The Importance of an Updated Inventory
- What exactly do I need?
- Do I have enough/too much of _______?
- Where will I put it?
You could be paying insurance, storage fees, and preventive maintenance for equipment that you’ll never use again. Keeping an updated inventory or reconciling your ledger can help you make informed decisions about both incoming and outgoing equipment.
Removing Nonexistent Assets: Old ledgers may still have equipment on them that are no longer at the facility. This means you could be paying insurance and storage fees on nonexistent assets. By removing them from the ledger, you save that money and avoid the potential mistake of thinking there’s enough of a particular piece or supply when you actually need more.
Updating Quantity: Another common mistake is being unaware that you do have usable assets in storage, so you end up buying new equipment. Consolidating the ledger allows you to see exactly what kind of equipment you have available and how many of each to avoid this pitfall.
Determining Need: If your inventory is old, you won’t know if what you have can properly support current patient volume and services. Some services may be used more or less than previous years, or you’ve discontinued a service altogether and still have equipment that you won’t need again. By comparing what you have to what the need is, you can get a better idea of how to efficiently allocate funds like ROI from resold equipment.
Deciding to Sell or Keep: Factors like condition and current needs can advise how you decide what equipment you want to sell versus keep. If it’s in good condition, look to see if it can be used elsewhere in the hospital or health system. If it’s old or excessive, it may be time to consider selling. Getting rid of equipment you no longer need will help to reduce unnecessary preventive maintenance costs and can bring in ROI or tax breaks depending on the method of disposal.
When every current piece of equipment is accounted for and tagged, it’s much easier to follow assets through their life cycle and stay on top of your equipment management strategy. In next month’s newsletter, we’ll dive more into how to utilize your ledger to address space constraints at your facility. As always, we are here for all your equipment inventory, assessment, and removal needs.
MRG Appraisal of the Month:
- Remote Audits for WV and MI acquisitions
- I&A for Kentucky and MI M&A activity
- Resale project to clear out warehouse for OH surgical hospital
- Surplus removal from OH hospital to clear space for COVID-19 supply distribution
MRG Fun Fact: