • I&A of 2 Cardiology Practices in OH
  • I&A Family Practice in OH
  • Appraisal and Monthly Lease Assessment in KY
  • Desktop Appraisal Physician Practice in CA
  • Desktop Appraisal of Capital Asset Ledger for 400 Bed Hospital in KY

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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

Hospitals make staff cuts in the name of Healthcare Reform

layoffs

The Cleveland Clinic recently announced they need to cut $330 million from their 2014 budget due to the quickly approaching Healthcare Reform. Since a majority of hospitals’ overhead is in labor, salaries, and benefits, the health system noted the possibility of layoffs or early retirement for qualifying candidates. Other Cleveland area health systems have made similar, budget cutting moves. All health systems list the rising cost of patient care as the reason to lower overhead.

There is no doubt that reimbursements are shrinking and healthcare reform brings about many unknowns. Yet, one can wonder whether these moves are necessary or is the hospital taking the opportunity to thin the workforce and not be questioned publicly?

To read more about the Cleveland Clinic budget cuts: http://www.cleveland.com/healthfit/index.ssf/2013/09/cleveland_clinic_to_cut_330_mi.html

Manage Resource Group’s Appraise Now

Equipment appraisals at your fingertips!

appraise-now-tm button - white bkrd

Enjoy the convenience of Manage Resource Group’s APPRAISE NOW – a secure, web-based approach to determining fair market value (FMV).

Our industry experience can help identify values for:

  • OEM trade-in
  • Lease buyout
  • Property tax valuation
  • Insurance
  • Replacement cost
  • Fair market assessment
  • Sale to doctor or third party

Receive current and accurate equipment appraisals for your capital equipment within 24 – 48 hours from time of submission.

Login:  www.manageresourcegroup.net

Project Planning 101

When a project is on the horizon I can’t emphasize the importance of proper planning to ensure a positive outcome and experience for all those involved.  Poor planning not only affects the project but will most likely have an impact on the bottom line and take a profitable deal south.  Poor planning = poor outcomes, it’s that simple.

Following are some key points to project planning:

  • As the project manager have a clear understanding of all aspects of the project
  • Establish clear objectives for the project
  • Outline the players involved and what their role will be to complete the project
  • Establish firm timelines for all parties involved
  • Try to identify the unknowns/obstacles and have a back up plan in place when those unforeseen hiccups appear
  • Make sure contractually that all parties involved in the project are held responsible for their share of the deliverables
  • Level heads prevail, don’t get emotional when challenges arise
  • See all aspects of the project through to the end

Each project is unique and will have its own set of challenges during the engagement.  Understand the goal and make sure everyone is working to achieve that goal in a cost effective manner with the end result in mind.  Proper planning = positive outcomes.