MRG Newsletter October 2019

Equipment Management is the Key to Cybersecurity

It seems like every week there’s another ransomware attack that cripples a hospital’s daily functions and puts patient information at risk, so cybersecurity an increasingly important issue to be on hospital administrators’ minds. Even smaller health care practices are filled with scanners, monitors, and PCs that all connect to one network and share massive amounts of sensitive data.

How do you manage and account for every piece of equipment in order to protect your network? Start with answering the following questions:

What equipment is on your network?  IT teams may not be as attentive to items that are used infrequently or out of service but still connected. An inventory of the medical equipment you have gives you a comprehensive picture of:

  • What is connected to your network
  • Where PHI is stored
  • Where assets are physically located for maintenance

Which equipment is most vulnerable?  Although newer equipment is more interconnected, outdated equipment may have fewer cybersecurity protections and therefore be easier to hack, allowing access to the rest of your network. The inventory should include:

  • Date of installation or manufacture (if applicable)
  • Software versions
  • Operating systems for anything with a PC
  • Condition assessment

This determines the age and usability of your equipment so you know whether they can be updated or should be considered for removal.

What is the plan to maintain equipment cybersecurity?  Once you know what equipment you have on your network and what condition they’re in, plans can be made for ongoing preventive maintenance:
  • Determine how software for PHI is upkept on each item (through the vendor, IT, biomed, etc.)
  • Use those routes to find and implement all possible updates
  • Regularly schedule checks for future system updates
If the equipment is no longer supported by the OEM or hasn’t had a new software version/OS in years, it may be time to replace it.
You’re only as strong as your weakest link, and with everything from pacemakers to fixed imaging systems connected to one network, it can be easy to overlook items that store patient data and leave weak spots in network security.
Adding these points to your facility management strategy ensures the control is back in your hands and maximizes protection against future cyberattacks.
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MRG Appraisal of the Month:
Haag Streit BM900 Slit Lamp
FMV: $6500.00
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Halloween Fun Fact:
Ohio has the most haunted places of any state, topping in at 111 sites. It’s not all historic houses and asylums though. Hauntings have been reported at Heather Hills Hospital in Chardon, Southwest General Hospital in Middleburg Heights, and Nationwide Children’s Hospital in Columbus.

ASC’s: When was the last time you conducted an inventory and assessment of your capital assets?

Your assets could be costing you more than they’re worth. Unaccounted equipment increases costs associated with preventative maintenance, storage, and insurance.
If it’s been more than 3 years, it may be time to update your ledger.
Many surgery centers don’t have an active ledger to work off of, but who has the time to go through every piece of equipment they own?
Manage Resource Group’s I&A services help with:
LEDGER RECONCILIATION
Did you know that past audits reveal only a 15%-20% match rate when reconciling against old ledgers?
  • Verify the assets located on the property
  • Easily track equipment and maintenance throughout its lifecycle
  • Add, amend, or delete line items as they come in/out of service to contain facility costs
EQUIPMENT CONDITION
Do you know what equipment should be replaced? What about which systems present a cybersecurity risk?
  • Capture demographics such as condition, age, software, etc.
  • Identify the systems on your network that may be weak spots for ransomware attacks
  • Determine which items should be upgraded or are no longer needed based on condition assessments
INSURANCE VERIFICATION
Are you paying too much insurance on your assets? Or not enough should potential litigation arise?
  • Appraise assets to better understand insurance requirements for the property
  • Make sure you’re covered for what you have installed and in-use
We Inventory and Assess All Assets
          – Medical Equipment
          – Instruments
          – IT Equipment
          – Furniture

 

MRG handles your I&A needs to keep you informed and empowered! To learn more, contact our equipment specialists at (888) 557-4797 or info@go2mrg.com.

Store or Sell: What your surplus is costing you

Decommissioned medical equipment is part of the equipment life cycle that many facilities find challenging. It is typical for equipment managers to be reactive on deciding what to do with these assets, waiting until after items are taken out of service to choose a method of disposition. However, this means that they are not necessarily making the most advantageous decisions, and equipment often ends up going to storage areas to collect dust.

 

Why is this the go-to? Time restraints and lack of market knowledge prevent proper asset management. Supply chain leaders often have a heap of responsibilities, so looking into the secondary market for equipment that isn’t actively bringing in revenue falls to the bottom of the pile, especially if it can’t be traded-in or lacks book value. They may not realize that doesn’t mean it can’t bring in returns from the resale market. In fact, more than half of all used equipment still has resale value, even if it’s not functional (it may sell for parts!).

Failing to find the proper avenue for disposition could be costing your organization more than you think. The money coming out of pocket for storing old equipment stacks up, as facilities end up paying more for material handling fees, warehouse labor, rented storage space, and possibly insurance on unusable assets if they’re not taken off the books. Sometimes hospitals use shell areas for storage that could otherwise be used for billable services.

The longer equipment sits in storage, the more it depreciates in value, making it less likely to be resold in the future and continuing the financial drain for years to come. Consider putting into practice a consistent strategy for asset appraisal before items come out of service to determine where the most value is. Why keep paying to store when you could be making money instead?

 

 

MRG Newsletter July 2019

Optimizing Your Equipment Buying Strategy

Hospitals and health systems regularly seek to upgrade their medical technologies but could lose money if they make reactive decisions regarding the older, existing equipment after it’s been replaced. A more proactive approach to this challenge is looking at the assets affected by change-outs as part of the initial buying strategy.
Especially with the rising popularity of multi-state health system consolidations, we encourage healthcare executives to utilize group-buy opportunities as an avenue to reduce capital spend and minimize the exposure capital equipment places on operational support throughout the equipment life cycle.
Purchasing
  • OEMs often give a discounted per-item price when bought in large quantities or with other modalities of equipment by the same manufacturer.
  • Individual facilities’ spending on repairs, disposable accessories, etc. can be better predicted and managed if using a consistent, established vendor.
Integration
  • A streamlined equipment fleet is more easily maintained by biomedical and clinical engineering teams. They learn to master those specific equipment pieces and gain the ability to oversee multiple sites as needed.
  • Training programs based on homogenized equipment can be implemented across facilities to help clinicians adapt more efficiently and knowledgably to the incoming technology.
  • The same level of technology is being used to support patient procedures, thereby standardizing the quality of care and achieving better clinical outcomes throughout the system.
Disposition
  • A third-party fair market valuation of assets displaced by new purchases can be compared against the OEM trade-in value to identify the best method of asset disposition.
  • Equipment is easier resold as a lot rather than 1-2 pieces here and there. Individual items could sell for only 10% of the equipment’s value, whereas turnkey project-based sales see net returns of up to 95%.

System-wide equipment change-outs may seem daunting and expensive at first, but they bring long-term cost efficiency as your health system grows. By being more strategic with equipment purchases, you will see improvements at every stage of the equipment life cycle and generate a higher return on investment for your bottom line. Email us at info@go2mrg.com to receive our whitepaper and learn more about our consulting services.

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MRG Projects:
  • Asset inventory and tagging for 16 locations of FL health system
  • I&A services for medical group acquisition in eastern PA
  • I&A services for surgery center acquisition in MI
  • OR resale project in southern OH
  • I&A services for pain management and surgery center acquisition in OH
  • 3-year PaidFirst Resale Agreement with OH health system
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MRG Appraisal of the Month:
GE Venue 50 ultrasound
Forced Liquidation Value: $9500.00

 

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MRG Fun Facts:
The most dangerous time to go to the hospital is the month of July. Death rates increase 8%-24% each July due to the most experienced medical residents graduating and leaving hospitals as the new physicians arrive.

Why More Physicians are Becoming Employees

Employed physicians now outnumber self-employed physicians

 

 

We are amid a healthcare landscape where doctors are now reevaluating their practice and migrating from physician-owned facilities to hospitals and hospital-owned facilities. While it’s been happening slowly, the highest rates of change occurred from 1988 to 1994 and 2012 to 2018. Given that physician movement was relatively stagnant in between these two periods, what has changed in healthcare to facilitate this most recent shift?

 

Looking closer at the stats, doctors are going from small practices of fewer than 10 physicians to larger practices of upwards of 50 physicians and are much less likely to start a new practice than join an existing one. It is likely that smaller practices are struggling to keep up with increasing healthcare costs and lowered reimbursement rates, and that starting a new practice is too risky and unpredictable in the current economic climate. Any kind of hospital involvement, whether partial or total ownership, is now more appealing to practitioners than independent practice, especially for young physicians (under 40) and women physicians.

 

These trends suggest that financial insecurity is the most influential factor that has been driving physicians to consider other employment options. For women physicians, hospitals can offer a host of benefits that support family life, such as paid time off and family insurance plans that are more robust than an independent practice could afford. Among the benefits are guaranteed wages and standardized payment rates that draw in the younger crowd, who struggle with the increased costs of living and rely on such financial security for survival. Independent practitioners already affected by the unstable market are joining hospitals or hospital owned organizations so that they have more of a financial buffer to cover costs of care and are ensured steady patient volumes to keep revenue flowing.

 

While most physicians still practice in small, physician-owned spaces, the number is dwindling and may continue to do so as hospitals and health systems seek out opportunities to increase their market share, clinical efficiencies, and geographic coverage. Even with the recent popularity of megamergers, physician practices and organizations are the primary targets for M&A activity within the next year.

Why Health Systems Should Invest in ASCs

 

Ambulatory surgery centers (ASCs) are growing exponentially in the healthcare market as we see hospital-based outpatient care shifting to freestanding surgical facilities. On top of the 23% growth of ASC outpatient procedure volumes over the last few years, experts predict another 16% growth through 2026 due to low cost to consumers, greater accessibility to life-saving procedures, and changing reimbursement rates from insurance providers. Some would argue that this is a threat to hospitals and that they need to now compete in an oversaturated market for surgical revenue. However, another approach could lead to revenue growth and an increase in quality across healthcare facilities.

 

Instead of focusing efforts on drawing in potential surgery patients to hospitals, health systems should follow the money and invest in new or existing surgery centers. Although these procedures are cheaper, it seems that the mass influx of patients and reduced operational costs for the facility would offset the loss of revenue from a hospital’s reduced inpatient and outpatient volumes. Both private payers and CMS have actually increased reimbursement rates to ASC procedures to combat the rising expenses in hospital outpatient settings that often leave hospitals indebted and at risk of closure. These factors also increase revenue to physicians, leading them to seek either employment or equity stake in ASCs as they see this trend continue.

 

Since consumers, payers, and employees all benefit by making this shift, it makes sense for larger systems to invest their resources in these facilities as it would improve their clinical quality and brand recognition. Health systems and hospitals can affiliate with ASCs through a variety of means, such as joint ventures, timesharing, and acquisitions, in order to profit from this market. Regardless of the method, they too can benefit from a changing healthcare environment instead of fighting it.

 

Read more about the ASC market:

https://www.advisory.com/daily-briefing/2019/03/05/asc-shift

https://www.reliasmedia.com/articles/143809-asc-market-growth-on-track-for-2019-and-beyond

MRG Newsletter March 2019

Managing Assets: How to Plan for a Facility Closure

Health systems consistently see hospitals coming in and out of network via acquisitions, consolidations, or closures. But since most of the focus is on planning for acquisitions, many fail to properly prepare for their closing facilities. Hospital closures are happening more frequently and for a variety of reasons. Financial challenges are a leading cause, such as with many EmpowerHMS facilities recently, where they are closing or reducing services in hospitals across several states. Health systems may also consolidate services from one hospital to another existing or newly built medical facility, where closures can range from a single department to an entire building.
     Regardless of reason or scope, health systems need to consider how to handle their assets in the event of either a sudden or planned closure. The main points to plan for are the inventory, transference, and liquidation of assets.
1.     Inventory of existing assets
  • Know what assets closing facilities have and what condition they are in. Items in better condition could be re-purposed whereas worn-out items may be thrown out or recycled immediately.
  • Inventory assets in surrounding locations to know where there is need for equipment without having to ask numerous department heads.
  • Compare inventories and asset conditions to determine which assets will be kept and which ones will be disposed of in a closure.
2.     Transference of assets to other facilities
  • Identify where usable assets will go based on need in other facilities or to the facility where services will be consolidated.
  • Determine how equipment will be transferred between facilities. Does your in-house materials team have the tools to move larger and multiple assets, or will you need to outsource the moving process?
  • Reconcile ledgers when equipment is removed or replaced so each facility’s books are up to date, ensuring that they are not paying for nonexistent assets.
3.     Liquidation of remaining assets
  • Include assets from the closing facility and any assets displaced by transferred equipment across sites
  • Get a fair market valuation for all disposable assets. Knowing what each item is worth will inform the best route for disposal – auction, resale, or donation.
  • Determine a consistent method of sale for the most profitable return on your capital equipment. Are you going to bid items out individually or contract a third party to handle resale?

Once these processes are addressed, health systems can establish a system-wide plan to ensure maximum efficiency with ongoing and future closures. Since these transitions will always happen in the healthcare sector, they can be made easier and more profitable by taking this proactive approach to changes in facilities. For more information on inventory, assessment, and liquidation services, please visit our website at www.go2mrg.com.

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MRG Projects:
  • Technology change-out of Siemens Analyzers for 3 hospitals in MI
  • OBGYN audit for practice acquisition in OH
  • Cardio & Vascular audit for practice acquisition in OH
  • Remote audit for practice acquisition in WV
  • Urology audit for practice acquisition in OH
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MRG Appraisal of the Month:
1 qty Olympus CYF-4 flexible cystoscope
FMV: $2000.00

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MRG Fun Facts:
St. Jude Children’s Research Hospital, which has treated thousands of children with cancer, is not religiously affiliated! It was founded by actor Danny Thomas because of a promise he had made to the patron saint of lost causes after he found success in Hollywood.

Why Are Hospitals Missing Payroll?

