Resale Projects: Department / Facility Closures
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.
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.
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:
- 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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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