Keeping costs down can be a struggle. According to Becker’s CFO Report, hospitals’ medical equipment lifecycle (MELC) costs average $93 billion a year. Of these costs, up to 16% will be lost due to inaccurate information and lack of resources.
One common weak point is maintaining an accurate inventory of capital assets. Tracking inventory throughout its lifecycle, from purchase to service and disposition, is a smart way to optimize your capital asset management strategy.
Here are three reasons why an accurate inventory is so important for your facility:
1. Asset Underutilization. Medical and healthcare equipment has a very low utilization rate (42%). This can mean huge revenue losses and higher expenditures for any facility. Without an accurate inventory to provide up-to-date information, it’s easy for signals to get crossed, resulting in unnecessary asset replacements or unused service contracts.
2. Capital Budget. Additionally, accurate inventory is important to properly manage capital budgets. Knowing which assets need replacement and when helps avoid last-minute purchases or repairs. A replacement schedule can also help disperse expenditures more evenly from year to year. Plus, if you forecast assets that will retire with retained value, you have more time to connect with an end-user buyer. In turn, this helps return more money by cutting out inflated costs from third party resellers.
3. Compliance. With thousands of assets to manage, keeping up with service contracts and insurance requirements can become complicated quickly. In fact, many hospitals carry coverage on equipment no longer on hand. Meeting mandated reviews and financial reporting requirements is also difficult without an accurate asset ledger. In addition, a clean inventory helps meet government and internal accounting requirements with minimal headache.
Creating and maintaining an up-to-date asset inventory is crucial for many reasons beyond the few we’ve mentioned here. By streamlining asset management, your facility can not only reduce overhead but also keep your assets in optimal condition while adding to the bottom line.
Accurate Inventory With BidMed
BidMed offers a range of inventory services including processing, reconciliation and accuracy reports, and data cleaning to help manage your assets effectively. In addition to our proprietary tech suite, these services give you the tools to create a secure cloud-based database, letting you manage, reallocate, or resell your assets all from one place.