Jim McCoy, president of clinical asset management at TRIMEDX, recently contributed an article to 24x7 Magazine about how health systems can maximize the value of their medical devices from purchase to disposition. The full article, as it appeared Nov. 15, 2024, is below.
Healthcare systems invest millions of dollars in medical devices to provide quality care to patients, but many struggle to extract the full value of these assets over their lifetimes. On average, clinical assets account for 25% of health system capital expenses and up to 1.75% of all operating expenses. Inefficiently managing this significant investment throughout the medical device lifecycle leads health systems to leave substantial value on the table. By strategically managing the entire clinical asset lifecycle, health systems can maximize savings.
Healthcare organizations should implement data-driven strategies to optimize the utilization, performance, and longevity of their medical devices. Ultimately, this will improve patient outcomes while reducing overall costs. Integrated technology and data must be at the center of this strategic clinical asset lifecycle management.
Proactive planning and data-driven acquisition decisions
The process begins with capital acquisition. Many health systems lack visibility into their inventory—often not realizing what equipment they have, where devices are located, or how often they are used. This causes clinicians to respond reactively and order new devices to address an immediate need instead of making proactive, data-driven decisions about what devices to acquire.
Establishing an accurate account of a hospital’s inventory is essential to maximizing its value. Once a health system gains this visibility, it can begin to integrate data into the capital acquisition process. For example, data on existing devices’ usage rates can reveal if additional devices are truly needed—and whether they should be rented or purchased.
Health systems lack real-time data on device usage and availability. TRIMEDX has found that without a program in place to manage clinical assets; the average device utilization rate is between 40-50%. If health systems know how often devices are being used, they can avoid over-purchasing and reallocate existing resources instead. If one hospital within a system needs IV pumps and another location has a surplus, a centralized data source allows decision-makers to simply redirect excess resources where they are needed most, instead of making unnecessary purchases or rentals. Technology can empower executives to confidently make these decisions. Real-time location systems (RTLS) can help a health system track devices and see how often they are being used. Meanwhile, a medical device security platform can monitor when a device is on, connected to the network, and being used. Integrating RTLS and MDSP data insights into one record provides a holistic picture of overall device utilization.
Health systems should also consider the lifespan of every asset they own. Is it nearing the end of the lifespan designated by the manufacturer? Are there limited parts available for it? What’s the service history? How often does it fail? Health systems need to be able to answer these questions about their devices and equipment, but collecting and managing this data can be overwhelming for clinical engineering teams who are often already short-staffed and overworked. Health systems should work with a partner that has the people, processes, and technology to gather and utilize this data effectively.
By truly understanding clinical demand, historical utilization, and asset lifespans, healthcare systems can make more informed purchases.
Extending device lifespan through excellent maintenance
Proper maintenance is a powerful tool to extend the lifespan and maximize the value of medical devices. Through regular, data-informed upkeep, health systems can prevent device failures and improve reliability.
Health systems should take advantage of predictive work systems and AI-powered technologies that help clinical engineering teams stay on top of preventative maintenance and get ahead of any device problems. If health systems properly care for their devices, they can sometimes keep devices safe and functional beyond the OEM-designated end-of-life. Cybersecurity maintenance is often just as important as maintaining the physical equipment. As more devices become network-connected, it’s critical for clinical engineering teams to work closely with cybersecurity teams to monitor operating system (OS) safety and supportability.
An additional way to prolong devices’ lifespans is to partner with an organization that has expertise in servicing devices and strong relationships with OEM-certified third-party providers for parts. Sometimes, after an OEM discontinues service and stops making parts for a device, third parties will still have the needed parts in stock. This allows clinical engineering teams to support devices much longer, thereby deferring capital expenditure on new equipment. This saves health systems money and reduces environmental waste by maximizing each device’s lifespan.
Dispositioning: Timing is everything
Disposition is the final, critical phase of a device’s lifespan where healthcare systems can lose potential value. Many hospitals store old and unused devices or equipment in back rooms, only to find and discard them years later with no residual value. With proper inventory management and up-to-date data, health systems can identify the optimal time to sell, trade-in, or donate devices to ensure they have as much value as possible. If hospitals wait too long to sell or trade a device, it may be obsolete and worth very little. If hospitals sell too soon, they could be getting rid of a useful, revenue-driving device. Health systems also must consider the broader market when thinking about disposing of assets to avoid selling during a time of market saturation. Working with a partner with access to industry utilization data is extremely helpful in determining the right time to let go of clinical assets.
Some health systems may opt to destroy unneeded devices to avoid the risk of electronic patient health information (ePHI) being exposed after the sale or trade-in. The right partner will be able to ensure all ePHI is safely removed from the device, allowing the health system to recover as much value as possible.
By incorporating dispositioning into the lifecycle management process, hospitals can reduce waste and recoup value.
Maximizing value throughout the medical device lifecycle requires a strategic approach that integrates proactive planning, real-time utilization tracking, predictive maintenance, and informed dispositioning. By adopting data-driven lifecycle management and working with a clinical asset management partner, health systems can ensure they enhance the utility, reliability, and lifespan of each device. In addition to financial savings, this approach will foster a more sustainable and resilient healthcare environment.