Whether you are the sole proprietor of your medical business or are part of a multi-million dollar hospital system, there are going to be times when medical equipment appraisals are an absolute necessity. It might even be a legal requirement, so when it comes to time to utilize an equipment appraiser, make sure they are certified. That’s what you get here at Capital Machinery and Equipment Appraisals, Inc.
The Most Common Reasons For Medical Equipment Appraisals
While the list below certainly isn’t completely comprehensive, we thought we’d take a look at some of the most common reasons that medical institutions seek out machinery values.
We don’t have to tell you that medical equipment is expensive. With MRI machines costing from hundreds of thousands of dollars up to three million dollars, it’s important to have insurance on them. But do you have the right amount of insurance when depreciation is considered?
If you have a piece of medical equipment that has too much insurance on it, you’re wasting money that can never be recouped. On the other hand, if a piece of equipment is underinsured and it’s lost in a fire or is damaged in some way, you won’t get the money to replace it.
We’re sure you want to take every advantage possible when it comes to taxes. What many people don’t know is that depreciation isn’t standard across all types of medical imaging equipment. A machine using revolutionary technology might see rapid depreciation as more advanced versions come out soon after. On the other hand, tried-and-true equipment that isn’t seeing much technological advancement might keep its value better.
Knowing the actual medical equipment value can tell you exactly what it will go for on the open market, allowing you to take the tax advantages your business is due.
Sale of Device
What is a particular piece of medical equipment worth? As we just discussed, you can’t always rely on a typical depreciation model. And blue book values fail to take many aspects into account, such as the month to month changes in value and the price in your area.
When you sell a particular piece of equipment, you need to know exactly what it’s worth. If you have someone offering you more than it’s worth, good for you! But if you get someone trying to lowball you and you don’t know any better because you failed to get a medical equipment appraisal, you’re just leaving money on the table.
Sale of Medical Establishment
As medical institutions consolidate, the need for medical equipment appraisals continued to rise. Suddenly it’s not just one MRI that’s changing hands, but dozens of MRIs and multiple types of very expensive medical imaging devices. Add the office equipment, examination tables, adjustable beds, and hundreds of other pieces of equipment and you can see why equipment valuation can be such a big deal.
Whether it’s two large medical facilities consolidating or a large hospital purchasing a small family practice office, all parties involved need to know what a fair price is and go from there. And if multiple partners are buying out a partner who is leaving, the leaving partner will definitely want to get everything they can from the practice.
Change In Corporate Status
Sometimes the need for medical equipment appraisal, as part of the valuation of the entire business, is necessary because of a change in how the business exists as a legal entity. For instance, if a company is changing from a C corp to an S corp, a valuation of all tangible assets is required.
Present Problems and Future Planning
When the ownership of a business is in question, such as during a divorce, it’s important to determine how much it’s worth so that both parties can begin honest negotiations. Another legal reason to get an evaluation of a medical practice’s worth is when writing wills and establishing trusts.
Summary and Desktop Appraisals
Now that you know about some of the most common reasons that hospitals and medical practices need medical equipment appraisals, it’s important to know that there are two options available: desktop appraisals and summary appraisals.
With desktop appraisal, all of the information on a piece of equipment is supplied by the client. The client will send the make, model, year of manufacture, etc. and the appraiser will send back an official determination of fair market value. This is all done remotely and is a very cost-effective way of handling certain appraisals.
During a summary appraisal, the appraiser is on-site and gathering all of the information regarding the equipment in person. A report is filled out and accurate market value is determined.
If your intention is to sell medical equipment, you might not know of the best way to sell it. After all, while there is a market for used medical equipment, it’s not always evident where you should sell it in order to get the best price.
After establishing a legally-respected market value, Capital Machinery and Equipment Appraisal can also use our brokerage services to help find you a seller. We have access to an extensive network of people and organizations and can help you sell your equipment for a fair price. Learn more about CMEA’s brokerage services here.
Contact CMEA To Get Started
If you require medical equipment appraisal for any reason, CMEA is ready to help you. Whether we’re on-site or remote, we can help you establish the fair market value for any piece of equipment you have, no matter how new, old, or rare. Contact us today to get the process started.