Companies like Americore and EmpowerHMS are missing payroll at several hospitals across the country. Americore’s Ellwood City Hospital in Pennsylvania missed payroll multiple times over the last year and, more recently, has been shortchanging workers’ paychecks by only giving them minimum wage. Missouri-based EmpowerHMS has also been late in meeting obligations including payrolls, rents, and utility bills at facilities across the country, most notably in Midwestern states such as Missouri, Kansas, Arkansas, and Oklahoma. Their facilities have had to reduce services and lay off employees, some closing their doors indefinitely.

https://www.kansascity.com/news/business/health-care/article223265995.html

https://www.beckershospitalreview.com/finance/pennsylvania-hospital-shortchanges-workers-paychecks-again.html

Healthcare used to be a stable and reputable career field. Now with rural hospitals at an all-time high of 1 in 5 facilities at risk of closure and an increase in instances of missed payrolls, the future of healthcare jobs is perilous and leaves a lot of workers at risk. With EmpowerHMS, it seems to boil down to a systemwide management disruption, as these financial troubles come amid a legal investigation into their lab services. Across other hospitals, however, lack of reimbursement from CMS is often cited as the predominant factor in these missed payments.

Is this a result of a declining healthcare market or a mismanagement problem at a corporate level? Is it limited to only one/a few health systems or is it becoming a trend we will see more of? And finally, what will healthcare workers do if this trend of missed payrolls continues? The search for answers is ongoing, and we hope to gain clarity soon.

Hospital M&A: “Good or Bad?”

The healthcare market has seen ongoing consolidation the past 15 years, and we will continue to see mergers and acquisitions within the healthcare landscape. It is not the intent of this blog to take a position on M&A being “good or bad” but rather to provoke thoughts from the reader on where things are heading in healthcare.

https://www.axios.com/rep-jim-banks-hospital-consolidation-bill-c08e1a68-8729-412e-a1f8-9ea5717130da.html

MRG has provided services surrounding audits for acquisitions for many years.  We have seen markets shift from multiple stand-alone hospitals competing in the same geographical area to one or two health systems taking over the market through hospital acquisitions or facility closures.  MRG has also witnessed doctors go from wanting to be in private practice to being acquired by hospitals and hired as an employee of health systems.

The reality is that the market seems to continue down this path of consolidation.  We are now beginning to witness mega health systems spanning multiple states, some to a national scale.  The question becomes: is this fair competition for stand-alone hospitals or physicians who want to maintain their autonomy?

The attached article indicates that the government may have concerns with monopolies forming from M&A activity and creating unfair leverage for larger health systems.  I think one could make a list of positives and negatives for both sides of this argument.  Will M&A activity create higher quality of care and minimize cost to the consumer?  Or will lack of  regional competition drive prices up and limit access for healthcare consumers? These are the questions we urge our readers to consider.

MRG Newsletter January 2019

Navigating the Hospital Closure Crisis

At least 90 rural hospitals across the United States have closed since 2010, with an additional 600 that are vulnerable to financial crisis and potential closure. Trends show that a majority of these closures have occurred in southern states, with Texas, Tennessee, and Georgia leading with the most closures in the last decade, and in states that have not expanded Medicaid. Critical access hospitals and for-profit health organizations were especially at risk, making up 40% of the closures already.
Rural hospital closures typically occur when hospitals have negative margins and are unable to cover fixed costs. Two notable changes in rural demographics hint at a loss of revenue:
  1. The populations these hospitals serve are older, poorer, and have more complicated and chronic health issues than those in urban communities. They are also less likely to be insured, leading to a rise in uncompensated care.
  2. People are moving from rural communities to urban living, meaning rural hospitals generally have fewer beds filled at a time to cover costs.
In addition to losing the existing patient population and compensation for care, rural hospitals also lack funds to repair facilities and update aging clinical equipment. Their outdated assets make them less marketable to attract new patients, who instead go to larger health systems that offer the newest in medical technology and a wider range of outpatient and specialty care.
So what can at-risk hospitals do to mitigate financial loss and potential closure? Gaining an understanding of existing assets and facilities could be a good place to start. The process consists of:
  • an Inventory of what items and facilities the hospital already has
  • an Assessment of what condition they’re in and what those items are worth.
This is especially useful if an independent hospital is looking for a larger health system to acquire the facility.
If there are no exiting plans for consolidation, rural hospitals can make themselves more marketable to prospective buyers and health systems by targeting limited funds to the most critical updates or towards specific services that other health systems may lack in their network and the surrounding area. At-risk rural hospitals may also be purchased and transformed into outpatient facilities. Using the asset evaluation, hospitals can determine which departments are no longer vital to an outpatient setting, liquidate the items that will not be needed, and use the return towards improving the remaining clinical and outreach services for incoming patients.
Even though many rural hospitals are still at-risk, we now know the signs and trends that ultimately lead to closure. In addressing asset management and taking proactive approaches to finance and consolidation, these hospitals can open up more possibilities to sustain services and provide for their communities. To learn more about asset appraisal, go to www.go2mrg.com.
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MRG Projects:
  • I&A service for KY Health System
  • Remote audit for MI Health System
  • I&A of multiple practices for MI Health System
  • Resale Service Cleanout Project for MI Health System
  • Resale Service for OH Health System
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MRG Appraisal of the Month:
1qty 2003 GE Lightspeed 16 slice CT Scanner
Fair Market Value: $102,500.00

 

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MRG Fun Facts:
Cleveland physicist Dayton C. Miller at the Case School of Applied Science developed his own x-ray machine and completed the first x-ray scan of an entire human body – his own – in 1896. This technology drives everything from MRIs to CAT scans today.

How Competition in Healthcare is Ruining Rural Hospitals

https://www.beckershospitalreview.com/finance/the-rural-hospital-closure-crisis-9-things-to-know-110118.html

According to this article in Becker’s Hospital Review, the United States is facing a rural hospital closure crisis. The article lists important trends on these closures: how many, where, and what kind of hospitals face the greatest risk. These trends lead me to believe that these hospitals are mostly critical access facilities that don’t compare to the modernity and versatility of larger health systems.

 

Indeed, health care systems that take on a value-based approach attract more patients. They are making themselves more marketable to patients by providing a wide variety of health services in smaller facilities and using the most up-to-date equipment. Even when the hospitals are further away from rural citizens, they are able to bring new patients into their health system with specialty care facilities, and that encourages patients to continue their healthcare with that system regardless of distance.

 

Singular critical access hospitals don’t have the resources to reach out to more patients. They’re there when you need them and in emergencies, but cannot compete for patients with less money for updating and expanding facilities. They also have less of a financial cushion to take on uncompensated care. The rural communities they serve are older, have more complicated health conditions, and are more likely to be uninsured. These people need critical care, but these hospitals aren’t bringing in enough business to cover costs, with almost half of beds remaining empty.

 

While critical access hospitals are a vital part of any rural community, their lack of resources to appeal to new patients becomes their downfall when faced with the competition of comprehensive care systems with consolidated finances.

MRG Newsletter August 2018

Nontraditional Partnerships Part II: Timesharing in M&A

 

The Timeshare Arrangements exception to Stark Law permits the sharing of space, equipment, supplies, and services on non-exclusive leasing terms between healthcare providers. As an alternative to a full-time lease, timesharing makes it easier for physicians and hospitals to share resources on an as-needed basis and expand available services for patients without transferring ownership of properties.

 

 

So you’ve decided to timeshare or lease your physician practice to a healthcare system. Great! There are many reasons and benefits to doing so, but the tricky part is navigating the compensation arrangement in order to protect your interests as a business owner and maximize returns for your practice. Here’s what you need to know:

 

Set in advance the premises of the arrangement

  • Timesharing grants a license, or permission, to the lessee to use space or equipment instead of possessory interest, with the leaser remaining in control of assets.
  • Determine which resources are going to be shared with the lessee, how often these resources are shared, and for how long.
  • Equipment, space, staff, items, supplies, and services should all be covered in this part of compensation negotiations.

Appraising your assets

  • Timeshare compensation must be consistent with fair market value (FMV) and exclude volume and value of patient referrals.
  • Get an accurate appraisal of fixed/capital assets (equipment), real estate (space), and business costs (staff and services) to know what you should be asking for in terms of compensation.
  • Accurate appraisals of assets, with a timeshare or lease arrangement, helps avoid the high valuations of property and assets that could deter a health system from making an acquisition.

Determining compensation

  • Stark law exemption only covers flat-fee or time-based compensation to avoid incentivizing overutilization and patient steering.
  • Use this in conjunction with the FMV of your assets to know how much to ask for in compensation negotiations with the lessee.
  • Note that AHA is currently pushing for Stark Law reform and exceptions to better accommodate a coordinated, value-based care model and promote a team environment, so keep an eye out for these changes and how they may affect your arrangement.

Though working out leasing arrangements can be grueling and confusing for some, getting a better understanding of how much your interests and assets are worth can help protect your business and foster better relations with the health systems you’ll work with. To learn more about asset appraisal, go to www.manageresourcegroup.net


MRG Projects:

  • I&A service 9 Lab Departments for KY Health System
  • I&A service for Fitness Center in KY
  • I&A service for 21 Clinics in OH
  • Liquidation service for Lab Department in OH

MRG Appraisal of the Month:

Siemens Advia Centaur XP Analyzer

FMV: $21,000.00

 


MRG Fun Facts:

Let there be light! Cleveland, OH was the first city to be lit electrically in 1879. It’s also the first to use an electric traffic signal, installed on Euclid Avenue and East 105th Street.

 

 

 

Manage Resource Group, Inc. has updated our email addresses

Manage Resource Group, Inc. is pleased to announce that we have updated our email addresses to make it easier for clients to contact us.
Please update your records with the new email addresses:
Brad Andrew     bandrew@go2mrg.com
Brian Hoehn      bhoehn@go2mrg.com
Celeste Weise    cweise@go2mrg.com
Dave Holy           dholy@go2mrg.com
General inquiries can be sent to:
Thank you,
Manage Resource Group, Inc
682 W Bagley Rd #B15
Berea, OH 44107
Phone: 888-557-4797

The Key to Profiting from Physician Acquisitions

Physician group acquisitions are still on the rise in healthcare.  Hospitals and health systems have been losing money annually on physician contracts and enterprises. The biggest problem is the lack of a clear and consistent physician acquisition strategy. One health care system changed their strategy 5 times in 8 years, resulting in a $100 million loss per year. Hospitals tend to buy up physician practices by region, by specialty, etc., and tend to change strategy as a reaction to the revenue loss and the changing economic climate.

We have seen recently a more proactive approach to this problem starting at the initial contracting and acquisition phase, rather than solving the revenue loss through reevaluating existing physician contracts. Physician practices have been engaging in timeshares and other nontraditional partnerships as they are added to a health system’s clinically integrated network. These partnerships consider the goals of all parties involved, encourages dialogue and collaboration between parties, and benefit in ways that align with some of the suggested strategies and solutions.

Health systems first need to define and enact a consistent, strategic rationale for partnering with physicians. They need to account for the expected return on operational losses and hospital revenue generated from physician recommendations. Does it make sense financially to fully acquire the practice, or should the hospital consider a leasing option? After determining a strategy,  set corresponding goals, either value or performance based, across the system. Lastly, incorporate these goals into physician compensation and incentives, insurer contracts, support systems and operations, and motivation strategies for their employed and independent physicians as ways to manage and increase revenue.

 

Harvard Business Review has a good article on the physician acquisition strategies, to read more, go to:

https://hbr.org/2018/05/do-most-hospitals-benefit-from-directly-employing-physicians

MRG Newsletter May 2018

Nontraditional Partnerships in M&A

 

 

Manage Resource Group continues to see a spike in activity associated with I&A services and has noticed that hospitals and providers are looking at nontraditional partnerships within M&A activity.

 

Mergers and acquisitions between health care providers have more than doubled in the last ten years, with a particular rise in nontraditional partnership transactions, such as:

  • Joint venture agreements
  • Minority investments
  • Clinical affiliations
  • Timeshare agreements

Traditional partnerships were driven by the needs of smaller organizations and physician practices, where they could improve clinical programs and services by merging with a larger health system. The move to nontraditional partnerships stems from long-term care strategies and value-based care across all organizations, with health systems leading the way in expanding their reach to patients and implementing these ideals across facilities.

 

Changes in healthcare partnership are also facilitated by changes in health services legislation, especially in terms of leasing arrangements for healthcare providers. Stark Law required that physicians enter a formal lease providing exclusive use of their premises and equipment to the lessor, usually a hospital or physician group. These leases had a one year minimum and prohibited the physician and lessor from sharing space and equipment during the term.  This led to inefficient, inflexible, and impractical arrangements for all parties involved.

 

In 2016 the Center for Medicare and Medicaid Services added a Timeshare Arrangements exception to Stark Law, permitting the sharing of space, equipment, supplies, and services on non-exclusive leasing terms between healthcare providers. As an alternative to a full-time lease, timesharing makes it easier for physicians and hospitals to share resources on an as-needed basis and expand available services for patients without transferring ownership of properties.

 

Hospitals and health systems will continue to make strategic alignments with providers along the continuum of care allowing for creative teamwork within the industry. Such partnerships result in the centralization of essential functions such as IT, purchasing, and human resources for larger organizations, while increasing resource availability and data collection power to small physician practices.

 

In a continually consolidating healthcare environment, traditional mergers and nontraditional counterparts should all be considered and weighed to determine the best route of action to fit the needs of physicians, hospitals, and patients.


MRG Projects:

  • I&A services for Respiratory Clinic in KY
  • Desktop Appraisal for Diagnostic Imaging Group in WI
  • Resale and salvage clean sweep project for OH Hospital
  • Remote I&A service for MI Health System

MRG Appraisal of the Month:

1 qty Siemens 1.5T Espree MRI System with Syngo A40 software

FMV: $600,000.00


MRG Fun Facts:

Many hospitals in China don’t label the fourth floors of their buildings because the words “four” and “death” are too similar in Chinese.

