Hospital consolidations impacting capital equipment

2017 continues to be active with hospital consolidations.  Many stand-alone hospitals are being acquired by large health systems to gain market share and expand their geographical reach.  In many cases when consolidation occurs there is an influx of capital dollars infused into the acquired hospital.   These funds are used for equipment upgrades and equipment standardization to match product lines that are being used in the health system.  When new capital equipment is purchased, following are key points to consider during the technology transition process:

  • Create a timeline/calendar outlining incoming and outgoing equipment in specific areas
  • Have a clear understanding of equipment that will be decommissioned with 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 assets:

– Trade-in to the OEM for new purchase

– Re-deploy internally to a sister facility

– Sell on the secondary market

– Donate

– Salvage

  • 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
  • Identify fair market value on assets impacted by new purchases to better negotiate potential trade-in with OEM
  • If secondary market values dictate selling the assets, begin to identify potential buyers before equipment is removed from service


Integration of a hospital into a new health system can have a major impact on capital equipment.  Being proactive once the transition occurs will help decisions on assets displaced by new purchases.  Having a plan in place for decommissioned assets will minimize space requirements while maximizing potential returns on surplus equipment.

MRG Projects:  

Inventory and tagging multiple long-term rehab facilities in Kansas.  I&A services for acquisitions in OH, MI and KY

MRG Appraisal of the Month:

1qty Philips IE33 Vision Rev E Ultrasound with S5-1/L9-3/C5-2/D2CWC Probes FMV: $31,000.00

MRG Fun Facts:

You can pretend to be a patient at the Heart Attack Grill in Las Vegas. Diners must wear hospital gowns and wrist bands, and menu items include the quadruple bypass burger and flat-liner fries. Drinks are served in mock syringes and giant pill bottles.