We understand the importance of preserving value in your surplus medical equipment. Several factors affect the value of used medical equipment, including –
- Age and condition
- Market demand
- Manufacturer support
- Technological advancements
- Proper maintenance and record keeping
- Usage
- Timing of the sale
- Regulatory compliance
With careful planning and considerations, you can ensure your second-hand medical equipment retains maximum value for eventual resale.
Key factors affecting second-hand medical equipment value
Age and condition
When assessing the value of second-hand medical equipment, age is an important consideration, but not the sole determinant. Condition is an equally important factor – a machine’s physical condition, operational functionality and maintenance history are all considered when determining value. Older machines that have been well maintained and regularly serviced often attract higher values than newer machines in poor condition, without regular servicing.
To ensure your machine retains value, it is important to keep it in excellent physical condition with regular servicing and maintenance checks.
Market demand
Market demand is influenced by several factors, including –
- Demand for specific equipment
- Availability of the same, or similar units
- Timing
- Versatility of the equipment (i.e. its ability to be used in different types of practices, industries and countries)
- Healthcare industry trends
- Economic factors
Although market demand cannot be controlled, it can be predicted. With over thirty years of experience shaping the second-hand medical equipment market, we are uniquely positioned to accurately predict market trends, based on historical sales data, and use it to maximise the value of second-hand medical equipment.
Manufacturer support
Manufacturer support plays a crucial role in determining the lifespan and value of second-hand medical equipment. Manufacturer support affects –
- Spare part availability – ensuring that repairs and replacements can be carried out
- Technical support – such as servicing and maintenance to ensure the machine maintains operational functionality
- Regulatory compliance – manufacturer support is necessary to ensure the machine remains compliant with evolving regulations
- Software updates – the discontinuation of software updates make devices redundant or incompatible with other systems
Equipment with ongoing manufacturer support retains its value as it extends the lifespan of the device and indicates to buyers that it is a reliable long-term investment.
Technological advancements
While the value of second-hand medical equipment may depreciate when newer models are released, and the older model is no longer considered cutting edge, this is not always the case. If a newer device is not received well, the value of the older model may not depreciate as quickly.
An interesting example of this is a case study relating to endoscopes. The Olympus 260 Series endoscope, introduced in 2002, was well received, used consistently and retained its value as it started to enter the used medical equipment market. Ten years later, Olympus introduced the technologically advanced 290 Series endoscope with a wider field of view and an enhanced video processor. The expectation was that the value of the 260 Series endoscope would decline, however, unexpectedly, the value of the 290 Series equipment depreciated far more quickly than the 260 Series equipment. This can be attributed to three factors:
- Due to design changes, the 290 Series equipment is not as reliable as the 260 Series equipment.
- Servicing costs of the 290 Series equipment is higher.
- There is a lack of compatibility between equipment – practitioners cannot use a 290 Series scope on a 260 Series processor.
This case study shows that newer does not necessarily mean more valuable when it comes to second-hand medical equipment.
Proactive steps to take to ensure your equipment retains value
Proper maintenance and record keeping
Proper maintenance and record keeping are important for value retention. Equipment with records to show it has been properly maintained by the original equipment manufacturer, or a reputable third party, will usually attract a higher value.
Usage tracking
Most devices record their hours of usage. An older machine with relatively low usage may attract a higher value than a newer machine with higher usage.
Timing of the sale
It is important to consider timing when reselling medical equipment. The first sellers to enter the market with newer models of equipment will often attract higher sales prices than those entering the market later with the same model.
Seasonality is an additional factor to consider when timing your sale. For example, second-hand defibrillators often receive higher valuations in spring as local community medical providers are preparing for an increase in community events during the summer. Contrastingly, valuations of second-hand defibrillators tend to be lower in winter.
Regulatory compliance
Not all devices are licenced for use in all jurisdictions. It is important to review a machine’s compliance with local and international standards before selling as this will affect its value. For example, only devices registered with the US Food and Drug Administration can be sold or used in the US, and territories that closely align with the US regulations.
How do we help vendors maximise the value of their second-hand medical equipment?
We use our extensive database of previous sales, Hilditch Connect, to look at recent comparative sales. Hilditch Connect contains over 30 years of sales data meaning we have records from a significant variety of medical equipment sales. As well as being able to review comparable sales, we can also use this tool to recognise existing and emerging market trends to maximise the value of second-hand medical equipment.
Where necessary, we also utilise our in-house team of experienced medical engineers to assess second-hand medical equipment. This gives us an in-depth understanding of the equipment’s condition, maintenance history and usage and allows us to provide accurate valuations for our vendors.
Key takeaways
With careful planning and attention to detail you can ensure you have done everything in your control to retain the value of your second-hand medical equipment. By keeping detailed records, keeping your device well-serviced with software updates, and strategically timing your sale, you can maximise its resale value.
We’re well placed to guide you through the sale process, and help you achieve maximum value for your second-hand medical equipment. If you are interested in finding out more, or would like to arrange a professional valuation, get in touch with our team of experienced valuers.