Mergers and Acquisitions are off to active start for the 1st quarter of 2018

https://revcycleintelligence.com/news/healthcare-mergers-acquisitions-activity-strong-in-q1-of-2018

Manage Resource Group has seen a spike in activity for 2018 from clients they have worked with to provide tangible asset inventory and appraisal services.  As the merger and acquisition activity continues to heat up, we thought it might be a good opportunity to review a few valuable points if your facility plans to engage in M&A as part of their strategic initiative.

 

Inventory & Appraisal Services for FFE/Tangible Assets

When selecting a firm to conduct I&A work, make sure of the following:

  • They are using USPAP Uniform Standards of Professional Appraisal Practice for FMV
  • They provide a third party unbiased/objective view of the assets
  • Request examples of deliverables showing reports and methodology to the valuation engagement
  • Request that firms outline their process for engagement and expectations for timelines to conduct site visits and sending deliverables
  • Request references outlining comparable projects

Understand the appraisal methodology that will be applied to the assets.  Fair market value is the estimated value of an asset between a willing seller and a willing buyer.

  • Fair market installed/in-use value is typically used for continued use of the asset in its current state
  • Fair market liquidation value is typically used if the assets needs to be liquidated to the open market

Consider what demographics will be captured on assets during the inventory.

  • Facility, Room, General Description, Manufacture, Model, Serial Number etc. should typically be included
  • Obtain a condition assessment of the asset to understand its viability after the purchase

There are many scenarios to providing asset valuations but applying some of the general guidelines outlined above will help you determine the best direction for your organization.  If you are interested in learning more about tangible asset valuations, please contact one of MRG’s sale professionals at 888/557-4797 or info@manageresourcegroup.net and we would be happy to discuss needs or questions you might have.

Do hospitals donate too many of their supplies?

 

 

Hospitals donate millions and millions of dollars worth of disposable supplies to charitable organizations each year.  They send these supplies to companies who will sort and send the items to needy healthcare organizations throughout the world.  Mostly, recipients are third world hospitals who have doctors visiting on medical missions.  Donation shows a hospital’s willingness to do good for other facilities while also receiving a tax break from Uncle Sam.  However, hospitals may be donating too many of these supplies.

There is a large marketplace for in date, out of service supplies/disposables, especially supplies used in the Operating Room like staplers, trocars, single use handpieces, endomechanicals, etc.  These items can be resold by the hospital for cash.  While the tax benefit with donation is nice, cash from resale can be used in many different ways. The cash received can be used to upgrade departments or purchase newer equipment and needed supplies.

Another factor to consider when deciding to donate or resell disposables is the advanced technology.  Some of these disposable items are paired with the latest, most advanced technology version of equipment.  Thus, these disposables are useless when sent to a third world hospital where their equipment is generations older.  Charitable organizations are aware of this issue and know what items they can send overseas.  If an item is not compatible, the charity will resell on their own and use the cash how they see fit.

Donating surplus disposables can be a good thing for hospitals.  However, it is not always the best avenue for all of the supplies.  A hospital must maximize its resources, and determining what disposables to resell and which to donate will make a hospital more efficient.

To learn more, go to www.manageresourcegroup.net

Manage Resource Group Adds New Member to the Team!

Manage Resource Group would like to announce our newest team member, Celeste Weise.  Due to our growing customer base and increased demand for inventory/appraisal services, Celeste will be vital in supporting projects throughout the country.  She will manage marketing and operations for MRG.

Celeste brings years of customer service and data analysis experience to Manage Resource Group.

She can be reached at 440-623-9403 or cweise@manageresourcegroup.net

PaidFirst Consulting Service

Manage Resource Group, Inc.
is pleased to announce the launch of:

  

As the healthcare industry continues to see consolidation, health systems are increasingly looking for capital group buy opportunities and standardization of capital purchases across their network of hospitals.

If your system is looking at group buy opportunities or streamlining clinical technology across the organization’s equipment fleet, Manage Resource Group’s consulting service increases return on investment for displaced assets/systems.

• Fair market valuation of capital assets & systems displaced by new purchases
• Trade-In validation on OEM credits for new purchases
• Turn-key project based sale of assets impacted by new purchase
• Transparent sale process
• Net returns up to 90 percent from sales of impacted equipment/systems
• Secure payment (money in hand before assets are removed from property)
• No shipping, material handling or warehouse fees

Our team of professionals bring more than 35 years of experience working with providers to assist with capital valuation and reselling assets impacted by group purchases and technology transition. We will generate the highest net returns for your organization in a safe and transparent manner.

  • Medex/Alaris pump project generated $640,000 gross sales, net return to client $576,000
  • Medrad injector project generated $159,000 gross sales, net return to client $143,100
  • Olympus scope project generated $154,340 gross sales, net return to client $131,189
  • Mizuho surgical table project generated $59,000 gross sales, net return to client $53,100

 

To learn more about MRG’s services call one of our sales consultants at:

888/557- 4797
or
Email us at info@manageresourcegroup.net

MRG Newsletter November 2017

Decommissioned assets: key areas of impact


It’s not uncommon for hospitals to be reactive around decisions associated with reselling decommissioned assets. This mindset starts with replacement budgets and runs through the time when equipment is retired and removed from service.

When replacing capital equipment there are 3 key area’s that can impact the decision making process:

Annual replacement budget
• Negotiating new purchases with the OEM/Trade-ins
• Removing the decommissioned asset from service

Identifying valuation data at each of these key phases during the equipment disposition life cycle can provide valuable information to support decision making. This allows the hospital to take a more proactive approach with the disposition process.

Annual replacement budget: When budgets are being discussed and capital is being allocated toward new equipment purchases, it is beneficial to have a third party reseller assist with providing a replacement budget valuation. This gives the hospital a snapshot of marketability each asset has in the secondary marketplace. Does the asset have potential resale value versus discarding the asset once decommissioned? This snapshot doesn’t ensure the asset will retain the secondary market value applied nine months down the road but does provide valuable information as you plan to replace the asset prior to negotiating the new purchase.

New purchase negotiations/trade-ins: It’s not uncommon for hospitals to trade-in assets that are being replaced with new purchases. Many times the OEM will offer a discount off the new purchase to account for trade-in value. The challenge is most hospitals have no idea if the trade-in offer is fair which can leave money on the table. Knowing the fair market value of an asset prior to negotiating the trade-in provides information that can be leveraged during the negotiation process. Identifying the fair market value of the asset can assist with increased trade-in credits from the OEM and also provides the hospital an alternative option by selling the asset on the secondary market if the trade-in credit is too low.

Assets removed from service: If the hospital has taken either of the previous two steps then it should have a good idea if the decommissioned asset has viability on the secondary market. Decisions should already be determined, outlining the best course of direction for the asset: trade-in, repurposed within the system, resold via secondary market, donated or salvaged. There will always be unexpected one-offs that come out of service various reasons, but having decisions made prior to an asset being decommissioned will minimize the need to put assets into storage or undervaluing the asset by accepting low purchase offers from vendors.

Being proactive with assets impacted by new purchases helps hospitals address challenges surplus equipment can place on decision makers. Having answers to questions surrounding capital equipment creates increased potential for trade-ins, minimizes storage space, and increases return on investments. It also maximizes efficiencies for the departments overseeing the disposition process. An important note when selling any surplus equipment, make sure you have cash in hand before the asset leaves the property and don’t pay fees for transportation or warehousing by third party sellers.


MRG Update:
Mange Resource Group, Inc. is pleased to announce the launch of their new:

For more information on contact one of our sales specialists at 888/557-4797


MRG Appraisal of the Month:
1qty 2008 Fluoroscan Insight 2 Mini C-arm
-FMV: $17,500.00


Thanksgiving Fun Fact:
Thanksgiving is the reason for TV dinners! In 1953, Swanson had so much extra turkey (260 tons) that a salesman told them they should package it onto aluminum trays with other sides like sweet potatoes — and the first TV dinner was born!

 

Why should hospitals conduct a facility-wide capital asset inventory?

When making daily decisions on capital assets it’s imperative to utilize accurate data. As the old saying goes “information is power”. Old or corrupted data presents many headaches and challenges for administrators, finance, clinical staff, biomed and ultimately the ability to provide the best patient care possible.

Frequently Asked Questions (FAQs):

Q: Are we utilizing an asset ledger that is accurate and current?

A: It’s not uncommon for a hospitals asset ledgers to contain decommissioned assets, renovations, leases, operational expenses etc. This can expand a ledger line item count by 6 times that of actual assets located in the facility.

Q: Is our ledger sortable and able to search specific equipment demographic fields?

A: Many hospital ledgers do not separate equipment information into individual fields. I.E. make, model and description are identified under one field which creates an inability to sort on specific fields criteria. This also make it very difficult to reconcile the ledger on a regular basis.

Q: When was the last time our hospital conducted a facility-wide inventory?

A: If the hospital has not conducted a facility-wide inventory for more than 5 years the ledger may show an inaccurate view of what is physically located in the property. Past audits have revealed a 15%-20% match rate when reconciling against old ledgers.

Q: Does our facility have a barcode tag (unique identifier) applied to assets that is streamlined for use by all departments?

A: Utilization of single barcode tag (unique identifier) for all departments provides ease of tracking when conducting preventative maintenance, ongoing reconciliation and budgeting

Q: Are we confident that the equipment located in the facility is accounted for?

A: Equipment residing in the facility should be accurately accounted for. Unaccounted equipment increases cost associated with insurance, preventative maintenance, storage and potential litigation if a patient is harmed.

Q: Do we have a detailed process outlining adds/deletes to the ledger as equipment enters and leaves the property?

A: Detailed process and procedures ensures hospital staff are following appropriate guidelines when equipment arrives and leaves the facility. This eliminates the chance of equipment bypassing proper clinical inspection when being put into service and detailing what happens to the asset when decommissioned

MRG Newsletter September 2017

FMV Appraisals/Definitions

 

Hospitals and healthcare facilities require appraisals on a daily basis to determine FMV (Fair Market Value) on capital assets.

Uniform Standards of Professional Appraisal Practice (USPAP) is considered the quality control standards applicable for real property, personal property, intangible assets, and business valuation appraisal analysis and reports in the United States.

We thought it would be beneficial to share with clients the different types of appraisals and definitions that are used when applying FMV to capital assets:

Fair Market Value – Installed
FMV-I is the estimated amount, expressed in terms of money, that may reasonably be expected for an installed property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, including installation, as of a specific date. (This amount includes all normal direct and indirect costs, such as installation and other assemblage costs, to make the property fully operational but does not have to be supported by the business earnings.)

Fair Market Value – Removal
FMV-R is the estimated amount, expressed in terms of money, that may reasonably be expected for a property, between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts, as of a specific date, considering the cost of removal of the property to another location.

Fair Market Value in Continued Use
FMV-CU is the estimated amount, expressed in terms of money, that may reasonably be expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, including installation, as of a specific date, and assuming that the earnings support the value reported. (This amount includes all normal direct and indirect costs to make the property fully operational and may not readily pertain to aircraft.)

Fair Market Value
FMV is the estimated amount, expressed in terms of money that may be reasonably expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date.

Forced Liquidation Value
FLV is the estimated gross amount expressed in terms of money that could be typically realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.

Orderly Liquidation Value
OLV is the estimated gross amount expressed in terms of money, that could be typically realized from a liquidation sale, given a reasonable period of time to find a purchaser(s) with the seller being compelled to sell on an as-is, where-is basis as of a specific date.

Salvage Value
Salvage Value is the estimated amount expressed in terms of money that may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere, as of a specific date.

Scrap Value
Scrap Value is the estimated amount expressed in terms of money that could be realized for the property if it were sold for its material content, not for a productive use, as of a specific date.

MRG Projects:
I&A services for M&A in OH and KY

MRG Appraisal of the Month:
1qty GE V-Scan handheld ultrasound
-FMV: $4000.00

 

 

 

MRG Fun Facts:
Jimmy Carter was the first president to be born in a hospital.

WE BUY MED SURG INSTRUMENTS, SUPPLIES & IMPLANTS

WE BUY
Synthes, Ethicon, Covidien, Alcon, Arthrocare, Mitek, Linvatec,
Smith & Nephew and more

Send us your list today: info@manageresourcegroup.net


Surgical Instruments:
Mini Drivers, Drills, Handpieces, Forceps, Surgical Sets etc.
Surgical Supplies:
Auto Sutures, Tissue Sealers, Shears, Staplers, Surgical Mesh, Sutures etc.
Implants:
Rods, Lags, Plates, Pins, Screws etc.


Manage Resource Group, Inc. is interested in purchasing your Med-Surg Instruments, Supplies and Implants.
Send us a list of out of services items that have not yet expired (within 60 Sixty Days of expiration) and we will provide you a purchase offer.  Supplies need to be in original sealed packages

Applying Value to Equipment

Applying Value to Equipment

When your facility decommissions assets and is looking to sell surplus equipment it is important to understand how value is being applied to the equipment you are selling.  This helps both the seller and buyer agree on an acceptable purchase price.  Outlined below are a few different definitions that are used for capital assets:

Fair Market Value (This is the standard definition applied when appraising an asset)

FMV is the estimated amount, expressed in terms of money that may be reasonably expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date.

Forced Liquidation Value (This definition is applied for facilities under bankruptcy or a buyer with an immediate need to sell)

FLV is the estimated gross amount expressed in terms of money that could be typically realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.

 

Orderly Liquidation Value (This definition is commonly used when selling surplus equipment)

OLV is the estimated gross amount expressed in terms of money, that could be typically realized from a liquidation sale, given a reasonable period of time to find a purchaser(s) with the seller being compelled to sell on an as-is, where-is basis as of a specific date.

When selling surplus medical equipment buyers are typically applying some form of liquidation value with understanding that the asset is being sold in “As-is, where-is condition.”  Understanding how fair market values are being applied to your equipment allow for a smoother transition during the sale process.

