EquipX maximizes the profitability of expensive clinical equipment assets.
EquipX solutions help health systems capture a full, accurate accounting of the value, operating cost, profitability and utilization of capital equipment – leading to capital cost savings and significant returns to the organization. Today, health systems face common struggles:
True profitability of equipment is uncertain, with limited knowledge of revenue, real operating cost, and margin, over time.
Equipment utilization across multiple locations is not optimized. In some locations, equipment sits idle, while at other locations, overwhelming patient demand drives inefficient use of staffing resources.
When equipment is replaced, used equipment is typically traded in to the vendor at a fraction of its market value or sold at auction, resulting in pennies on the dollar.
What We Do
EquipX is a comprehensive solution to manage a health system’s most valuable capital equipment assets, giving them accurate information to get the highest return from their investments.
Aggregating data across the organization, EquipX produces a “P&L” that shows revenue, real operating cost, and profitability – by equipment, procedure, group, department, and system – giving you full visibility, at your fingertips, to release your hidden capital. Using unique algorithms and analytics platform, EquipX determines the market value of your full health system equipment portfolio, and allows users to drill down to view the market value of each individual piece of equipment. Market value versus book value can reveal real opportunities to capture new sources of funding for the health system’s most pressing needs.
FOR THE EXECUTIVE TEAM
- Improve profitability and efficiency of the health system
- Make short- and long-term strategic decisions for capital planning and investments
- Enhance collaboration across departments and throughout the health system
- Receive financial and performance data for executive decision making
FOR FINANCIAL EXECUTIVES
- Create a profit and loss (P&L) view for each current and future piece of clinical equipment
- Approach capital budgeting with accurate alternatives
- Understand the true value of your equipment portfolio
- Easily determine accurate cost accounting for equipment
FOR CLINICAL/SERVICE LINE LEADERS
- Optimize appropriate use of equipment across locations
- Provide detailed business case justification to acquire state-of-the-art technology
- See profit margin by equipment and by procedure
FOR CAPITAL EQUIPMENT/BIOMED AND SUPPLY CHAIN PROFESSIONALS
- Gain a level playing field with vendors in negotiations
- Determine equipment value based on market value
- Make informed purchasing decisions
- Understand equipment needs based on financial and operational intelligence
The EquipX analytics engine generates optimization scenarios, revealing how to best utilize, replace, and procure capital equipment.
The result: additional capital returned to the health system through improved utilization to increase revenue and profitability, and objective information for capital budgeting collaboration, equipment sales, and vendor negotiations.
EquipX Platform Solution Areas
Utilization Across System
EquipX provides financial and clinical leaders with a system-wide view of how and when each piece of equipment is used, the revenue it generates, the cost related to its operation and maintenance, and its true market value. This level of insight allows leaders to make equipment allocation decisions that return dramatic financial results to the health system.
EquipX is the only software platform that provides instant visibility into the revenue, true operating cost, and profitability of each piece of capital equipment. Reporting and analytics native to the EquipX platform allows the health system to evaluate performance and fully understand their areas of opportunity to improve margin at the equipment, department, and procedure levels.
Market Value vs Book Value
EquipX uses proprietary algorithms to estimate market value based on the characteristics of the equipment and market data. EquipX is the only source available today that provides accurate market value data alongside the existing book value of equipment. With market value typically 30% or more above book value, the potential influx of capital from equipment sales vs continued operating costs can be dramatic. EquipX provides the health system with the optimal point of sale based on depreciated value, market value, and continued operating cost and revenue.
The EquipX platform allows a health system to easily appraise the cash value of their capital equipment. Now the health system can realize higher return than with traditional disposition or trade-in against new equipment. EquipX simulation functions allow the health system to run various scenarios to understand the best financial options for reallocation of equipment resources across the system or sale at various points in the depreciation schedule.
With objective market valuation of equipment, EquipX offers leverage during the procurement process. In addition, by understanding the ROI of new equipment and the expected sale price of current equipment, health systems are at an advantage in vendor negotiation for the first time.
The EquipX platform provides complete and accurate financial and performance data for capital equipment, arming leaders and clinicians with the information they need for each phase of the capital budgeting process. In addition, EquipX’s powerful simulation capabilities reveal the impact of different scenarios on the capital budget, such as:
- the effect of reallocating equipment to different locations
- selling depreciated equipment at market value
- maintaining current equipment beyond its depreciation schedule