Last month we discussed the different scenarios hospitals liquidate medical equipment. Now we will discuss the ways a facility can liquidate the equipment from a shut-down campus. Whether the hospital has closed, merged into another location, or transitioned into a new site, many pieces of equipment must be sold/removed so the old building can be properly turned down. Administrators have options when deciding how to liquidate their left over equipment. They can:
•Give employees opportunity to buy some items
•Have an onsite auction of remaining equipment
•Have a third party conduct tag sale
•Bid surplus as whole lot and have removed immediately
•Any combination of the above
It is a nice gesture for facilities to allow their employees to buy office furniture and other items from the closed hospital at a reduced rate. This resale route alone will not empty the closed hospital. Usually an employee sale takes place prior to a third party conducting the sale of the medical equipment.
Auctions can be an effective resale method. With current technology, it is possible to have onsite buyers bid on your equipment as well as buyers from around the world bid via an internet connection. Auctions are sensitive to the day of the sale and the amount of buyers who register. Equipment can be sold severely under market value if enough buyers are not bidding on the sale. Selling all the equipment on one specific day puts a lot of pressure to get that day right.
Hospitals can also hire a third party vendor to conduct the sale. Onsite tag sales last longer than a 1 day auction but ensure the facility is getting the true value of the equipment being sold. During this time, all departments of the facility can be liquidated: Imaging, OR, Lab, Dietary, Administrative, etc.
If a hospital is under a time constraint, they may choose to bid all remaining equipment as one lot and pick a vendor to remove everything as the bid is awarded.
There are many variables that will decide the best route to liquidate equipment. What will happen to the old building, available time to conduct resale, administrator’s preference, are just a few. Next month’s newsletter will provide more insight on resale options for your liquidation needs.