Hospital consolidations impacting capital equipment

2017 continues to be active with hospital consolidations.  Many stand-alone hospitals are being acquired by large health systems to gain market share and expand their geographical reach.  In many cases when consolidation occurs there is an influx of capital dollars infused into the acquired hospital.   These funds are used for equipment upgrades and equipment standardization to match product lines that are being used in the health system.  When new capital equipment is purchased, following are key points to consider during the technology transition process:

  • Create a timeline/calendar outlining incoming and outgoing equipment in specific areas
  • Have a clear understanding of equipment that will be decommissioned with any new purchases
  • Identify potential resale value for end of life equipment on replacement budgets
  • Determine what is the best course of direction for displaced assets:

– Trade-in to the OEM for new purchase

– Re-deploy internally to a sister facility

– Sell on the secondary market

– Donate

– Salvage

  • Develop a project plan that outlines what areas of the hospital will be impacted and personnel that will be involved in the transition process.
  • Who will the key players be for new equipment arrival and decommissioned assets?
  • Determine areas within the hospital that can be utilized for staging incoming and outgoing equipment to minimize patient and employee disturbance
  • Identify fair market value on assets impacted by new purchases to better negotiate potential trade-in with OEM
  • If secondary market values dictate selling the assets, begin to identify potential buyers before equipment is removed from service

 

Integration of a hospital into a new health system can have a major impact on capital equipment.  Being proactive once the transition occurs will help decisions on assets displaced by new purchases.  Having a plan in place for decommissioned assets will minimize space requirements while maximizing potential returns on surplus equipment.

MRG Projects:  

Inventory and tagging multiple long-term rehab facilities in Kansas.  I&A services for acquisitions in OH, MI and KY

MRG Appraisal of the Month:

1qty Philips IE33 Vision Rev E Ultrasound with S5-1/L9-3/C5-2/D2CWC Probes FMV: $31,000.00

MRG Fun Facts:

You can pretend to be a patient at the Heart Attack Grill in Las Vegas. Diners must wear hospital gowns and wrist bands, and menu items include the quadruple bypass burger and flat-liner fries. Drinks are served in mock syringes and giant pill bottles.

Turn idle assets into cash

 

   Idle assets tie up valuable storage space, depreciate in value each day they sit idle, and may be costing the facility money if still on the operating ledger.

Look to the experienced staff of Manage Resource Group, Inc. to provide a solution for idle assets.  Our team of professionals have helped many clients obtain the highest possible return on capital assets including all modalities of movable medical devices and imaging equipment.

MRG can help:

  • Identify FMV for your assets
  • Pay top dollar for your surplus equipment
  • Coordinate pick up with no shipping/handling/storage fees

    If you are currently storing idle assets, give MRG a call, and our team would be happy to review any available assets.  You can also email equipment lists to info@manageresourcegroup.net and a representative will contact you to discuss potential revenue returns.

Manage Resource Group is pleased to announce our newest team member, Glenn Sufilka.

Glenn will be working with our sales division as a lead generator and will provide operational support on MRG projects throughout the country.

Glenn brings years of experience as a technical support specialist/logistics analyst for Nissan North America and has vast experience in the hospitality industry.  Glenn is happily married with 2 children residing in Vermilion Ohio.

Manage Resource Group, Inc. is excited to add someone like Glenn who is a highly driven outgoing professional to our team.

He can be reached at 888/557-4797 Ext. 3 or gsufilka@manageresourcegroup.net

 

Manage Resource Group, Inc. Celebrates Ten Years of Business

 

Manage Resource Group, Inc.

 hit a mile stone this month.  We are proud to announce that we are celebrating ten years of business.  It’s been a pleasure to serve our clients over the past ten years and we look forward to the next ten years as we renew our commitment to provide the best inventory, appraisal and resale management services our customers have come to expect.

 

We owe our growth and longevity to each one of our clients. Our goal every day is to offer services that will assist providers with daily management of their equipment needs.

Receive 10% off your next valuation service

Receive 10% off your next valuation service

Reference Promo Code MRG10

Manage Resource Group, Inc. will be celebrating 10 years of business on April 2, 2017 What better way to celebrate than to give clients the opportunity to save 10% for 10yrs of business on your next valuation service to include:  Onsite Valuation Service, Remote Appraisals, Desktop Appraisals & Appraise Now™ Submission

Reference Promo Code:  MRG10 when you contact us to receive 10% off  

Call one of our service specialists at 888/557-4797

 or

Email us at info@manageresourcegroup.net

Lead Generator – Operational Support

 

Mange Resource Group, Inc. is looking to fill a part-time entry level position to assist with lead generation and operational support for field projects.

Responsibilities:

  • Generate leads through contacting hospitals/non-acute sites/service companies via telemarketing & email marketing
  • Work with current business partners to locate available surplus medical equipment
  • Record information in MRG contact database
  • Report lead opportunities to MRG personnel
  • Provide operational support for field projects (ability to travel required)
  • Able to work from our Berea, Ohio office location

Qualifications:

  • Telemarketing experience preferred but not required
  • Effective and excellent interpersonal and communication skills
  • Be proficient in Microsoft (Word, Excel etc.)
  • An equal Opportunity/Affirmative Action Employer M/F/D/V

 

About Manage Resource Group:

Manage Resource Group, Inc. has over 30 years of experience working with healthcare providers to create and oversee comprehensive programs that assist with management of current and future equipment needs. MRG Services are tailored to the individual needs of our clients, instilling confidence in their decisions while generating measurable results.

Inventory Services: Identifying and maximizing an accurate inventory of capital assets is crucial to health care providers of all sizes.

Appraisal Services: Appraising capital assets provides clients the information necessary to determine fair market values.

Resale Services: Eliminating the uncertainties associated with selling decommissioned assets in a fragmented marketplace by utilizing a risk free approach.

 

Interested candidates can email resumes to the attention of hiring manager at info@manageresourcegroup.net

Reference our website at: www.manageresourcegroup.net

Manage Resource Group, Inc. Launches New Website

Manage Resource Group, Inc.

Launches New Website


MRG is pleased to announce the launch of our new website

The new website is more user and mobile friendly with a focus on our three service lines:  Inventory, Appraisal and Resale Management Services.  The new site also provides easier access to social media, MRG news and equipment available for sale.  We welcome feedback about the new site.

To access the new website please click below:

http://www.manageresourcegroup.net

Happy 2017 from Manage Resource Group, Inc.

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Welcome to 2017


Manage Resource Group, Inc.  would like to wish everyone a happy and prosperous new year in 2017.  As the new year gets started, MRG is excited to continue assisting clients by providing the best equipment management services and the opportunity to work with new clients in the upcoming year.   If you have any equipment management needs, MRG would welcome the opportunity to speak with you about our:

Inventory Services

Appraisal Services

Resale Management Services

You can reach our team of professionals at:

(888)-557-4797 or email: info@manageresourcegroup.net

MRG is excited to be celebrating our 10 year anniversary this year and we look forward to including you in our celebration, please be sure to look for our anniversary specials in 2017

2016 Year in Review

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Manage Resource Group, Inc. 2016 Year in Review


 As 2016 comes to an end, Manage Resource Group, Inc. can reflect on the variety of changes we have undergone in the past year along with many accomplishments. MRG has moved to a new location to better serve our customers with their equipment management needs and is also launching a new website. These new changes will allow MRG’s footprint to grow as your medical equipment specialists and provide the company with a new and improved look.

The goal of our newsletters this past year has been to bring the expertise and experiences we have learned over the years and share them with you. We will continue to provide comprehensive information to assist you in 2017.

2016 Accomplishments:

This past year, MRG has:

  • conducted over 92 audits

  • appraised $11,569,846.76 in assets

  • assisted hospitals in generating over $350,000 in resale dollars

Holiday Fun Fact:

The first candy cane dates back to 1670 in Germany. According to holiday lore, a choirmaster distributed sugar sticks bent into the shape of a shepherds’ crook to quiet his young singers during Christmas services. Today more than 1.76 billion candy canes are made for the holidays, enough to stretch from Santa Claus, Indiana, to North Pole, Alaska, and back again 32 times.

candy-cane


 Manage Resource Group, Inc. would like to wish you and your organization a Merry Christmas and Happy New Year!

christmasnewsletterpic

Send us your list of surplus medical equipment

equipment imageManage Resource Group, Inc. wants to buy your surplus medical equipment


 December 7, 2016

Send us your list of surplus medical equipment.  MRG will quickly determine the value and respond with an offer.

MRG may contact you directly if we have any questions regarding information sent.


LOGO

888-557-4797 | www.manageresourcegroup.net

Manage Resource Group, Inc. Has Moved

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Manage Resource Group, Inc. Has Moved


MRG is happy to announce that we have moved to a larger office and warehouse to better serve our clients’ needs. Please update your files with our new address below.

moving-picture

We are now located at:

682 W. Bagley Rd. Unit B15,

Berea, OH 44017


Your Medical Equipment Specialists

 

Happy Thanksgiving

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MRG Wising you a Happy Thanksgiving!

Manage Resource Group, Inc. is thankful for another successful year.  We appreciate your business and look forward to assisting with your equipment management needs in the future.

Wishing you and your family a happy and healthy Thanksgiving.

MRG’s offices will be closed on Thursday 11/26 and Friday 11/27.

Best Regards,

Manage Resource Group, Inc.

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Manage Resource Group, Inc’s. Remote Auditing Service

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Manage Resource Group, Inc’s. Remote Auditing Service

For needs associated with smaller practice valuations MRG has created its Remote Auditing Service.

With advancements in smartphone technology, what would typically require a site visit from MRG’s audit team can now be accomplished remotely.

The program allows clients to work directly with our audit team to identify assets located in properties. MRG offers clients industry expertise capturing demographics associated with each asset and MRG handles data entry, formatting and fair market assessment for the project.

The service is more comprehensive then a desk-top appraisal at a fraction of the cost for onsite services. MRG anticipates the remote service will be highly receptive for clients that are valuating smaller physician practices (1-5 exam rooms)

MRG’s auditing services offers a comprehensive solution for any need:

  • Appraise Now™appraise-now-tm button - white bkrd
  • Desktop Appraisal Service
  • Remote Auditing Service
  • Onsite Inventory & Appraisal Service

The future of ACA

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Under the new leadership of Republican candidate President Donald Trump, the healthcare industry may experience serious changes to the Affordable Care Act.  With a republican majority in both the house and senate, we can expect to see a move toward more mergers and consolidations in the healthcare industry.  With regards to the ACA, Dr. Gary Kaplan, CEO of the not-for-profit Virginia Mason Health System in Seattle said, “I think that we can put together great minds and make some further improvements and hopefully take it out of being a political football.”  The changes that Donald Trump talked about throughout the presidential race included repealing and replacing of the ACA.  I think the ACA will require modifications to its current state before repeals are carried out.  This will be a slow process in modifying the ACA and the Republican House will need to figure out ways to help people afford and maintain their coverage.

Words "Affordable Care Act" highlighted within the Affordable Care Act document

 

Costs Incurred when Hospitals Store Medical Equipment

warehouse

Hospitals take on a variety of costs associated with storing surplus medical equipment.  Storage can be managed in-house or through a third party offsite warehouse.  When medical equipment is decommissioned in a hospital, they typically move the surplus into their warehouse, an onsite shell space not being utilized by the hospital or an offsite third party storage facility.  Once there, hospitals rarely manage the surplus equipment in a timely fashion. 

Costs are then associated to these assets through storage fees, warehouse labor, and cost of square footage if the space is rented etc.: 

  • Material handling fees range from $8.00-$11.00 in handling of a pallet or piece of equipment. 
  • Warehouse labor average wage is $31.50 per person in maintaining a warehouse. 
  • If a hospital is renting a space, the average cost for per square foot ranges from $4.00-$25.00 depending on location. 
  • Hospitals can also incur cost associated with insurance for surplus in storage
  • Depreciation in value for surplus that can be resold but is sitting in storage
  • Lost revenue using new construction shell areas for storage instead of billable services

Applying these costs to one piece of equipment for an extended period of time can add up.  When you factor in a significant amount of surplus equipment, it can be surprising how much money the hospital is spending each month for decommissioned assets.  The “out of sight, out of mind” concept is costing hospitals money, therefore it’s extremely important to have a process laid out for assets removed from service.  Some options are selling on the secondary market, reutilizing elsewhere in the health system, donating, trading in, parting out to maintain current fleet or scrapping.   


MRG Projects:

MRG completed an inventory and appraisal project for four physician practices located in WV with an appraised value of over $700,000.00


MRG Appraisal of the Month: 

Tanita TBF-310 Body Composition Analyzer

FMV: $1750.00


MRG Hospital Fun Facts:

As part of an ongoing study of out-of-body experiences, 25 hospitals have special messages strategically placed near ceilings so they can only be read from above

New Website Coming Soon


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New and Improved MRG Website

Attention! Manage Resource Group is pleased to announce we will be launching a new website in the coming months.

website-contruction-pic

The current website will be updated to be more user and mobile friendly possessing a sleeker platform for your inventory, appraisal, and resale management services.

 

Age of medical equipment highest since 1940’s

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Age of medical equipment highest since 1940’s

A US Bureau of Economics and Analysis study indicates hospitals are using their medical equipment longer.  The study shows the average age of medical equipment is now 4.7 yrs.  Some may say this is a bad thing and that hospital infrastructure is deteriorating, but it may be a good thing.  It indicates healthcare facilities are running more efficiently.

In the 1990’s/early 2000’s when hospitals didn’t worry about budgets or any kind of spending, they bought the latest technology as soon as it was available.  Then the crash of 2008 and rise of Obamacare and lowering reimbursements happened.  Now, hospitals have to be wiser with their dollars.  They need to maximize their capital assets and this study shows they are.  Capital purchases are now more scrutinized, so the department requesting the equipment will need to show it is necessary.

PatientRoom

Hospitals spending less may also drive the price of capital down.  Suppliers need to find ways to sell their latest/greatest products.  New technology may not be enough anymore, so financial incentives may be added to deals.

To read the full Bloomberg article about increasing age of equipment: http://www.bloomberg.com/news/articles/2016-10-06/america-is-aging-in-more-ways-than-one

 

Hospital Expansion and Renovation

Hospital Expansion and Renovation

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With hospital growth and aging facilities comes the need for building expansion and renovations.  The impact of this goes way beyond brick and mortar.   Hospitals have plenty to consider prior to starting any expansion or renovation project:

  • Budgeting
  • Outlining calendar for engagements
  • Selecting third party firms (architects, construction companies, equipment planners etc.)
  • Planning for patient and staff impact/transition

Another area that is impacted by expansion/renovation projects are the assets currently being housed in these departments.   This might include but is not limited to medical devices, furniture, IT equipment etc.

With any project, knowledge = power and proper planning for expansion or renovations will assist with minimizing costs, delays and negative impact on staff and patients located in these areas.  When a hospital decides to move forward with an expansion or renovation project, it’s important to take a detailed look at assets housed in these areas.

Third party vendors can provide a detailed inventory of assets with condition assessment outlining remaining useful life to assist in the decision making process.  The following questions can be answered with information captured in asset audits:

  • What assets do we have?
  • Can we use current assets in the renovated or expansion areas?
  • Are assets technologically viable for the new area or should we plan on replacing?
  • Are the assets streamlined with technology throughout the system for PM’s?
  • How will we manage the equipment transition process?
  • What new purchases will be required?
  • Can we use old assets for trade-in credits on new purchases?
  • Do we have storage space to accommodate assets the will be reused?
  • What is the best course direction for assets that will not be traded-in or reutilized?
  • Who will handle the disposition process for these assets?

As with any project, proper planning lays the groundwork for a successful job. Understanding the impact of assets housed in these areas will play an important role as the expansion or renovation progresses.  Including assets as part of the strategic process enables you to properly prepare for the new/renovated location.


MRG Projects:

  • MRG conducted an inventory and appraisal project for a MI Medical Group with assets valued at more than $600,000.00
  • MRG completed liquidation of medical assets located in an Ohio Surgery Center

MRG Appraisal of the Month: 

GE/OEC Flexiview 8800 C-armoec8800

-Fair Market Value: $30,000.00

 

 

 


MRG Hospital Fun Fact:

I see big bucks in your future. Could a CAT scan cause you to lose your psychic powers? A Philadelphia woman sued Temple University Hospital in 1976 for her loss and was awarded $988,000. I guess she didn’t see that coming.
Source: Friday Fun Facts About Hospitals

 

Why you should use a 3rd party to sell your surplus equipment

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Recently, Manage Resource Group was asked to bid on a large project.  Multiple imaging pieces were to be removed over a 3 month period.  The equipment needed to be resold and removed prior the installation of new systems.  The health system asked for a cash purchase of the equipment and would handle all the rest of the details.  Even though bidding out a project like this may seem the simplest, most efficient way of getting the equipment removed and off site, it’s not.  On large projects, or equipment transitions, it is imperative to partner with a 3rd party company who specializes in resale.

CT Scan

Health systems need to partner with a reseller on large projects for many reasons.  One, is a professional reseller is going to take the proper time to find the right buyers and negotiate the best prices for the items to be removed.  Also, a reseller (MRG for example) will have access to thousands more buyers than a health system administrator who is bidding out equipment him/herself.  Secondly, a reseller will coordinate all the site visits (inspections, removals, etc.) so the hospital employee doesn’t have to be hassled with making sure multiple vendors have access to different rooms at different times.  Third, professional resellers will coordinate the removals and make certain the right pieces are taken out at the right time.  Some removals (especially Imaging equipment) can take multiple days to complete one system.  These are time consuming, tedious tasks no administrator wants to be a part of.  Especially, with a full slate of other responsibilities at the hospital.

Bidding out equipment and not using an exclusive vendor may seem to be a good option to use.  However, on the large projects involving many tasks, it’s better to let a company handle it, they’ll make sure all the details are covered.

To learn more about resale services contact MRG at 888/557-4797

 

 

Appraise Now ™- Fair Market Value at your Finger tips

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Appraise Now ™

Fair Market Values at your Finger tips


Do you have a piece of equipment that you are trading in, buying out a lease, changing out an imaging system, or just looking to sell? MRG can identify the FMV for you.

 MRG is offering 1qty
FREE
Appraise Now

Response for those who register for an ID/Password on our Appraise Now ™ portal.

appraise-now-tm button - white bkrd

Free Appraise Now Response is valid to new registrants

Offer will be valid through the month of October


 

Maybe health insurance should be handled directly by IDN’s and Health Systems

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Maybe health insurance should be handled directly by IDN’s and Health Systems

With recent news about health insurance companies pulling out of the Health Exchange under the Affordable Care Act maybe it’s time to get creative and look at new avenues for cost effective health insurance coverage.

The idea behind the health exchange was to reduce insurance cost by driving competition.  The health exchange was going to provide affordable health insurance but the cost of healthcare outweighs the demand within subsidies that were given out to low income consumers causing insurance providers to lose money and pull out of the exchange all together.  This has left consumers without insurance and is driving the cost of premiums up for those who are not part of the exchange.

Some health systems have created their own insurance companies to provide insurance to patients within their networks in order to drive consumers to utilize services within their hospitals.  With this new movement maybe it’s time for health insurance to be totally housed by those who can dictate the cost of care they provide?

Consultant presenting insurance concept and risk management

Health systems are already utilizing this formula with consolidation in the industry. Health systems have actively been acquiring stand-alone hospitals for years.  This market consolidation allows health systems to streamline service while minimizing exposure in operational expense.

The following would be an example of how this model might work in the Cleveland Market:

The Cleveland Clinic and UH are the two big players in NE Ohio and hospital consolidation has narrowed consumer choice down to one of these two organizations.  If both health systems provided their own insurance plan, it would provide direct competition in a centralized market place where consumers could look at services offered, cost of services provided and cost of insurance to cover services provided.  Both organizations would be forced to drive cost savings in all these areas in order to directly compete with one another.   Smaller health systems and stand-alone hospitals would be able to negotiate with these providers to be included in their insurance plans.

Yes this is a broad overview of the topic and there are numerous variables that would need to be taken into account but direct competition in a regional market place would drive value to the consumer in the plans being offered as well as its cost.

Report confirms gradual growth in hospital-owned health plans

http://www.modernhealthcare.com/article/20160414/NEWS/160419947

 

With Hard Work Comes Success

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 With Hard Work Comes Success

The definition of work ethic is definitely upheld on the Olympic stage at the 2016 Rio Olympics.  With the U.S. winning an astounding amount of medals compared to the other countries, it is only fitting to acknowledge how the medalists got to their positions on the podium.  The many hours of dedication to their sport and days of constant work achieving perfection in routines and performances shows the true success of athletes.  Practice isn’t the only thing that is essential for Olympians.  Their overall nutrition and diet carries weight, along with a strong support group.  Hard work and dedication provides the opportunity for athletes to be on the world’s biggest stage, the medals they win show they deserve to be there.

Male hand rise up a gold medal against the dramatic sky with copy space

In order to be a successful company, there is an immense amount of behind the scenes work that goes into a successful formula.  Maintaining the constant understanding of customers needs, keeping up with marketing trends, and evolving your product to best fit those needs at an affordable price point; these characteristics help determine the success of a company.  Focus should be on growing as a company while being informed on what the market is doing, as well as competitors and understanding market trends that might put unforeseen restrictions on your business practice.  Quality products and services are expected in business, but infusing ones experience along with maintaining a reputation as a great company shows customers that your company deserves to be where it’s at.

AHRMM16 San Diego, CA

AHRMM16

The Manage Resource Group, Inc. team made it home safe and sound from a busy few days at the AHRMM16 Show that was held in San Diego, CA.

It was great seeing past clients and meeting AHRMM members that we look forward to working with in the near future.  The show provided a great venue to discuss how MRG’s services can provide assistance with the ongoing equipment management needs of healthcare providers.

AHRMM16Booth

San Diego gave us excellent weather and the chance to spend quality time in the Gaslamp District, enjoying great restaurants and networking opportunities with fellow AHRMM members.  We look forward to AHRMM17 that will be held at the Walter E. Washington Convention Center in Washington, DC. (July 24-25, 2017)

AHRMM16Gaslamp

If you attended AHRMM16 show this year and didn’t get a chance to stop by our booth, we would appreciate the opportunity to discuss any needs your facility might have with:  Inventory, Appraisal or Resale Management Services.  Give us a call at 888/557-4797 or email: info@manageresourcegroup.net

Manage Resource Group, Inc. wants to purchase your surplus medical equipment

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Manage Resource Group, Inc. wants to purchase your surplus medical equipment


MRG is actively looking for surplus medical equipment

Do you have out of service medical equipment collecting dust, no longer serving a clinical purpose? If so, contact Manage Resource Group and let us pay you cash for your equipment now!
MRG buys all patient related medical equipment. From OR, Imaging, to the Lab equipment. We will have cash in your hands and equipment out of your facility faster than you thought possible.
Contact us today to learn more
Manage Resource Group, 682 W. Bagley Rd. Berea, OH 44017
  Brian Hoehn                                                  Brad Andrew
 bhoehn@manageresourcegroup.net         bandrew@manageresourcegroup.net
888-557-4797 (extension 1)                         888-557-4797 (extension 2)

“Helping to assess, inform, and empower healthcare providers

with their equipment management needs.”

 

Medicare/CMS now supports serial numbers for implantable devices

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Medicare/CMS now supports serial numbers for

implantable devices

Medicare now endorses the use of unique identifiers on implantable devices.  They cite patient safety as main reason for the change in thought.  Using serial numbers on pace makers and other implantable devices has been discussed for years but until now, Medicare was not supportive of the idea. Not only will the hospitals have to track the S/N’s on the packaging of the devices but also it will have to be tracked in the billing/coding of the procedures.

online medical records

Hospital staffs are already understaffed and overworked.  How will they handle another asset management responsibility to their requirements?  Especially one that makes an already difficult task in billing even harder.  Health Systems pay third party companies to inventory all assets throughout the facility: capital equipment, drugs, supplies, etc…  Now they may have to hire an outside company to track their implantable devices also.

To read the full article, click below:

http://www.wsj.com/articles/medicare-backs-id-numbers-for-medical-devices-1468538333?tesla=y:

Manage Resource Group at AHRMM16

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Trade your business card for a chance to win $$$$

 Please visit Manage Resource Group at Booth 1004 at the AHRMM16 Conference & Exhibition, July 31st – August 3rd, 2016, in San Diego, California.

 From more than 200 exhibitors showcasing the latest products and solutions to over 50 field-defining educational sessions to abundant networking opportunities, at AHRMM16 you will obtain tools and best practices that deliver results and meet industry experts ready to share their advice and solutions to assist you in reaching organizational goals.

AHRMM16 is a must-attend event for healthcare supply chain professionals.

AHRMM16 Conference & Exhibition
July 31st- August 3rd, 2016
Exhibit Dates: August 1-2, 2016
San Diego Convention Center
San Diego, California
Booth 1004

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Learn more AHRMM16

Visit Manage Resource Group at www.manageresourcegroup.net

Ransomware Attacks in Healthcare

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Ransomware Attacks in Healthcare

hospital exterior - japan

The rise of ransomware attacks in the U.S. have risen 35% in the past year alone.  With the ransom amounts getting bigger, these criminal hackers are looking toward organizations such as hospitals.  The most surprising part is that the hospitals are paying the large sums of ransom to regain access to their system.  Hollywood Presbyterian said, “Handing over the $17,000 was in the best interest of restoring normal operations”. Is this truly in the best interest of the hospital to submit to paying these criminals? How long before these criminals return seeking more money?

There is no preventative action in place once the ransom is paid; therefore hospitals are just as vulnerable as before.  The money that is being funneled is through bitcoin which is anonymously traded currency online. In order for health systems to protect themselves, they need to implements software that is more secure, on top of having contingency plans in place if the system is hacked.  Protection from these hackers involves money up front, however that is money well spent to ensure the safety of workers and patients.  Paying off these criminals will result in the hospitals becoming watering holes for other hackers looking to make their bitcoin.  Below is an article that goes into further detail about the problem ransomware has become for healthcare facilities.

http://www.nbcnews.com/tech/security/big-paydays-force-hospitals-prepare-ransomware-attacks-n557176

June 2016 Newsletter

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June 2016 Newsletter

Surplus Medical Equipment: Is there a Market for it?

operating room with X-ray medical scan.

Decommissioned medical equipment is part of the equipment life cycle that many facilities find challenging.  These challenges cause many facilities to move equipment into storage (out of sight out of mind) or discard because the remaining book value has depreciated to $0 and they don’t think the asset is worth anything.  Following are a few things to consider about your decommissioned (surplus) equipment:

  • Time restraints and lack of market knowledge are reasons why hospitals don’t actively manage their surplus equipment in a timely fashion
  • Approximately half of equipment removed from service still has secondary market value
  • Just because an asset is no longer functional does not mean it doesn’t have value.  Many buyers purchase these types of assets to use for parts
  • Just because an asset doesn’t have book value doesn’t mean it won’t have secondary market value
  • Secondary market value may provide higher returns than OEM trade-in values
  • Working with a third party vendor to help identify assets with no value provides justification for discarding the asset with hospital administration, eliminating the need to put into storage

It’s important to understand that there is a market for surplus equipment and having a partner who understands the secondary market can offer benefits to provide the best return on your investment while minimizing time and space restraints surplus can have on your facility.


MRG Projects: 

Completed an Ohio audit of 10 physician practices with an asset count of over 2,000 assets, valued at over $500,000

Appraisal of the month:

Newsletter photo 6.30.16

1qty Dornier Medilas H Holmium laser

-FMV: $10,000.00

 

 

 

MRG Hospital Fun Fact:

In a study to improve hospital design for children, researchers polled 250 children regarding their opinions on clowns and every single one of them reported disliking or fearing them. –Source


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

Manage Resource Group Exhibiting at AHRMM


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Manage Resource Group Exhibiting at AHRMM Booth 1004


IF YOU MANAGE HEALTHCARE SUPPLY CHAIN, AHRMM16 IS A MUST-ATTEND EVENT FOR YOUR 2016 TRADE SHOW CALENDAR

AHRMM16 Exhibition, Aug 1-2, San Diego Convention Center, is the premier showcase of the latest products, technology, and services for healthcare supply chain. The exhibition brings together approximately 200 vendors and more than 1,000 attendees, collectively managing billions of dollars in healthcare purchases. The trade show offers an ideal forum for establishing and strengthening professional relationships to improve effectiveness and efficiency of supply chain operations.

