MRG Wising you a Happy Thanksgiving!
Manage Resource Group, Inc. is thankful for another successful year. We appreciate your business and look forward to assisting with your equipment management needs in the future.
Wishing you and your family a happy and healthy Thanksgiving.
MRG’s offices will be closed on Thursday 11/26 and Friday 11/27.
Manage Resource Group, Inc.
Manage Resource Group, Inc’s. Remote Auditing Service
For needs associated with smaller practice valuations MRG has created its Remote Auditing Service.
With advancements in smartphone technology, what would typically require a site visit from MRG’s audit team can now be accomplished remotely.
The program allows clients to work directly with our audit team to identify assets located in properties. MRG offers clients industry expertise capturing demographics associated with each asset and MRG handles data entry, formatting and fair market assessment for the project.
The service is more comprehensive then a desk-top appraisal at a fraction of the cost for onsite services. MRG anticipates the remote service will be highly receptive for clients that are valuating smaller physician practices (1-5 exam rooms)
MRG’s auditing services offers a comprehensive solution for any need:
- Appraise Now™
- Desktop Appraisal Service
- Remote Auditing Service
- Onsite Inventory & Appraisal Service
Under the new leadership of Republican candidate President Donald Trump, the healthcare industry may experience serious changes to the Affordable Care Act. With a republican majority in both the house and senate, we can expect to see a move toward more mergers and consolidations in the healthcare industry. With regards to the ACA, Dr. Gary Kaplan, CEO of the not-for-profit Virginia Mason Health System in Seattle said, “I think that we can put together great minds and make some further improvements and hopefully take it out of being a political football.” The changes that Donald Trump talked about throughout the presidential race included repealing and replacing of the ACA. I think the ACA will require modifications to its current state before repeals are carried out. This will be a slow process in modifying the ACA and the Republican House will need to figure out ways to help people afford and maintain their coverage.
Hospitals take on a variety of costs associated with storing surplus medical equipment. Storage can be managed in-house or through a third party offsite warehouse. When medical equipment is decommissioned in a hospital, they typically move the surplus into their warehouse, an onsite shell space not being utilized by the hospital or an offsite third party storage facility. Once there, hospitals rarely manage the surplus equipment in a timely fashion.
Costs are then associated to these assets through storage fees, warehouse labor, and cost of square footage if the space is rented etc.:
- Material handling fees range from $8.00-$11.00 in handling of a pallet or piece of equipment.
- Warehouse labor average wage is $31.50 per person in maintaining a warehouse.
- If a hospital is renting a space, the average cost for per square foot ranges from $4.00-$25.00 depending on location.
- Hospitals can also incur cost associated with insurance for surplus in storage
- Depreciation in value for surplus that can be resold but is sitting in storage
- Lost revenue using new construction shell areas for storage instead of billable services
Applying these costs to one piece of equipment for an extended period of time can add up. When you factor in a significant amount of surplus equipment, it can be surprising how much money the hospital is spending each month for decommissioned assets. The “out of sight, out of mind” concept is costing hospitals money, therefore it’s extremely important to have a process laid out for assets removed from service. Some options are selling on the secondary market, reutilizing elsewhere in the health system, donating, trading in, parting out to maintain current fleet or scrapping.
MRG completed an inventory and appraisal project for four physician practices located in WV with an appraised value of over $700,000.00
MRG Appraisal of the Month:
Tanita TBF-310 Body Composition Analyzer
MRG Hospital Fun Facts:
As part of an ongoing study of out-of-body experiences, 25 hospitals have special messages strategically placed near ceilings so they can only be read from above