The healthcare industry wastes about $700 billion in expenses every year, according to a 2009 Thomson Reuters report. And with nearly 20% of US hospitals in danger of closing due to financial concerns, finding cost-cutting solutions has become crucial.

What most facilities don’t realize is that how you use your equipment can make or break an operating budget. The US spent over $44 billion on medical and healthcare equipment in 2015, yet hospital equipment has a 42% utilization rate.

That means medical facilities around the country end up spending billions of dollars a year purchasing equipment that isn’t being used. On top of that, a low rate of utilization means lost revenue through other maintenance costs.

This underutilization doesn’t just apply to mobile assets such as IV pumps, telemetry units, and wheelchairs, which can be easily misplaced or stolen. It also applies to installed equipment such as imaging or surgical equipment that is less likely to be used on a regular basis.

By transferring larger assets to networked facilities that need them, health systems can cut down on equipment underutilization and budget waste.

Asset transfer is the practice of moving equipment within a hospital system or network. For example, if Hospital A has an unused asset and Hospital B plans to spend $X for the same asset, they can save the purchase expense by simply transferring the asset from A to B.

Transferring Your Assets with the Private Exchange

BidMed’s Private Exchange facilitates connections within hospital systems, acute care or surgery facilities, and private practices. “Today, those connections are not really being made,” said BidMed Co-Founder and President Joanne Frogge. Or at least “not being used as much as [they] should be.”

With an exclusive network and resale platform, the Private Exchange creates an ecosystem of local and national healthcare facilities and equipment. It also helps subscribers transfer and sell assets with an all-in-one tech suite that also offers an inventory app and auction platform.

In many hospital systems where equipment and asset transfers might get lost in giant distribution email lists, the Private Exchange offers a dedicated, in-network marketplace. Individual facilities can check for equipment they need within their system or share details of items they no longer need.

How the Private Exchange Works

To access the Private Exchange, your system or facility has to be set up with an account and annual subscription. When a typical health system signs up, all affiliated satellite facilities get their own login under the same subscription. These could include outside acute care campuses, surrounding ambulatory surgery centers, or even physician practices.

They can then utilize the tech suite to upload inventory to transfer or sell. The tech suite includes an app, which captures data and images of assets and uploads them to the Surplus Management System (SMS). The web-based SMS allows you to manage your inventory, request fair market reports, sell equipment via auction, and access the Exchange.

These internal transfers help maximize asset utilization and reduce system-wide capital costs with three easy steps:

1. Our user-friendly interface allows appointed admins to list their assets for transfer or sale directly from their SMS inventory list.

2. In-network facilities can view all available assets and make requests on the Private Exchange.

3. Admins review and manage requests in real-time through the SMS.

Any items not transferred within a specified time period can be re-posted on the Public Exchange auction platform for open sale.

The Private Exchange is open to inter-system facilities, multiple health systems, collaboratives, and national group purchasing organizations. It also offers different levels of access for all levels of facility employees, whether they process inventory, request equipment, or make budgeting decisions.

Want to learn more about the Private Exchange? Get in touch to schedule your software demo and ask about our annual subscriptions today.