Monday, September 14, 2015

Creating Medical Equipment Savings After a Merger or Acquisition

With all the madness surrounding acquisitions, most hospitals overlook a tremendous opportunity to create incremental and recurring savings from the deal: it's called initiating a medical equipment standardization strategy and it literally could save your hospital millions of dollars every year.

Fleet standardization tends to be the most overlooked activity in a hospital merger or acquisition.  And while it offers significant savings opportunities, it is also incredibly difficult. The accurate information you need to make smart decisions about inventory and service contracts is hard to find; as is figuring out the value and what to do with all that underutilized equipment that turns up in these deals.

Here are 3 great tips to help you achieve 12-16% annual savings as part of a medical equipment standardization following a merger or acquisition:

1. Identify the Best Pricing in the Market When Supplementing Your Fleet - More than likely, your hospital or health system will want to standardize to one equipment manufacturer in order to make it easier on staff and service engineers. You will most likely have to purchase brand new equipment to supplement your fleet. Before you buy, make sure to benchmark any quotes you receive - this will likely save you 12-16%.

2. Recover Maximum Value for Underutilized Assets -As your hospital begins to standardize the equipment fleet, you will need a strategy to maximize the value of equipment no longer needed. It is important to complete a full inventory of equipment sitting idle or pending replacement and understand the true market value of this equipment to recover maximum value for any trade-in or resale transaction you will be making in the near future.

3. Save Money Buying Quality, Pre-Owned - When supplementing your equipment fleet, you might not have enough capital budget dollars approved to buy all new equipment. Why not go pre-owned?  You can always find quality, pre-owned equipment at up to 40% less than the cost of new. Also, your clinical engineering team can save on service costs by keeping a few pre-owned systems around for parts replacement or loaners while your equipment is being fixed.

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