MRG News & Views – February, 2014 Newsletter

Resale Projects: Department / Facility Closures

equipment liquidation - facility closure

In last month’s newsletter we discussed what happens with equipment during a technology change-out. In this issue we will focus on department and facility closures. As with technology change outs there are a variety of reasons a department or facility may close.

  • The hospital is building or renovating a department within the hospital
  • The hospital has been acquired and the new owner is streamlining services within the health system
  • A transition facility is being built to accommodate growth and the old facility is closing
  • The board of directors have made the tough decision to close a facility because of economic impact
  • Market conditions are forcing consolidation to occur within a geographical region

There are many challenges and obstacles associated with a department or facility closure. Implementing some basic steps will minimize exposure equipment can have during the closure process:

  • Determine timing for closure and when equipment needs to be removed
  • Identify assets located in the property by conducting a physical inventory
  • Assess current condition of equipment and determine if the asset can continue to be utilized in the new area or another facility within the system
  • Determine current marketability of assets that will no longer be used
  • Identify best course of action for assets impacted by the closure i.e. trade-in, reutilized, resold, donated or salvaged
  • Determine what sales methodology makes the best sense when selling surplus i.e. onsite/online auction, tag sale/liquidation, direct purchase etc.

The key to minimizing stress with closures is to be proactive early in the process. Consult with experts that can help guide you during the transition and set clear goals /objectives for your facility during the closure process.

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MRG Projects:

MRG facility closure project:

MRG assisted an East Coast health system with the closure of a hospital in Carbondale, Pennsylvania.  MRG acquired the assets in the property soon after the facility closed and managed the deinstallation of imaging systems and disposition of all movable assets within a two week time period.  The health system generated more than $500,000 in the sale of the assets.

MRG department closure project:

MRG worked with a Michigan hospital to liquidate assets from an OB/GYN department that closed.  MRG identified all assets impacted by the closure and provided a turnkey sales solution that generated over $52,000 revenue during the engagement.

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MRG Fun Facts:

After the tough winter we have had so far, we really don’t need March to “come in like a lion…”  We just need to get through February!  Below are some fun facts about February as the month comes to a close:

The hand overturns calendar sheet isolated on white background

  • Google has reported that ‘February’ registers 423 million hits on their website while the misspelled ‘Febuary’ registers 310 million.
  • February 1865 is the only month that was recorded in history that did not have a full moon.
  • The only time a month begins and ends on the same day of the week is in a leap year.

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Contact MRG:

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 About MRG:

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

  •  Inventory services
  • Appraisal services
  • Resale management

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

MRG’s IT equipment inventory & barcoding services

Keeping proper records of incoming and outgoing IT equipment involves accountability, control, and accurate documentation. It is important for hospitals to have policies in place that clearly define how assets enter and leave the facility.

MRG It pics

Tracking IT equipment is particularly challenging since it exists in locations throughout the facility, and requires consistent updates and maintenance. Conducting a physical inventory of IT equipment; which may include PC’s, printers, servers, and workstations, allows the hospital to properly track and identify what computer systems are physically in the hospital. Tagging assets with barcode technology can automate the entire IT equipment lifecycle, which will assist with ongoing preventative maintenance service and software updates.

MRG’s asset inventory and tagging service captures IT equipment demographics including:

  • Location
  • Manufacturer
  • Model Number
  • Asset Description
  • Asset Number
  • Serial Number
  • New Barcode Tag

Identifying and managing the inventory of IT equipment is crucial to healthcare providers of all sizes. Hospitals can better manage their equipment with increased control and accountability, when implementing MRG’s inventory & barcode tagging service.

For additional information on MRG’s inventory and tagging service please contact one of our professional representatives at (888) 557-4797.

Private Practice acquisitions: Good or Bad?

Health systems have been acquiring private practices of all kinds of specialties. The trend started in the mid 2000’s and continues today. Is the acquisition model a profitable one for hospitals? A Utah based company has developed an analytics tool to measure revenue tracking and forecasting. What health systems may not realize is there are many costs to integrating a doctor’s practice into a hospital’s structure. Many up-front costs like IT infrastructure, EMR setup, and employee benefits will cause a private practice to look like a bad investment for the first few years, but that doesn’t mean it is.

Acquiring private practices can bolster other hospital departments such as the lab and imaging departments. Obviously, there are long-term benefits to employing off-site physicians. That said, it is imperative the acquisition process is efficient and accurate. Hospitals must know what they are acquiring (assets, personnel, liabilities, etc.). Facilities must have a solid acquisition process in place for the purchase. i.e., practice appraisal, analytics, implementation, etc.

The below article was referenced for this blog:

http://www.jhconline.com/physician-practice-acquisition-a-good-deal-or-not.html