Come experience the best networking opportunity of 2016 and learn about recent advances within the healthcare supply chain field. With exhibitors in nearly every healthcare category, you are sure to find the solutions you need to improve and streamline your operations.

Manage Resource Group Inc. will be exhibiting at AHRMM16 Exhibition, August 1-2 at the San Diego Convention Center. Be sure to stop by and visit us at booth 1004

Register today at www.ahrmm16.org

Visit Manage Resource Group at www.manageresourcegroup.net


 

AHRMM header

Free Appraise Now™ with an Onsite Inventory-Appraisal

Free Appraise Now™ with an Onsite Inventory-Appraisal during the month of Juneappraise-now-tm button - white bkrdMRG’s inventory and appraisal service provides a third party objective view that captures all demographics associated with physical assets. Information gathered from audits can be leveraged during the acquisition process.  MRG specializes in providing audits for the following:

Physician practices

Surgery centers

Imaging centers

Sleep labs

Dental practices

Dialysis centers

Hospitals

During the month of June receive a free Appraise Now™ when you contract MRG to perform an onsite inventory and appraisal.  (Appraise Now™ must be used before July 31, 2016).  In order for promotion to be applied, please reference “JunePromo16”.  Please contact one of our sales professionals at (888)-557-4797 for any additional information.

Manage Resource Group Adds New Member to the Team!

blog photo 6.2.16

Manage Resource Group would like to announce our newest team member, Dave Holy.  Due to our growing customer base and increased demand for inventory/appraisal services, Dave will be vital in supporting projects throughout the country.  He will manage online sales and operations for MRG.

Dave brings years of project management and network/IT experience to Manage Resource Group.

He can be reached at 440-623-9725 or dholy@manageresourcegroup.net

MRG News and Views – Leveraging ownership & control when selling surplus

Surplus EquipmentPic

 

 

 

 

 

The secondary market has thousands of companies who purchase, consign and liquidate surplus medical equipment for hospitals.  Navigating this marketplace can be challenging and risky selling to buyers who don’t have the best interest of the hospital in mind when purchasing surplus medical equipment.  Hospitals need to leverage ownership of their equipment and not release control until payment and liability terms are met.  Following are key points every hospital should consider if they are selling surplus medical equipment to safeguard themselves:

  • When selling surplus make sure the buyer understands that the equipment is being sold “AS-IS, WHERE IS” condition with no warranties implied
  • Confirm that the equipment is not part of a lease or rental program with no liens attached to the asset
  • Remove hospital tags on equipment
  • Make sure accounting is informed that the equipment has been decommissioned and will be removed from the property (working with accounting for moneys received on sold equipment)
  • Have buyers sign off on a term of sale form indemnifying and releasing hospital of all liabilities associate with sale and future use of sold equipment. (involve hospital legal department when drafting this form)
  • If you’re selling imaging equipment make sure you notify your state of who and where the equipment was sold (the buyer should also be registered with the state they reside in to handle this type of equipment)
  • Require secure form of payment before equipment leaves the property (company check if you’re familiar with buyer, cash, wire transfer, bank check etc.)
  • Have the buyer be responsible for cost associated with shipping

Developing a policy and procedure for disposition of assets is advised for any healthcare organization and the resale of surplus should be part of this process.  If your organization resells surplus, implementing safeguards will allow for a hassle free transaction while minimizing risks associated with end of life equipment sale.

MRG Projects:

  • MRG recently completed a inventory and appraisal project for six OBGYN practices in KY with over 2000 assets, valued at $1,000,000.00
  • Michigan audit for radiation oncology practice valued over $700,000.00 in tangible assets

MRG Appraisal of the Month: 

MayAppraisalPic

 

 

 

2007 Varian Medical Systems Clinac IX Linear Accelerator

Fair Market Value: $575,000.00

MRG Hospital Fun Facts:

On the set of Rocky IV, Dolph Lundgren punched Sylvester Stallone so hard that the hospital staff thought he was hit by a car.

Healthcare merger and acquisition activity likely to stay strong in 2016

blog photo 5.19.16

The landscape for post-acute and independent physician practice mergers and acquisitions looks to remain active for the remainder of 2016.  Much has to do with the inability for independent providers operating in a fragmented marketplace to provide value based care at a competitive rate with hospitals and health systems.

With volatility comes consolidation.  Uncertainties with the upcoming election is also playing a role in this activity.

http://www.modernhealthcare.com/article/20160101/MAGAZINE/301029931

MRG News and Views – Reconciling/Spring Cleaning your Asset Ledger

LedgerwithHand

With spring in the air many people are beginning their annual spring cleaning to thin out all those things that have accumulated over the winter months.  Have you considered doing a little spring cleaning when it comes to your asset ledger?  It is not uncommon for hospital ledgers to contain 60-70 percent more line items than actual assets located in the facility.

How many items on your asset ledger aren’t assets (building upgrades/materials, time for contracted work, installation fees etc.) or are assets that were purchase pre 1970 and you know they are no longer in the facility but are still showing on the books?

Typically when conducting a capital audit, reconciliation is part of the project scope.  This can be extremely challenging if the ledger has not been scrubbed prior to reconciling.  Following are a few tips that accounting departments can do to begin scrubbing their asset ledgers prior to engaging a third party vendor or internally conducting an audit:

  • Be sure to have a process outlined for add/deletes when new equipment comes in and old equipment goes out of the building.
  • Capital asset ledgers may contain more than physical assets. If your ledger includes non-asset line items on them make sure you have built in flags allowing you the ability to scrub the non-assets from the ledger.  This will help identify physical assets on the ledger and minimize time spent reconciling.
  • Identify assets on the ledger that are extremely old and begin making determinations if the asset was removed from service. If it was removed, delete it from the ledger.
  • Do not aggregate multiple descriptors into one field. Keep demographics in separate fields i.e. manufacture, model, description etc. should all be separate columns.  It’s important to have the ability to sort your ledger.
  • Incorporate unique identifiers on capital equipment in the facility that can be cross referenced against the ledger. Most facilities use barcode tags to allow for easier reconciliation in the future.

Maintaining the capital ledger on a regular basis will minimize issues that occur over time as assets enter and exit the facility.  Applying some basic steps can help keep the ledger ‘spring’ clean & accurate.  Eliminating the need to scrub the ledger in preparation for reconciliation also saves time and money incurred by third party auditing firms.

MRG Projects:

  • Audit for OH health system w/ 8 locations totaling more than 5,000 assets inventoried and over $7 Million in appraised value
  • Audit for MI health system totaling more than 2000 assets inventoried and $2 Million in appraised value
  • Multi location audits in TX, KY and OH

MRG Appraisal of the Month:

1qty Conmed Beamer Mate ESU/ABC unit

FMV: $11,000.00

ConmedBeamer

MRG Hospital Fun Facts:

25 hospitals in North America and Europe have visual messages strategically placed near the ceilings in operating rooms. These messages are only visible when read from above, and are part of an on-going study to test the validity of people claiming to have ‘out of body’ experiences

Manage Resource Group, Inc. awarded Equipment Liquidation and Related Service agreement with Premier, Inc.

Manage Resource Group, Inc. has been awarded a group purchasing agreement for Liquidation and Related Services with Premier, Inc., a leading healthcare improvement company. Effective May 1, 2016, the new agreement allows Premier members, at their discretion, to take advantage of special pricing and terms pre-negotiated by Premier for Liquidation and Related Services.

Premier unites an alliance of approximately 3,600 hospitals and 120,000 other providers.

For more information about the agreement contact our sales team at 888/557-4797 or visit our website at www.manageresourcegroup.net

About Manage Resource Group, Inc.

Manage Resource Group, Inc. is a national services provider established in 2007 with a client focused approach specifically targeting the challenges equipment management places on healthcare facilities. We are industry experts offering the following service lines:

  • Inventory Services
  • Appraisal Services
  • Resale Management Services

Manage Resource Group, Inc. brings over 30 years of experience working with hospitals to perform onsite inventories, conduct asset appraisals, resell surplus medical equipment, and oversee programs that assist with ongoing management of current and future equipment needs.

Manage Resource Group, Inc. awarded HealthTrust Supplier Contract

LOGO

Manage Resource Group, Inc. is pleased to announce that the company was awarded a HealthTrust supplier contract for inventory and appraisal services. The agreement became effective March 1, 2016 and covers our full line of inventory and appraisal services. For more information about the agreement contact our sales team at 888/557-4797 or visit our website at www.manageresourcegroup.net

MRG Newsletter January 2016

MRG News and Views – Challenges and Best Practices Hospital Audits

accounting software
accounting software

Health Systems allocate an incredible amount of dollars to integrate new software technologies to support various functions within their institutions.  New operating systems, new accounting software, new software to track preventative maintenance schedules and personnel are all purchased to run a facility more efficiently.  With this cost comes the need for “clean data”. Ensuring new software is operating on accurate information identifying each asset physically located within the property is imperative.

Questions arise on who should conduct the audit and what information currently exists that can be leveraged to assist with verifying data that will be integrated into the new software.  In our years of experience working in facilities and assisting hospitals with audits, MRG has identified challenges and best practices that help accomplish goals associated with these types of projects.  Following are a few challenges and best practices we have identified.

Challenges:

  • Often times hospital data (ledger) doesn’t accurately reflect what is physically in the building
  • Hospital ledgers sometimes group multiple identifiers into one field eliminating the ability to properly sort or reconcile data
  • Hospital departments can feel threatened by a third party companies conducting an audit and may resist having outside parties in their areas
  • Hospital departments may have alternative agendas for collecting data and attempt to manipulate outcomes that are strategically different than what administration is trying to achieve
  • Including pre-construction area’s in audits and assigning barcode tags to equipment that is not physically in the facility can corrupt data integrity (only inventory what you physically see)
  • Using an old ledger as the nomenclature when collecting inventory data may create more work than starting with a new nomenclature

Best Practices

  • Have clear top down communication from administration to all departments impacted by an audit
  • Define goals of the audit with hospital personnel and third party hired vendors
  • When utilizing a third party company, have a single point of contact from the facility act as the hospital liaison and properly introduce them to personnel that will be involved at the facility level
  • Define demographics that need to be captured in the audit and define specific timelines the inventory team will be at each department within the hospital
  • Identify ways to minimize disturbance for both patients and hospital staff
  • Define processes to keep collected data clean with future additions and deletions
  • Reconcile ledgers every 2-3 years to ensure data integrity

Hospital audits by nature can be somewhat intrusive.  Establishing action plans to challenges before they happen and utilizing best practices will ensure intended outcomes and proper data collection while minimizing disturbance to patients and hospital staff.

MRG Projects:

  • Hospital liquidation in MI
  • Desktop appraisal for 17 physician practices
  • Audit of multiple ER departments for Ohio hospitals

MRG Appraisal of the Month:

Ritter 222 power exam table

FMV: $2750.00

 Ritter 222

MRG Hospital Fun Facts:

Bagel-related injuries are so common that hospitals have special names for them. Bagel-related injuries (BRIs) send as many as 2,000 Americans to the hospital annually.

Receive 1 Free Appraise Now during the first quarter of 2016

mrG LOGO

Receive a FREE Appraise Now™

During the 1st Quarter of 2016 when you sell your surplus medical equipment or sign a resale project with MRG


We are starting out the new year right by offering a free Appraise Now™ with a direct surplus sale or resale project commitment. 

Let Manage Resource Group, Inc. purchase or sell your surplus and receive

1qty Free Appraise Now™ Valuation

Reference MRG16PROMO

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Appraise Now™ brings equipment appraisals to your finger tips. A secure web-based approach to questions surrounding equipment fair market values

   Identifying Values For: 

OEM Trade-In

Lease Buyout

Property Tax Valuation

Insurance

Replacement Cost

Fair Market Assessment

Sale to Doctor or Third Party


Contact an MRG Sales Professional at 888/557-4797 or email us at info@manageresourcegroup.net to discuss your current surplus needs. 

Reference MRG16PROMO when you contact MRG. Promotional applies to completed surplus sales or signed resale commitments with MRG for the1st quarter of 2016 (January-March).  Limit one Appraise Now per customer to be used before March 31, 2016

How long has it been since your organization conducted a physical inventory of property assets?

Word Cloud - Audit

Many hospitals believe that their general ledgers accurately account for assets that are physically located within the property.  The problem with this line of thinking is that if the facility has not conducted a capital audit within the last 3-5 years chances are the accounting ledger most likely doesn’t reflect what is actually within the facility.  The following story out of Santa Clara Valley Medical Center highlights what many facilities may be challenged with when accounting for medical assets.

http://www.nbcbayarea.com/investigations/Santa-Clara-Valley-Medical-Center-Missing-Equipment-Taxpayers-Money-351196811.html

For more information on inventory and appraisal services contact an MRG professional at 888/557-4797 or email at info@manageresourcegroup.net

 

HAPPY THANKSGIVING

HappyThanksgiving

Manage Resource Group, Inc. would like to wish everyone a Happy Thanksgiving. We are grateful for the opportunity to assist your equipment needs this past year.

Please note that MRG’s offices will be closed on Thursday 11/26 and Friday 11/27

Ready, Set…. GO!

Holiday Rush

Now that Halloween is over the holiday season is officially upon us and with it comes the hectic pace of trying to get everything ready for Christmas. Cooking, cleaning, buying gifts getting the house decorated…. the list goes on and on, and this doesn’t include throwing Thanksgiving into the equation.

Some people spend so much time and energy worry about everything that needs to be done they forget to stop and enjoy the season and what it has to offer. The holiday season is what one makes of it. It can be chaotic and stressful or it can be a time of enjoyment and reflection on all the good things in one’s life.

