Importance of demographics captured during inventory audits PART III
As we conclude our series on the importance of demographics captured during inventory audits we will shift our focus to the final two bullet points outlined below. Condition Assessment and Notes.
- 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
Condition assessment: is an opinion of the ongoing usability of an asset based on the physical condition and apparent operability of the asset. This opinion supports the appraised value and informs both buyer & seller on the assets viability for future use. It also highlights devices that might need to be replaced in the near future. Criteria that impacts assessments are: condition, age, technology, clinical support etc.
A typical four point scaling system might include the following:
- 4 = like new and of current technology
- 3 = well used but still useful and of current technology
- 2 = used, and older technology in line for replacement
- 1= very used, in rough condition in need of immediate replacement
Notes about the asset: provides a general area to make comments regarding the condition, accessories, options or other pertinent information not captured in the typical demographics that can affect the value of the device.
Inventory reports should provide a clear picture for both buyer and seller of tangible asset located within a property, the fair market value of those assets and methodology used to obtain FMV. Its not uncommon for firms to take digital pictures of assets and incorporate them into reports. Audit reports should provide an unbiased view of a devices fair market value and be supported by current market conditions.
MRG completes fair market valuation exceeding $9,500,000 for northeast medical group.
MRG conducted I&A audits in Ohio, Kentucky and Illinois.
MRG’s Appraisal of the Month:
Palomar Icon Laser, FMV: $47,000.00
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