Important Considerations When Valuing Your Medical Equipment Systems For Financial Purposes.
Determining the Fair Market Value (FMV) of your medical equipment systems is not as simple as slapping on a price tag. There are many costs (or values) associated with converting a linear accelerator from simply a machine with parts to a device ready to treat cancer patients. Or, to remove, relocate and re-install an MRI machine or PET/CT system. Of course, many other factors impact the value of the equipment as well.
To better understand the value of medical equipment, we have broken down the following commonly used terms across the appraisal world.
Orderly Liquidation Value (OLV)
Also referred to as a “wholesale” value, OLV is the price which one can expect to receive when selling to a third party on an “as is, where is” basis.
Fair Market Value (FMV)
Also referred to as “retail” value, FMV is the price a buyer or end-user should expect to pay to have the machine relocated and installed at their clinic or hospital. This does not include costs associated with software relicensing, commissioning, and accessories required to operate the equipment.
In Place Value (IPV)
Also referred to as the “turn-key” or patient-ready value, IPV takes into account the values associated with the machine, such as costs of installation and commissioning, software licensing and registration, accessories, and even potential residual warranty coverage.
Get Your Equipment Appraised
With any medical equipment, there are a number of factors that impact its value in the secondary equipment market. Age of the equipment, configuration, physical condition, functionality, software versions, resale market demand, wear & tear, useful life of the machine, removal path, and geography all play a role in determining value.
ROS uses this information and leverages over 25 years of industry experience to help you understand the used equipment market. We perform research based on our extensive equipment database and can provide you with an accurate appraisal of the market value of your equipment. The ROS appraisal report includes the OLV, FMV, IPV, and any needed service or relocation costs.
Contact ROS if you would like an appraisal of your linear accelerator, MRI, PET/CT, or CT Scanner.
