What is Your X?
EquipX’s myX Program is a comprehensive financial analysis of the health system’s most valuable pieces of capital equipment.
The program analyzes market value, book value, profitability, and utilization of equipment, among other attributes, and runs scenarios to determine your “X,” or the amount of money that can be returned back to the organization through changes in equipment management. The myX Program is the first step in realizing the power of the full EquipX platform.
myX Program Deliverables
The myX Program often includes equipment such as MRI, CT, PET, Cath-Lab, Interventional Radiology, Radiation Oncology, Surgical Robotics, Cyberknife, Total Laboratory Automation (TLA), etc.
- The total operating cost of the equipment and the portfolio (top 50), with respect to direct assignments of labor, maintenance, parts, depreciation, supplies, overhead and actual performance.
- Profitability and break-even analysis of the portfolio (top 50) based on Medicare and the hospital payor mix.
- Equipment utilization analysis, filtered by individual piece/modality, department/business unit, and/or hospital level. Evaluation of maximum and normalized capacity based on the current hours of operation and labor staff assigned at the equipment level.
- Appraised actual market value of each individual piece of equipment, as well as the comparison between actual market value and the book value.
- Internal enterprise benchmarking and comparison analysis, filtered by individual piece/modality, department/business unit, and/or hospital level with respect to cost and reimbursement.
- The utilization threshold at the equipment level, identifying underutilized equipment in the portfolio and opportunities for optimization.
- Identification of the optimal point in time to sell each piece of equipment.
- Simulation of outcomes of potential changes in procedure / test volume for each individual equipment as well as financial contributions such as revenue, cost and profitability.
- Simulation and justification of any investment for equipment such as upgrades, refurbishment and recertification.
- Simulation of financial outcomes such as ROI, Payback Period and IRR, and the cost justification of new capital equipment expenditures.
- Financial analysis and comparison between procurement alternatives such as lease vs buy for the new equipment.
- Identification and analysis of business opportunities for insourcing and outsourcing.
“MHS’s X is millions. EquipX allows us to gain never-before-seen insight into our capital equipment portfolio, yielding significant opportunities to generate untapped funds to invest in our health system’s most critical priorities.”
Matthew Muhart, EVP and CAO, Memorial Healthcare System