| When was the last time your hospital conducted a fixed asset inventory? Many hospitals conduct annual inventories on supplies and pharmaceuticals but overlook the savings potential of improving their capital asset ledgers. Did you know that inventory audits and reconciliation of capital assets in the hospital is recommended every 3-5 years? Here is why… |
| Your hospital’s capital assets (clinical equipment) represent the largest investment that hospitals & health care systems make. Yet, many hospitals rely on outdated ledgers generated from multiple departments to track their assets. It is important to note that departments must not only track equipment that is used daily, but also assets that may be stored in vacant rooms, storage areas or offsite warehouses. Over time accounting ledgers become compromised because of breakdowns that exist when new equipment enters the facility and old equipment is removed from service. The accounting ledger becomes inaccurate unless the hospital has a system in place for implementing a capital audit and conducting ongoing reconciliation of their asset ledger. Also required, a policy outlining proper protocol for additions and deletions to the ledger when equipment enters or leaves the property. What hospitals may not realize is conducting a capital inventory can yield substantial tax & insurance savings in depreciation deductions. Just a little bit of planning can go a long way come tax time. If assets are no longer in service and not removed from the property, hospitals continue to pay property taxes and insurance on these assets. This does not account for the cost of square footage these items are impacting as well. Consider the “ghost assets” that may be at your property. Every hospital and health system has equipment that may be lost, stolen, unusable, or no longer on the property. If your hospital does not conduct an inventory on a regular basis, these items may still be listed as active assets on the accounting ledger. According to a national news report, there are 5 ways in which hospitals suffer from inaccurate asset records: 1) Paying to insure non-existent capital assets 2) Carrying excess accumulated depreciation 3) Asset control 4) Unrecorded assets 5) Lack of valuable resources and expertise On average, companies are overpaying taxes on approximately 12% of fixed assets recorded on their ledgers. The savings that can be obtained from hiring a company to conduct a fixed assets inventory can more than justify the savings obtained on an annual basis. |
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| Fun Fact Did you know that Memorial Day was originally called Decoration Day. To honor the deceased, soldiers would decorate graves of their fallen comrades with flowers, flags and wreaths. Hence Decoration Day. Although Memorial Day became its official title in the 1880s, the holiday wouldn’t legally become Memorial Day until 1967. |
| “Helping to assess, inform, and empower healthcare providers with their equipment management needs.“ For more information on MRG’s services, visit our website or contact us at (440) 289-6490 www.go2mrg.com. Manage Resource Group, Inc. |
