Is your facility considering selling or replacing diagnostic imaging or radiation therapy equipment? You have several options. We have highlighted the “pros” and “cons” of each.
OPTION 1: SELL YOUR USED EQUIPMENT
Who doesn’t like ‘cash in hand’? By selling your equipment, you will have the benefit of knowing how much your used equipment is worth. Selling your equipment makes sense when you have time to seek out a buyer.
|PROS OF THE “SELLING” OPTION||CONS OF THE “SELLING” OPTION|
|✓ Receive the maximum cash value for the equipment.||✗ Requires inspection from the purchaser of the equipment.|
|✓ Cash payment provides value and flexibility. Use the funds in any area of your department.||✗ Requires gathering information and service history, taking photos, etc.|
|✓ Extends the life of equipment by placing it in areas where it is needed.||✗ Requires the equipment to be complete and usually in operational condition.|
|✓ Humanitarian value when equipment is used in developing areas of the world.||✗ The proceeds of the sale are often kept by the hospital’s general fund and not retained by the department.|
OPTION 2: CONSIGN YOUR USED EQUIPMENT
Some sellers choose to consign their equipment, which allows them time to find the “right” buyer when there is a time crunch that prevents the seller from getting a favorable price.
|PROS OF THE CONSIGMENT OPTION||CONS OF THE CONSIGNMENT OPTION|
|✓ Frees up space quickly. You can have your equipment removed without going through the longer sales process.||✗ Some equipment often loses value after it is de-installed.|
|✓ More time to market and sell often yields a higher price and more value recovered.||✗ There is no guarantee of whether it will sell at the price you want.|
|✓ Hiring a qualified company to work with will make the process seamless.||✗ Equipment ages and loses value the longer it is stored.|
OPTION 3: REMOVE AND DISPOSE OF YOUR USED EQUIPMENT
A removal and disposal is sometimes the only option to choose if your equipment has low or no value on the secondary equipment market.
|PROS OF THE DISPOSAL OPTION||CONS OF THE DISPOSAL OPTION|
|✓ Opens up space that can be used for other equipment, offices, storage, conference rooms, etc.||✗ Removal companies will charge a fee to professionally remove your old equipment.|
|✓ Eliminates liability and risk of older equipment sitting around.||✗ Can be dangerous and requires skilled professionals to remove safely.|
|✓ Often allows your building to be sold with fewer complications.||✗ There is a chance you will need the equipment at a later date.|
OPTION 4: “PART-OUT” YOUR USED EQUIPMENT
Cash payment for individual parts can often help offset or even completely cover the costs of removal and disposal of the old machine. Consider selling your entire machine, or break it out into it’s main parts.
|PROS OF THE “PART-OUT” OPTION||CONS OF THE “PART-OUT” OPTION|
|✓ Some value (vs. no value) can be recovered from the equipment by selling its parts first, before disposal.||✗ Equipment’s service life ends when machine is disassembled.|
|✓ Some parts may be used to support your older units and lower service and maintenance costs of those units.||✗ Removal and disposal services are still required to remove the rest of the equipment.|
|✓ Parts can often be used to reduce cost of removal and disposal.||✗ Parts-only machines tend to have little residual value.|
|✓ You may be helping medical facilities in developing countries with your used parts.|
OPTION 5: TRADE-IN YOUR USED EQUIPMENT
A trade-in, as the name implies is the replacement of an older piece of equipment with a newer, more technologically advanced, new or refurbished system.
|PROS OF THE TRADE-IN OPTION||CONS OF THE TRADE IN OPTION|
|✓ Reduce downtime by swapping out machines simultaneously. The old machine comes out immediately before the new one is installed.||✗ Value of older equipment may not be significant, so the trade-in allowance may be negligible.|
|✓ Upgrade to new technology, using the value of your old machine to cover some of the costs.||✗ Selling your older equipment on the secondary equipment market may provide more value than a vendor is willing to provide on trade-in.|
|✓ Reduce time by wrapping everything into one transaction with one party – eliminates the headache of dealing with several parties.||✗ Discounts from trade-in equipment are often overstated to make the new system quotation appear more attractive. Many of these discounts can be negotiated anyway.|
|✓ Allows budget dollars to be applied to the department’s equipment vs. the general hospital fund. Therefore, your department retains the trade-in value.|
OPTION 6: AUCTION YOUR USED EQUIPMENT
An auction is a great method to ensure maximum sales price of used equipment, assuming the auction is highly targeted to qualified buyers.
|PROS OF THE AUCTION OPTION||CONS OF THE AUCTION OPTION|
|✓ Greater exposure to a larger audience of buyers. Increased competition can result in a higher price.||✗ There can be time constraints. The auction process is limited if buyers require more time to gain approvals and secure financing.|
|✓ The sales process is completely transparent to the seller, so you know who is offering what for your equipment.||✗ Opens the buying to non-professionals, which can pose great risks when removing equipment.|
|✓ Auctions are good for large volumes of sales, or sales in large lots, especially for lower priced equipment.||✗ Auctions are generally not very flexible and may not allow for equipment to be inspected at the appropriate time(s).|
For assistance with the removal or replacement of your used medical equipment, Michael Teague, Ryan Schock and their teams, are here to help. The R.O.S. team can assist and support you no matter which option you choose. If you are ready to find out how much your used equipment is worth, we can also provide you with a fair market valuation.
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