Is your hospital proactive or reactive with equipment replacement decisions?
For many clients the budgeting process for the next fiscal year is well underway. Capital equipment budgets are being developed by hospital departments to determine which assets will be replaced and which technology transitions will take place in the new-year.
Hospitals will purchase many different types of capital equipment for the upcoming year. With budgets soon to be approved, purchase orders will be sent and new equipment will be delivered. Does your facility have a plan for equipment that will be displaced by new purchases?
It’s not uncommon for hospitals to focus their attention on new equipment purchases during the budget review process but this is the best time to also identify what is going to happen with equipment that will be displaced by new purchases.
Being proactive during the budgeting process will minimize exposure decommissioned assets place on the facility once replacement budgets have been approved. Following are points to consider during the budgeting process in preparation for new equipment arrival:
- Create a timeline/calendar outlining incoming and outgoing equipment in specific areas
- Have a clear understanding of equipment that will be decommissioned by any new purchases
- Identify potential resale value for end of life equipment on replacement budgets
- Determine what is the best course of direction for displaced asset:
* Trade-in to the OEM for new purchase
* Redeploy internally to a sister facility
* Sell on the secondary market
- Develop a project plan that outlines what areas of the hospital will be impacted and personnel that will be involved in the transition process.
- Who will the key players be for new equipment arrival and decommissioned assets?
- Determine areas within the hospital that can be utilized for staging incoming and outgoing equipment to minimize patient and employee disturbance
- Utilize equipment fair market valuations to better negotiate potential trade-in with OEM on new purchases
- If secondary market values dictate selling the assets, begin to identify potential buyers before equipment is removed from service
Being proactive during the budgeting process allows the hospital flexibility to better manage decisions on what will happen with assets displaced by new purchases. Having a plan in place for decommissioned assets will minimize space requirements while maximizing potential returns on equipment impacted by new equipment purchases.
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