Solutions

Market value of capital equipment is often
30% or more than book value

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 reductions and significant returns to the organization. Today, health systems can’t see the capital trapped in their most valuable assets. Some of the common struggles include:

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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.

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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.

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True profitability of equipment is uncertain, with limited knowledge of revenue, real operating cost, and margin, over time.

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 financial managers
EquipX provides accurate scenarios to:

  • understand the true value of your equipment portfolio
  • gain a level playing field with vendors in negotiations
  • easily determine accurate cost accounting for equipment
  • optimize appropriate use of equipment across locations.

For clinical and service line leaders
EquipX provides objective data to:

  • provide financial justification for state-of-the-art technology
  • understand profit margin by equipment / procedure
  • receive financial / performance data for executive decisions
  • enhance collaboration across departments and throughout the health system
  • approach capital budgeting with accurate alternatives.
EquipX Solutions Diagram

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 equipment sales, improved utilization to increase revenue and profitability, and objective information for capital budgeting collaboration 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.

Revenue/Cost/Profit
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
EquipXuses 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.

Reallocate/Dispose
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. Furthermore, the EquipX Marketplace brings buyers and sellers together in a transparent platform to maximize the financial return for both parties.

Procurement Support
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.

Capital Budget
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

Find out how much hidden capital you have in your clinical equipment.

Learn More About the myX Program ››