Are You Ready To Do This Right?

It's that time of the year when goals were just set and New Year's resolutions are still part of our every-other day vocab. 

While this topic is still relevant, let's chat how those of you working in healthcare with medical devices can help your facilities set a goal for successful end-of-use medical device decommission/resale program.

Saying you want to sell or you already sell medical devices outside your facility is not enough. 

If you Google "used medical equipment" your search will return dozens of companies unanimously promising to "buy your used medical equipment" and pay "maximum for your used medical equipment".

How do you know which company to select? How do you know if they are paying maximum when all of them make the same claim? Is selling your end-of-use medical devices to a vendor or accumulating them in storage for an auction even constitutes a program?  Absolutely not.

 

A successful decommission program must be Measurable, Dynamic and Strategic. 

 

Before you set it up, ask yourself and all stakeholders the following 2 questions:

1. Who in the facility will take ownership of the process?
2. Who will be our service provider?

Second question is critical and will make the biggest impact on your program's success, revenue, and available resources.

You need to decide if you want to work with a

• Liquidator - service provider that commonly liquidates devices through auctions.
• Used Equipment Vendor - will offer to purchase all available devices for nominal price regardless of device type, condition or age.
• Re-marketer - specializes in online and email marketing of equipment.
• Consignor - likely to take physical possession of equipment prior to sale completion.  
• Consultant - manages resale process, makes strategic recommendations, coordinates de-installations projects, manages logistics and standardizes process across the whole system.
• Yourself - self-administration of the program.

Completing the following 5 tasks to create a roadmap, use proper sales strategy and leverage negotiations:

1. Identify devices already removed from service.
2. Identify devices scheduled for replacement/upgrade this year.
3. Perform Market Demand and Price Analysis for both device groups.
• Adjust for: cyclical price fluctuation, current FDA recalls and manufacturer's notices.
4. Chart removal time line.
• Put dates on monthly calendar. You will start seeing projects from different Departments and Facilities that can be consolidated for potential cost reduction (ex: removal of obsolete fixed equipment).
5. Use this information to set an annual Sales Revenue Target!

These are the basic components to consider when setting a goal for successful program.

 

A goal will guide you and reduce surprises along the way. It will financially benefit your facility.  It will create consistency and transparency.  It will reduce liability. And, above all it will ensure you remain in control of the process.

 

If you continue to haphazardly handle end-of-use devices by storing them, misplacing documents for sold assets, consigning assets for mediocre service, chasing buyers to pick up sold devices, than you will continue to be frustrated by mediocre results and lack of process. 

Now is a great time to set a goal to implement decommission/resale program in your facility.  Do it the right way and you just may reach your Sales Revenue Target by June!

 

And, if you are planning to self-administer the program, Contact Us for a complimentary list of items you need to have in place before the launch.

 

If you would like to learn more about benefits of centrally managed Medical Equipment Decommission Program, please visit www.ecomedhtm.com or send an email to med@ecomedhtm.com.

Simple Goals Lead to Great Opportunities

Four years ago, EcoMed was found to educate and help healthcare providers to manage decommission of medical devices that were being upgraded and removed from use.
 
Our goals were simple: 

Share Knowledge

Provide Value

Bring Transparency

Deliver Results

Our mission was to help a healthcare community to implement a value-based process that will provide cost savings and consistent revenue through strategic disposition of medical devices on a global scale. 

 

While most companies focused on buying and selling medical devices, why did we pursue such an unconventional undertaking?

 

Here are just some of the reasons:

1. Because dealing with decommission of medical devices is frustrating, time-consuming and not in a budget for most Healthcare Supply Chain and service providers.
   
2. Because healthcare facilities have other priorities.  Providing patient care, improving patient experience and maintaining fiscal responsibility, are just to name a few.
3. Because there are thousands of medical equipment remarketers, resellers, dealers, auctioneers, refurbishers and underserved medical facilities and healthcare providers do not have the resources to get to know them and take advantage of their expertise.
4. Because according to CMS, the average American spent $9,523 on healthcare in 2014 and this amount is projected to surpass $10,000 this year! 

While managing decommission of end-of-use medical devices will not entirely obliterate this $10k price tag, personally, it makes me feel good to know that we as a company are doing something to help lessen this burden.

And, it brings me great honor to say that our efforts were recognized not only by some of the greatest healthcare facilities in the Midwest, but also by Premier, Inc. GPO.

 

One week ago, we were notified that EcoMed has been awarded a nationwide contract with Premier, Inc. for Medical Equipment Decommission Services.

 

It's a privilege to start sharing our knowledge with Premier members.  We look forward to showing that a managed process of decommissioning medical devices can result in measurable revenue and lead to

• Cost savings
• Process improvement
• Greater staff efficiencies

And above all, a direct opportunity for underserved medical communities to purchase medical equipment at affordable prices. 

We are thrilled to help healthcare providers around the country regain control over HOW their medical devices are decommissioned. And, we are proud to have been selected by Premier, Inc. to show HOW it can be done!

 

On a personal note, I'm grateful that EcoMed has been given a higher platform to make a difference in our healthcare community.  With great pride and humility, I look forward to continuing our mission and transforming the medical device decommission process one day at a time.


If you would like to learn more about the benefits of a centrally managed, in-house Medical Equipment Decommission Program, please visit us at www.ecomedhtm.com or send an email to med@ecomedhtm.com. 

This No Longer Best Practice is Now Getting Old

Trading-in older medical equipment for new medical device, is an aging and unfruitful practice of a Healthcare Supply Chain.  Healthcare systems that separate these two acts have a financial advantage because they can

1. Resell older equipment at market price, rather than nominal price paid by OEM 
2. Calculate true cost of equipment ownership
3. Maintain leverage in negotiating best price for the new device

Acts of procurement and trade-in are like “bride and groom,” it appears one cannot exist without the other.  But in reality, it is a poor marriage of incompatible entities, destined for cataclysm from the beginning. 

Trading-in equipment only complicates an already arduous process of procuring new medical device.  Among many dissatisfactions shared, the single, most frequent frustration expressed by 100% of Healthcare systems surveyed on this topic was

"Receiving substantially less than the Fair Market Price for trade-in equipment from OEM"

There are a multitude of reasons behind low prices paid by OEM for trade-in equipment but the most common one is due to OEM Trading Desk process.  Most OEMs have a Trading Desk that is responsible for collecting trade-in equipment details from all sales reps. 

These details are than distributed mostly to OEM-only contracted vendors who bid on available trade-in equipment.  Vendor with the best offer gets awarded the equipment. 

Of course, this is an oversimplified glimpse of what actually takes place.  But, without getting into semantics of the bidding process and how much of the vendor’s received offer is in fact given to the Healthcare system, this process devalues trade-in equipment at least twice from its fair market price.

Knowing about the general Trading Desk process, is the first step in recognizing that the relationship between procurement and trade-in acts is toxic. 

By separating these two acts into independent tasks, Healthcare systems can

1. Maintain an advantage during purchase negotiations for new device while
2. Retaining full control over resale of older equipment  

While it may not always be possible to divorce these two acts due to prior contractual obligations, it is certainly advisable and financially advantageous (in most cases) to explore and establish a formal, internal process going forward.  

In the past, trading-in older equipment was customary.  Today, in the age of value-based healthcare, continuing this aging practice is equivalent to mishandling organizational capital assets and funds. 

Managing and controlling resale of older equipment earmarked for OEM trade-in, is one of the simplest and guaranteed ways of creating additional revenue from an already existing and owned resources.