MEDICAL EQUIPMENT
Distance no object for equipment resale specialist
David Dunning, Marketing executive at Hilditch, which specialises in selling unused and surplus medical equipment for the healthcare sector, discusses when may be the best time for NHS Trusts and other healthcare providers to repair, replace, or sell such ‘kit’. Hilditch’s services include clearing hospital sites of surplus or unused medical equipment and re-selling it, and he also describes how the company facilitated the resale of a large volume of unused specialist medical, commercial catering, general site, and facilities equipment, ‘left over’ following the transfer of staff and medical facilities from the ‘old’ to the ‘new’ site of The Balfour Hospital on the Orkney Islands.
The Orkney Balfour Hospital ‘old’ site when the redundant medical assets were lotted, catalogued, and later auctioned. Right: Arrival at the award-winning Orkney Balfour Hospital new site (see case study, pages 79-80).
The question of when to replace your medical assets is not an easy one, and there are a lot of factors to take into account. For every piece of equipment there is invariably a fine balance between annual maintenance costs, what the item would be worth if it was sold, and the price to replace the item new. A medium-sized hospital of around 200-400 beds will often possess more than 20,000 medical devices, with a lifespan per item, on average, of 5-10 years. Obviously, equipment is not replaced all at the same time, which means that there is a constant flow of equipment coming into a hospital, and a similar sized ‘river’ of equipment going out. This is, however, a very generalised estimation, as bed count is not a good rule of thumb to estimate the value of medical assets and establishment possesses. Take into account specialist clinics like eye hospitals, for example, that have no beds, but a lot of high-value equipment.
The tipping point
A fine financial threshold resides between the item costing you more to repair than it would to buy new and sell the old; that is, of course, assuming that your healthcare organisation has the funds and the inclination to regularly replace medical
equipment. Here are a few red flags to look out for that indicate your organisation should start to think about replacing medical devices: Age: Based on regulations and guidance, you will have guidelines on when you should start to replace your equipment, and this will differ with the type of device.
Maintenance cost: If your annual maintenance cost for a particular medical device or piece of equipment exceeds 15% of the initial purchase price, then this is a good indicator that the item is becoming inefficient. Preventative product maintenance contracts are usually renewed every 3-5 years, and if you notice that your provider is negotiating a higher rate, then this usually indicates that it estimates a longer service time for one of your items. At this point it is not unreasonable to discuss with the company which item it is, and whether they recommend its replacement. Frequency of repair and downtime: If your device is disrupting patient services with the time that it is out of service, or the amount of errors it is creating during service, it can start presenting a danger to your patients, and it is certainly then time to think about other options.
The model stops being manufactured, or replacement parts stop being made: Good quality medical devices enjoy longevity in the market, as a brand’s reputation is built upon its equipment being known for being ‘a workhorse’, but if that model stops being produced, then there is likely to be a sudden depreciation in the item’s value. If this is of no importance to your organisation, you will still have to bear in mind the consequences a few years down the line. Needless to say, if you cannot obtain the parts to keep your equipment being maintained, then the item is destined for obsolescence. Bear in mind that you may still get half a decade of useful life out of the item before it heads for the WEEE pile, so consider contacting a resale agent to make the most from your redundant equipment.
Other factors to consider There are other factors to take into consideration when deciding that your devices are obsolete, including: n Equipment type: The type of device will have a direct effect on the general perception of when it should be replaced. Life support devices, such as dialysis machines, defibrillators, and
October 2020 Health Estate Journal 77
©Hilditch Group
©Hilditch Group
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