MRG Newsletter July 2019

Optimizing Your Equipment Buying Strategy

Hospitals and health systems regularly seek to upgrade their medical technologies but could lose money if they make reactive decisions regarding the older, existing equipment after it’s been replaced. A more proactive approach to this challenge is looking at the assets affected by change-outs as part of the initial buying strategy.
Especially with the rising popularity of multi-state health system consolidations, we encourage healthcare executives to utilize group-buy opportunities as an avenue to reduce capital spend and minimize the exposure capital equipment places on operational support throughout the equipment life cycle.
  • OEMs often give a discounted per-item price when bought in large quantities or with other modalities of equipment by the same manufacturer.
  • Individual facilities’ spending on repairs, disposable accessories, etc. can be better predicted and managed if using a consistent, established vendor.
  • A streamlined equipment fleet is more easily maintained by biomedical and clinical engineering teams. They learn to master those specific equipment pieces and gain the ability to oversee multiple sites as needed.
  • Training programs based on homogenized equipment can be implemented across facilities to help clinicians adapt more efficiently and knowledgably to the incoming technology.
  • The same level of technology is being used to support patient procedures, thereby standardizing the quality of care and achieving better clinical outcomes throughout the system.
  • A third-party fair market valuation of assets displaced by new purchases can be compared against the OEM trade-in value to identify the best method of asset disposition.
  • Equipment is easier resold as a lot rather than 1-2 pieces here and there. Individual items could sell for only 10% of the equipment’s value, whereas turnkey project-based sales see net returns of up to 95%.

System-wide equipment change-outs may seem daunting and expensive at first, but they bring long-term cost efficiency as your health system grows. By being more strategic with equipment purchases, you will see improvements at every stage of the equipment life cycle and generate a higher return on investment for your bottom line. Email us at to receive our whitepaper and learn more about our consulting services.

MRG Projects:
  • Asset inventory and tagging for 16 locations of FL health system
  • I&A services for medical group acquisition in eastern PA
  • I&A services for surgery center acquisition in MI
  • OR resale project in southern OH
  • I&A services for pain management and surgery center acquisition in OH
  • 3-year PaidFirst Resale Agreement with OH health system
MRG Appraisal of the Month:
GE Venue 50 ultrasound
Forced Liquidation Value: $9500.00



MRG Fun Facts:
The most dangerous time to go to the hospital is the month of July. Death rates increase 8%-24% each July due to the most experienced medical residents graduating and leaving hospitals as the new physicians arrive.