In our previous newsletters, we have mentioned the many options for health care inventory & appraisal, how it is done, and who uses it. If you are questioning whether or not your facility is in need of this service, in this issue we will discuss ‘when’ is the right time to conduct inventory & appraisal.
When – you should consider a healthcare inventory & appraisal project:
• “When” a capital audit has not been performed in the last 5 years – while hospitals conduct annual audits for medical supplies; it is recommended that hospitals conduct a system-wide capital inventory every 3-5 years. If a capital audit has not been performed over the last 5 years, assets physically located on the property may be out of line with accounting ledgers and what is recorded on the hospital books. Facilities utilize inventory & appraisal for auditing current equipment and reconciling asset ledgers. Having an accurate accounting ledger helps administrators make informed decisions on equipment that needs to be serviced, upgraded or replaced.
• “When” the facility plans to install new software to manage and track assets – software is very expensive and it can only provide feedback on the data that is entered into it. Bad information in results in bad information out. If accounting ledgers have not been reconciled for a few years now is the time to make sure the information on those ledgers match what is physically located in the property.
• “When” hospital expansion, construction, or transition to a new facility is on the horizon – it is necessary to have an accurate ledger of assets located at the current property to make informed decisions on which assets will be reutilized in the renovated area or new facility. Identifying what you have will assist the budgeting process for any new purchase required during the transition. In addition, with any construction project, in order to establish credit lines, refinance, or expand current business operations, it helps to know the current value of assets within the property
• “When” Facility or department closures occur – if you are planning to close a department due to elimination of services or the hospital is planning to close because of financial reasons an audit may be required to identify assets that can be reutilized at a sister hospital or preparation for the sale of the property and/or liquidation of the assets.
• “When” Medical practice / clinic acquisition or merger is being negotiated – if your system is planning to buy or sell a clinic or practice, it is imperative that you have a complete understanding of the assets at the property. These may include medical, IT, kitchen equipment, and furniture etc. Identifying the fair market value of hard assets will assist with negotiating the purchase or sales of the clinic/practice.
Once you’ve determined that it’s the right time to engage a third party company to assist with a capital audit the next step will be understanding “how” to prepare for smooth project engagement. Our May newsletter will provide tips on how to prepare your facility for a successful inventory & appraisal project.
Manage Resource Group celebrates 6th Anniversary!
Manage Resource Group, Inc. (MRG) is pleased to announce that this month we celebrated our 6th year anniversary. MRG is very thankful for the success we have had over the years and would like to thank our loyal customers for their continued patronage. We have worked hard to establish MRG as a trusted health care equipment specialist in a relatively short period of time. The management team of MRG looks forward to continuing to serve your needs by providing our clients with
- Resale Management Services
MRG in the News:
Manage Resource Group, Inc. is pleased to announce that its company has been awarded as a contracted supplier by the Premier Healthcare Alliance for the following services:
Physical Inventory – Facility wide
(effective May 1, 2013) – Contract # PPPH16MRG01
Equipment Liquidation and related services
(effective June 1, 2013) – Contract # PP-MM-230
Manage Resource Group, Inc. is thrilled for the opportunity to be re-awarded our inventory agreement and also add liquidation services to the Premier contract. Now Premier Healthcare Alliance members have access to contractual savings on the full range of services provided by MRG._______________________________________________________________
MRG’s Fun Facts:
Gustave Eiffel, designer of the Eiffel Tower, enjoyed a successful career as an architect despite having dyslexia and a paralyzing fear of heights.