When is Equipment End of Life?

Not long ago, our team at MERC published a short video that said, “your equipment has an end of life: but it isn’t when it stops working.” There is so much in that, let’s dig in a little deeper…

Let’s look at a home appliance for an example. Maybe an old toaster that works and has been in your home for 25 years. There is value in that toaster because it continues to work and toast your bread in the morning. You have relied upon it and it has kept working when many of your friend’s fancier units have failed. The problem is, if you decided it was time for an upgrade because you wanted the new 4 slice, elite super-edition, what value does your “old reliable” have?

Your toaster works, but it likely doesn’t look new. It probably doesn’t meet current standards whether that be for electrical usage, build specs, safety, and other typical standard features. You also have to look at the cost to move on from that toaster. Do you invest your time in a garage sale to get $1 for it? Do you invest time to donate it? Can you post it or let your circle of friends know it is available? Is the trash the right place to put it? Do you find a corner in your attic to store it? In the end, as we all know, time is money and getting rid of that old toaster is now costing you more than it is worth.

The same thing can happen at a much larger scale with medical equipment assets. The “let’s run this thing into the ground” approach is not leaving a facility in a financially advantageous position. Equipment is often reaching the point, like the toaster, where it works, it is doing it’s job, but time and value are passing it by. Upkeep costs, lack of repair or service support, and what we refer to as “market value” have reached a position that puts equipment at financial end of life before it stops working.

Thinking strategically to avoid these situations is imperative. Healthcare providers must run very lean operations. Having a forward-thinking approach with your “old toaster” is the best way to make sure you are not only saving money, but spending it wisely.