For many companies this chaotic pace is common place in the workforce. There are deadlines to meet, clients to call, emails to respond too… the list goes on and on. You’re probably sensing a parallel here and you would be correct.   As a small business it doesn’t take much for this fast paced culture to permeate all that we do. All of us multitask and do whatever it takes to get things done.

With this in mind I think it would be very beneficial to take a step back and reflect on all the positive things your company has accomplished this past year. I bet many would be surprised at what was achieved and how your company benefited from all the hard work. So before the holiday season is in full gear your friends at MRG would like you to slow down for just a moment and reflect on your accomplishments this past year.

Ready, Set….. GO!

September 2015 Newsletter

Is your hospital proactive or reactive with equipment replacement decisions?

Budget

For many clients the budgeting process for the next fiscal year is well underway.   Capital equipment budgets are being developed by hospital departments to determine which assets will be replaced and which technology transitions will take place in the new-year.

Hospitals will purchase many different types of capital equipment for the upcoming year. With budgets soon to be approved, purchase orders will be sent and new equipment will be delivered.  Does your facility have a plan for equipment that will be displaced by new purchases?

It’s not uncommon for hospitals to focus their attention on new equipment purchases during the budget review process but this is the best time to also identify what is going to happen with equipment that will be displaced by new purchases.

Being proactive during the budgeting process will minimize exposure decommissioned assets place on the facility once replacement budgets have been approved.  Following are points to consider during the budgeting process in preparation for new equipment arrival:

  • Create a timeline/calendar outlining incoming and outgoing equipment in specific areas
  • Have a clear understanding of equipment that will be decommissioned by any new purchases
  • Identify potential resale value for end of life equipment on replacement budgets
  • Determine what is the best course of direction for displaced asset:

*  Trade-in to the OEM for new purchase

*  Redeploy internally to a sister facility

*  Sell on the secondary market

*  Donate

*  Salvage

  • Develop a project plan that outlines what areas of the hospital will be impacted and personnel that will be involved in the transition process.
  • Who will the key players be for new equipment arrival and decommissioned assets?
  • Determine areas within the hospital that can be utilized for staging incoming and outgoing equipment to minimize patient and employee disturbance
  • Utilize equipment fair market valuations to better negotiate potential trade-in with OEM on new purchases
  • If secondary market values dictate selling the assets, begin to identify potential buyers before equipment is removed from service

Being proactive during the budgeting process allows the hospital flexibility to better manage decisions on what will happen with assets displaced by new purchases.  Having a plan in place for decommissioned assets will minimize space requirements while maximizing potential returns on equipment impacted by new equipment purchases.

MRG Projects:

I&A of Ohio GI Clinic included a surgery center, lab and two practices appraised at more the $500,000 in tangible assets. I&A of two Family Medicine Practices in Kentucky.

MRG Appraisal of the Month:

 1qty 2013 Sandstone Cheveux cosmetic laser

FMV: $25,000.00

cheveux-machine-280MRG Hospital Fun Facts:

Geri Halliwell (Ginger Spice) went on a surprise visit to hospital to meet a fan who fell into coma after being stabbed 30 times. She sang to the girl and her arms and legs started moving and she woke up the next day

Manage Resource Group, Inc. Remote Auditing Services

Do you have a small physician practice that needs to be audited?  MRG provides a solution that is cost effective and offers a much quicker return on deliverables than an onsite audit.  MRG’s remote auditing services minimizes the cost associated with travel and time restraints when conducting an onsite audits.

With advancements in technology and MRG’s proprietary inventory software what would typically require a site visit from MRG’s audit team can now be accomplished remotely.

The remote audit allows clients to work directly with our inventory/appraisal specialist to identify assets located in properties.  MRG provides clients industry expertise, capturing demographics associated with tangible assets i.e. medical equipment, furniture, IT, business related equipment etc. and MRG will handle the data entry, report formatting and fair market valuation for each project.

The remote auditing service is more comprehensive than a typical desk-top appraisal at a fraction of the cost of onsite auditing services. The remote auditing services provides clients a cost effective option to valuating smaller physician practices (1-5 exam rooms)

MRG’s auditing services offers a comprehensive solution for any need:

  • Appraise Now™
  • Desktop Appraisal Service
  • Remote Auditing Service
  • Onsite Inventory & Appraisal Service

RemoteAudit

For more information on MRG’s Remote Auditing Services, please contact us at:

Toll Free: 888/557-4797 Email: info@manageresourcegroup.net

MRG at AHRMM 2015 Conference

MRGhead

AHRMM 2015 CONFERENCE

This past week Manage Resource Group exhibited at the 2015 AHRMM Conference in Indianapolis, IN.  The 3 day conference brought people from all over the country to discuss many of the current issues medical supply chain teams are facing.   We were fortunate enough to meet with new healthcare personnel and at the same time, reconnect with many past attendees.

Thanks again for stopping by our booth during the show.

Please contact MRG at 888.557.4797 or email info@manageresourcegroup.net to learn more about our services.

Ahrmm2015

MRG is heading to Indianapolis, IN for AHRMM 2015

Its time for MRG to hit the road and head to Indianapolis, IN for the 2015 AHRMM Conference and Exhibition.  We hope to see many of you there.  Please stop by and visit us at our booth (725).  MRG will provide live updates from the road via twitter.

Road

AHRMM 2015

AHRMM15 Conference & Exhibition
August 9-12, 2015
Exhibit Dates: August 10-11, 2015
Indianapolis Convention Center
Indianapolis, Indiana
Booth 725

Visit MRG Booth 725 at AHRMM 2015 Conference & Exhibition

MRGLogo

 

Stop by MRG booth 725 

and trade your business card for a chance to

 WIN  $$$$

AHRMM 2015

AHRMM15 Conference & Exhibition
August 9-12, 2015
Exhibit Dates: August 10-11, 2015
Indianapolis Convention Center
Indianapolis, Indiana
Booth 725
Please visit Manage Resource Group at Booth 725 at the AHRMM15 Conference & Exhibition, August 9-12, 2015, in Indianapolis, Indiana.

From more than 200 exhibitors showcasing the latest products and solutions to over 50 field-defining educational sessions to abundant networking opportunities, at AHRMM15 you will obtain tools and best practices that deliver results and meet industry experts ready to share their advice and solutions to assist you in reaching organizational goals.

AHRMM15 is a must-attend event for healthcare supply chain professionals.

Learn More AHRMM 2015

The Importance of Teamwork

OAKLAND, CA - JUNE 04:  Stephen Curry #30 of the Golden State Warriors shoots against Kyrie Irving #2 of the Cleveland Cavaliers in the first quarter during Game One of the 2015 NBA Finals at ORACLE Arena on June 4, 2015 in Oakland, California. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, user is consenting to the terms and conditions of Getty Images License Agreement.  (Photo by Ezra Shaw/Getty Images)

adc5351928698fe3b47452c106c74c0d_crop_north

The NBA Finals showed us that teamwork is vital to success. Cleveland lost important players to the team due to injuries and LeBron ended up not having the support he needed. Golden State stole the win because the whole team remained healthy and they knew they all had to pull their weight in order to succeed.

Departments within a hospital must also work together in order to achieve their goals during the resale process. First, Clinical departments work with Purchasing and Engineering departments when they wish to replace capital equipment. All 3 departments determine what items will be purchased new. The Clinical department then works with Engineering to remove old equipment from service. Lastly, Engineering works with Purchasing to determine the best equipment disposition route: resale, donation or scrap.

When your whole team is on the same page, it makes for a job well done.

teamwork_1

5 Reasons to Sell Your Surplus Equipment NOW

Storage room at MRG

 

 

 

 

 

Healthcare facilities have choices when equipment becomes surplus. Items can be stored, donated, scrapped, or resold. Selling surplus equipment creates the best returns on out of service items, but sometimes hospitals are hesitant to resell equipment for fear of needing it in the future and other reasons. Like most things though, timing is everything. Here are 5 reasons you should be selling your equipment now:

1. Space Saved: Surplus equipment takes up valuable space in a hospital while not producing any clinical value.
2. Highest resale value is now: equipment does not appreciate over time. The best time to resell it is as soon as it is surplus. There are newer technologies that will be resold soon and will depreciate your asset even more.
3. Your facility doesn’t need it anymore: The equipment was retired for a reason so why hold onto it anymore?
4. The technology is probably obsolete: OEMs obsolete equipment quicker than ever before, making it hard to find support or parts for old equipment.
5. Reselling equipment is easy: By streamlining the internal resale process and working with a reliable 3rd party vendor, selling your surplus equipment has never been easier.

Please contact Manage Resource Group at 888.557.4797 or visit www.manageresourcegroup.net for more information.

Save 10% off Desktop Appraisals and Remote Auditing Services

MRGLogo


During the month of June, Manage Resource Group, Inc. will offer clients a savings of 10% off any desktop appraisal or emote auditing service

Desktop Appraisal: an efficient manner to obtain Fair Market Values (FMV) when onsite evaluation is not necessary.  Do you have a list of equipment that needs appraised?

 Remote Auditing Service: allows clients to work directly with our audit team to identify assets located in properties. MRG offers clients industry expertise capturing demographics associated with each asset and MRG handles data entry, formatting and fair market assessment for the project.

(Reference MRGJunePromo to to receive your 10% discount when contacting MRG)

RemoteAuditPic

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 Services

For more information on MRG’s Desktop Appraisals and Remote Auditing Service please contact us at:  Toll Free: 888/557-4797 Email: info@manageresourcegroup.net

     Like us on Facebook           Follow us on Twitter          View our profile on LinkedIn  

Manage Resource Group Welcomes a New Team Member!

Manage Resource Group would like to welcome their newest team member, Marisa Mindyas, as the new Marketing Assistant and Lead Generator. She will be assisting MRG with all marketing and networking. Marisa is a Cleveland State University student from Strongsville studying marketing/promotional communications. With school, she belongs to the Golden Key International Honour Society, the Public Relations Student Society of America and The National Society of Collegiate Scholars. Marisa enjoys golf, snowboarding and music in her spare time. We are excited to have her be a part of MRG!

MRG will be exhibiting at AHRMM 2015

 

AHRMM 2015

 

 

 

AHRMM15 Conference & Exhibition
August 9-12, 2015
Exhibit Dates: August 10-11, 2015
Indianapolis Convention Center
Indianapolis, Indiana
Booth 725
Please visit Manage Resource Group at Booth 725 at the AHRMM15 Conference & Exhibition, August 9-12, 2015, in Indianapolis, Indiana.

From more than 200 exhibitors showcasing the latest products and solutions to over 50 field-defining educational sessions to abundant networking opportunities, at AHRMM15 you will obtain tools and best practices that deliver results and meet industry experts ready to share their advice and solutions to assist you in reaching organizational goals.

AHRMM15 is a must-attend event for healthcare supply chain professionals. Remember to register by May 15, 2015, to save up to $200 off conference registration with the Early Bird rates! Learn More…

MRG News & Views, Newsletter April 2015

What is USPAP and why is it important in fair market valuations

USPAP

(USPAP)  Uniform Standards of Professional Appraisal Practice are the generally accepted standards for professional appraisal practice in North America.  It contains standards for all types of appraisal services which include real estate, personal property, business and mass appraisal.

The Financial Institutions Reform, Recovery and Enforcement Act of 1989 recognizes USPAP as the generally accepted standard for federally related transactions.  State Appraiser Certification and Licensing Boards; federal, state and local agencies, appraisal services; and appraisal trade associations require compliance with USPAP.

Having uniform standards in place when appraising tangible assets for healthcare institutions ensures that the appraising firm is following guidelines that is accepted for appraising practice. USPAP acts as quality control when applying fair market valuation to assets.

When your organization is considering an appraising firm to assist with valuation needs be sure to ask if they are following USPAP when applying fair market values in reports/deliverables. Following are a few informational points about USPAP:

  • USPAP was originally written in 1986-87
  • At its organizational meeting held on January 30, 1989, the Appraisal Standard Board (ASB) unanimously approved and adopted the original USPAP as the initial appraisal standards
  • USPAP guidelines are updated every two years
  • The current version of USPAP is available at www.appraisalfoundation.org and has an effective date of January 1, 2014.

MRG Milestone:

MRG wishes to thank all of our clients as we celebrated our 8 year anniversary this month.  We understand that our clients are the ones who have made us successful over that past 8 years and we appreciate the opportunity to assist your equipment management needs.

MRG Projects:

2 Neurology/Surgical Practice I&A in OH, Family Pediatric Practice in KY,  Diagnostic Practice in KY

 MRG Appraisal of the Month:

Hologic Selenia Dimensions Digital Mammography System.

 FMV: $165,000.00

 hero_Selenia_Dimensions

MRG Hospital Fun Facts:

Some hospitals keep a supply of beer for alcoholics in case they go through withdrawal (which can be fatal). Some hospitals even have beer cans with prescription labels.

Happy 8th Anniversary MRG!

srd_8th-year-anniversary-final_o

 

 

 

 

 

Manage Resource Group, Inc. (MRG) is pleased to announce our 8th year anniversary!  We want to thank our loyal customers for the opportunity to assist their equipment management needs.  We look forward to providing healthcare facilities the following hands-on services for years to come:

  • Inventory Services
  • Appraisal Services
  • Resale Management Services

MRG understands that it’s our customers who make the company successful and we strive to provide the highest quality services and customer support for our clients.

Thank You!

You’re Equipment Management Team

Manage Resource Group, Inc. Remote Auditing Service

MRG logo - 3x3in size purple bkrd5

For needs associated with smaller practice valuations MRG has created its Remote Auditing Service.

With advancements in smartphone technology what would typically require a site visit from MRG’s audit team can now be accomplished remotely.

The program allows clients to work directly with our audit team to identify assets located in properties. MRG offers clients industry expertise capturing demographics associated with each asset and MRG handles data entry, formatting and fair market assessment for the project.

