Healthcare acquisitions are still in full swing and MRG thought it would be beneficial to take a closer look at demographics that are typically associated with inventory audits. When planning to purchase or sell an outpatient facility, tangible assets can account for approximately 20%-60% of the property’s overall value.
Tangible assets will typically include medical equipment, IT, business equipment, furniture, security systems etc. Capturing demographics and appraising each asset provides a detailed view for both the buyer and seller. Over the next few months we will take a closer look at the demographics typically captured during an audit and the importance of that information:
- 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
Name of the practice: When developing an audit it’s important to capture the legal name of the property that is being inventoried. This may be the business legal name or the name of the doctor who owns the business. It should be identifiable on both the inventory report and on the cover letter that accompanies the report. This information highlights ownership of the asset which is important during an acquisition transaction because another entity will be purchasing those assets and title of ownership will need to be transferred.
Facility location: Audits should also contain the physical address of the property. This would include the suite number if applicable. There are times when two business entities under the same ownership will be operating under one address. If auditing both entities one should note this in the report under the facility field and be sure assets are identified with the proper entity. This is very important if the business entity has multiple locations and the report needs to show what assets belong to each location.
In the next newsletter we will focus on demographics associated with each asset during the inventory process.
Manage Resource Group, Inc. recently completed an inventory and appraisal project for a gastroenterology/endoscopy center that included three procedure rooms and 11 exam rooms.
MRG’s Appraisal of the Month:
Keiser Functional trainer
model: AFFINITY 003030P
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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