Hospital Expansion and Renovation

Hospital Expansion and Renovation


With hospital growth and aging facilities comes the need for building expansion and renovations.  The impact of this goes way beyond brick and mortar.   Hospitals have plenty to consider prior to starting any expansion or renovation project:

  • Budgeting
  • Outlining calendar for engagements
  • Selecting third party firms (architects, construction companies, equipment planners etc.)
  • Planning for patient and staff impact/transition

Another area that is impacted by expansion/renovation projects are the assets currently being housed in these departments.   This might include but is not limited to medical devices, furniture, IT equipment etc.

With any project, knowledge = power and proper planning for expansion or renovations will assist with minimizing costs, delays and negative impact on staff and patients located in these areas.  When a hospital decides to move forward with an expansion or renovation project, it’s important to take a detailed look at assets housed in these areas.

Third party vendors can provide a detailed inventory of assets with condition assessment outlining remaining useful life to assist in the decision making process.  The following questions can be answered with information captured in asset audits:

  • What assets do we have?
  • Can we use current assets in the renovated or expansion areas?
  • Are assets technologically viable for the new area or should we plan on replacing?
  • Are the assets streamlined with technology throughout the system for PM’s?
  • How will we manage the equipment transition process?
  • What new purchases will be required?
  • Can we use old assets for trade-in credits on new purchases?
  • Do we have storage space to accommodate assets the will be reused?
  • What is the best course direction for assets that will not be traded-in or reutilized?
  • Who will handle the disposition process for these assets?

As with any project, proper planning lays the groundwork for a successful job. Understanding the impact of assets housed in these areas will play an important role as the expansion or renovation progresses.  Including assets as part of the strategic process enables you to properly prepare for the new/renovated location.

MRG Projects:

  • MRG conducted an inventory and appraisal project for a MI Medical Group with assets valued at more than $600,000.00
  • MRG completed liquidation of medical assets located in an Ohio Surgery Center

MRG Appraisal of the Month: 

GE/OEC Flexiview 8800 C-armoec8800

-Fair Market Value: $30,000.00




MRG Hospital Fun Fact:

I see big bucks in your future. Could a CAT scan cause you to lose your psychic powers? A Philadelphia woman sued Temple University Hospital in 1976 for her loss and was awarded $988,000. I guess she didn’t see that coming.
Source: Friday Fun Facts About Hospitals