The service is more comprehensive then a desk-top appraisal at a fraction of the cost for onsite services. MRG anticipates the remote service will be highly receptive for clients that are valuating smaller physician practices (1-5 exam rooms)

MRG’s auditing services offers a comprehensive solution for any need:

  • Appraise Now™
  • Desktop Appraisal Service
  • Remote Auditing Service
  • Onsite Inventory & Appraisal Service

RemoteAuditPic

How much is your surplus costing you?

It’s that time of year again, spring is around the corner and the topic of spring cleaning comes into focus.  It’s amazing how much accumulates over the winter months when everyone is in hibernation mode.

For hospitals, the warehousing of surplus medical equipment can have significant costs associated with storage.  U.S average for industrial space can range anywhere from $6.00 – $24.00 per square foot to rent.  Building industrial space can range from $30.00 – $40.00 per square foot.

warehouse

Based on the number of assets in storage these figures can escalate very fast.  Following are a few questions to consider as you take a stroll through your storage areas:

  • Why are we storing the equipment?
  • Is the equipment ever going back into service?
  • How long has this asset been in storage?
  • What is the cost of the space being used to store assets?
  • Can warehouse cost be offset by selling assets no longer needed?
  • Are we losing value on the open market the longer we hold onto assets?
  • Can the storage space be better utilized for other hospital needs?

As you prepare for spring take time to evaluate area’s where surplus is stored and let us know if MRG can assist with valuating your current needs and developing a game plan to increase your return on investment.

Turn idle assets into cash

Surplus

Is your organization maximizing returns on capital purchases? 

 Idle assets may be costing you money when they can potentially generate money.

 

Idle assets tie up valuable storage space, depreciate in value each day they sit idle, and may be costing the facility money if still on the operating ledger.

Look to the experienced staff of Manage Resource Group, Inc. to provide a solution for idle assets.  Our team of professionals have helped many clients obtain the highest possible return on capital assets including all modalities of movable medical devices and imaging equipment.

MRG can help:

  • Identify FMV for your assets
  • Pay top dollar for your surplus equipment
  • Coordinate pick up with no shipping/handling/storage fees

If you are currently storing idle assets, give MRG a call, and our team would be happy  to review any available assets.  You can also email equipment lists to info@manageresourcegroup.net and a representative will contact you to discuss potential revenue returns.

 

When Hospitals Buy Doctors’ Offices, and Patient Fees Soar

 

CostofHealthcare

Healthcare has seen a great deal of mergers and acquisitions over the past few years.  As this trend continues it’s important for both hospital and physicians to streamline processes after an acquisition to benefit the patients they serve.  The two greatest issues that concern consumers is quality of care and cost.  When either of these two areas breakdown it puts unwanted pressure on the patient to find a new providers which is extremely time consuming and frustrating to maneuver.    The whole premise of the Affordable Care Act is to provide coverage to the consumer at a reasonable cost while increasing quality of care the providers delivers.  The attached NY Times article highlights that there are areas that will need to be modified to make this happen.

http://www.nytimes.com/2015/02/07/upshot/medicare-proposal-would-even-out-doctors-pay.html?&_r=0&abt=0002&abg=0

January 2015 Newsletter

Are remote audits for physician practice acquisitions right for your organization?

PhysHandshake

Physician practice acquisitions are part of many health systems strategic plans for 2015.  If your organization is targeting smaller practices and a third party onsite audit is not cost effective what is one to do?

During the due diligence process, hospitals will have personnel onsite at a physician practice looking at multiple areas of the business gathering information to determine a fair offer to submit to the physician.  i.e. revenues, charts, real estate, tangible assets etc.

Maximizing a site visit with today’s mobile technology can assist when gathering information on tangible assets, minimizing stress on practice employees and patients.

It can be very difficult to capture all demographics associated with tangible assets or provide enough information to a third party firm to properly appraise. If you’re relying on an asset ledger provided by the physician office it may not provide a clear picture of assets located in the property.

RemoteAuditPic

Following are benefits of working with a third party appraisal firm to conduct remote audits:

  • Cost effective way to target smaller practices (1-5 exam rooms)
  • Remote audits are cost comparative to a desktop appraisal
  • Only onsite tool needed to conduct a remote audit is a smartphone (blue tooth optional)
  • Auditing firms create the report remotely as you call out information from the practice. This eliminates hand writing information and transferring to a spreadsheet for the auditing firm to appraise.
  • Auditing firms can guide you where to look for information i.e. manufacturer, model, serial number etc.
  • Auditing firms that specialize in medical equipment know
  • Remote audits provide flexibility to conduct onsite work after hours or at the convenience of the physician minimizing disruption
  • Smartphones allow you to send pictures when needed
  • Third party travel expenses are eliminated
  • Turn time on deliverables is increased significantly

As you target physician practice acquisitions considered the benefits of partnering with an auditing firm to conduct a remote audit to appraise tangible assets.  Acquisitions can be very complex and time consuming.  Remote audits can provide a cost effective option to support work associated with the due diligence process.

 MRG Projects:

MRG recently completed inventory and appraisal projects for a Spine Group, Skin Therapy Clinic and Sleep Center in Ohio.

MRG Appraisal of the Month:

 PhilipBV

Philips BV Pulsera C-Arm, FMV: $16,000.00

MRG Hospital Fun Facts: 

In 2012, a Texas Hospital billed a woman $4800 after she was in an accident. Once the hospital found out that she received an insurance settlement, they sent her a new bill for $20,000+ and filed a lien against her property to get it

 

 

Follow Manage Resource Group, Inc. on LinkedIn and get a free Appraise Now

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Follow… 

Manage Resource Group, Inc.  

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Stay connected with up-to-date information and news on inventory, appraisal, and resale management services when you follow Manage Resource Group, Inc. on LinkedIn! 

Follow Manage Resource Group, Inc. and receive

1qty Free Appraise Now™

valuation for your medical equipment

appraise-now-tm button - white bkrd

Appraise Now™ brings equipment appraisals to your finger tips. A secure

web-based approach to questions surrounding equipment fair market values

            Identifying Values For:

OEM Trade-In

Lease Buyout

Property Tax Valuation

Insurance

Replacement Cost

Fair Market Assessment

Sale to Doctor or Third Party

Healthcare Consolidation Continues

beaumontHealthcare consolidation was very active in 2014 and I expect 2015 will bring more activity as health systems look at long term strategies for growth and operating under the new rules applied by the Affordable Care Act.    The question at hand is will mega system be the wave of the future and how will that impact costs for the consumer when these mega system monopolize market-share?

Integration of cultures from different hospitals will also challenge these larger mergers as they look to compete.

The latest merger to impact the Michigan market was the formation of Beaumont Health which includes the integration for the following systems:  Beaumont, Oakwood and Botsford.

http://www.healthleadersmedia.com/content/LED-312258/Incoming-Beaumont-Health-CEO-Ready-for-Integration-Challenge

5 Issues That Will Shape 2015 for Family Physicians

FamilyPhysician

With the New Year in full swing mergers and consolidations are still very active and will continue at a high rate for 2015.  With consolidation in the marketplace challenges may present themselves in some of the following areas:

  • Practice consolidation will affect clinical autonomy and create bureaucracies
  • Physician – Patient relations could become strained
  • Administrative headaches with ICD-10 coding requirements
  • Cost transparency for patients
  • Growth spike with newly insured patients and decline in physician numbers

http://www.healthcarefinancenews.com/slideshow/5-issues-will-shape-2015-family-physicians?p=0

2014 Year End Review – MRG Newsletter – December, 2014

FatherTime

As we close out 2014 and prepare for 2015 it’s good to reflect on equipment management accomplishments and challenges that organizations encountered this past year.

MRG would like to offer a few thoughts/questions about equipment management as we closeout 2014:

  • How many new physician practices joined the health system in 2014? How many will in 2015?
  • How are you integrating the assets acquired when a physician group joins the health system?
  • When was the last time you recorded an actual inventory of the capital equipment in service?
  • Does your organization have a policy and process in place to handle decommissioned assets?
  • Does your organization include disposition of assets when planning capital budgets for replacement equipment?
  • Will your organization be involved with a system wide technology transitions in 2015?
  • What is the greatest challenge you face when dealing with trade-ins, reselling surplus or scrapping excess asset with no secondary value?
  • How do you identify if surplus equipment has secondary market value?
  • How do you determine the best course of direction for decommissioned assets?
  • What is your highest priority when handling surplus equipment: generating revenue, freeing up space, eliminating time restraints associated with handling, etc.?

Every organization is different and with that comes specific challenges each organization faces. Educating providers with answers to equipment management challenges is something MRG is always striving to achieve.   The goal of our newsletters this past year has been to bring the expertise and experiences we have learned over the years and share them with you. We will continue to provide comprehensive information to assist your equipment management needs for 2015.

The entire MRG team would like to wish you and your organization a Merry Christmas and a Happy 2015!

Manage Resource Group, Inc. is hiring!

MRG logo - letter size-5-2011

 

 

Manage Resource Group, Inc. has the following part time position available:

Lead Generator / Marketing Assistant
Berea, Ohio – Negotiable

 

Responsibilities:

  • Generate leads through contacting hospitals/non-acute sites/service companies via telemarketing, email marketing
  • Record information in MRG contact database
  • Report leads weekly to MRG personnel
  • Work with current business partners
  • Increase MRG’s web presence via networking websites (Website blog,LinkedIn, Twitter, Facebook, etc )

Qualifications:

  • Telemarketing experience preferred, but not required
  • Effective and excellent interpersonal, communication and presentation skills.
  • Extensive knowledge of key programs – PowerPoint, Excel, Word, Access, comfortable in common web applications.

An Equal Opportunity/Affirmative Action Employer M/F/D/V

About Manage Resource Group:

Manage Resource Group, Inc. was established in 2007 with a client focused approach that specifically targeted the challenges equipment management places on healthcare providers. Our business model was structured to manage three specific areas: Inventory, Appraisal and Resale Management Services.

Please send resumes to: info@manageresourcegroup.net

 

What is the character of your business?

Many of us have heard the story of Leah Still who is the daughter of Devon Still from the Cincinnati Bengals that is fighting stage four cancers.

On Thursday night in a primetime showdown of the battle of Ohio the Cleveland Browns and the Cincinnati Bengals hit the field.  As a Browns fan the game was great to watch because our beloved Browns won.  But there was one moment in the game that stuck with me as I watched.

At the end of the first quarter the Cincinnati Bengals welcomed little Leah onto the field and money raised from the sale of Devon Still jerseys was donated to Cincinnati’s Children’s Hospital.

Hoyer At that moment the Browns quarterback (Brian Hoyer) walked over the to the Bengals sideline and approached Devon Still and gave him a hug.  Here in the heat of battle against a divisional opponent the football game became secondary.  This was one father reaching out to another to show support.  Whether you are a Hoyer fan or not this jester showed me the true character of the man behind the offensive helm of the Browns.

Companies spend millions of dollars each year to market their products and services, but if the character of the company behind those product/services is questionable it will ultimately show itself to customers.  Building a company takes an intense amount of time, effort and money.  As a representative of MRG it is my hope that our clients don’t just look at the services we provide but can see the character of the company that is working for them.  Millions of dollars on marketing campaigns don’t mean anything unless the character of the company it promotes is true.

Our prayers and support go out to Devon and Leah Still as they battle this illness.

October 2014 Newsletter

Importance of demographics captured during inventory audits PART III

Outpatient practice I&A services collage

As we conclude our series on the importance of demographics captured during inventory audits we will shift our focus to the final two bullet points outlined below.  Condition Assessment and Notes.

  • Name of the practice
  • Facility location
  • Physical location of asset on property
  • Manufacturer of the asset
  • Model of the asset
  • Asset description
  • Asset serial number
  • Condition assessment
  • Notes about the asset

Condition assessment: is an opinion of the ongoing usability of an asset based on the physical condition and apparent operability of the asset. This opinion supports the appraised value and informs both buyer & seller on the assets viability for future use.  It also highlights devices that might need to be replaced in the near future.  Criteria that impacts assessments are:  condition, age, technology, clinical support etc.

A typical four point scaling system might include the following:

  • 4 = like new and of current technology
  • 3 = well used but still useful and of current technology
  • 2 = used, and older technology in line for replacement
  • 1= very used, in rough condition in need of immediate replacement

Notes about the asset:  provides a general area to make comments regarding the condition, accessories, options or other pertinent information not captured in the typical demographics that can affect the value of the device.

Inventory reports should provide a clear picture for both buyer and seller of tangible asset located within a property, the fair market value of those assets and methodology used to obtain FMV.  Its not uncommon for firms to take digital pictures of assets and incorporate them into reports.  Audit reports should provide an unbiased view of a devices fair market value and be supported by current market conditions.

MRG projects:

MRG completes fair market valuation exceeding $9,500,000 for northeast medical group.

 

MRG conducted I&A audits in Ohio, Kentucky and Illinois.

 

MRG’s Appraisal of the Month:

Palomar Icon Laser, FMV: $47,000.00

PalomarLaser

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

 

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fb logofb logo

HEALTHCARE IS GOING RETAIL

walmart

Shopping List:

  • Bread
  • Milk
  • New pair of shoes
  • Get physical
  • Get prescription for sinus infection

Seem like this is an odd shopping list? Well, it’s more of reality that you might think.  Retail stores are jumping into healthcare.  You will no longer need to schedule that annual physical with your family physician.  Walmart is making primary care services available within the walls of their stores.  The idea is to provide accessibility with our crazy schedules at a fraction of the cost of a typical medical offices visit.

Yes we are in the early stages of this new venture, but hopefully pressure created from alternative primary care services will drive cost down at your family physician office.

Why Walmart and Nontraditional Players Could Be Formidable Forces in Health Care

http://www.hhnmag.com/display/HHN-news-article.dhtml?dcrPath=/templatedata/HF_Common/NewsArticle/data/HHN/Magazine/2014/Sep/Editors-Notes-walmart-clinics&utm_source=daily&utm_medium=email&utm_campaign=HHN