Valuations For Surplus Medical Equipment

HELPING YOU MAXIMISE VALUE

Know what your surplus equipment is worth

Our people are here to help you maximise value and plan equipment life-cycles. Join healthcare organisations across the UK and Europe who trust in our unrivalled experience and knowledge of current market values, backed up by our database of medical equipment prices.

Hilditch Group understands the importance of accuracy when providing valuations for used medical equipment. Accurate valuations benefit healthcare providers by empowering healthcare asset management, and the healthcare industry as a whole, by helping to create a reliable and fair second-hand medical equipment market.

YOUR GUIDE

The valuations we offer

• Price comparisons are available on almost any type of used medical equipment.
• Business transfer is especially useful for healthcare providers outsourcing or taking on external services. We can determine transfer value for the assets of a department or an entire hospital.
• Residual values are essential for forecasting future income and values on equipment. Get a clear idea of what your equipment is worth in 5, 7 or 10 years. Hospitals draw on this service to manage lease equipment or to plan replacement budgets.
• Current market valuation provides commercial valuations of equipment for various market scenarios.

Factors affecting medical equipment value

Several factors affect the value of second-hand medical equipment:

Age and condition
Physical condition, operational functionality and maintenance history are all considered when assessing a machine’s value. An older machine that has been well maintained and regularly serviced may attract a higher value than a newer machine in a poorer condition without regular servicing.

Market demand
It is important to look at the factors that affect the market, such as demand for equipment, the number of units, or similar units already on the market, seasonality and the equipment’s versatility (i.e. its usability in different practices, industries and countries).

Technological advancements
Second-hand medical equipment value may depreciate when newer models are released, and the older model is no longer considered cutting edge. However, this is not always the case – if a newer device is not well received the value of the older model may not depreciate as quickly. The below case study on endoscopes demonstrates this point.

Usage
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.

Regulatory compliance
As not all devices are licenced for use in all jurisdictions, it is important to review a machine’s compliance with local and international standards. For example, devices not registered with the US Food and Drug Administration cannot be sold or used in the US, and territories that closely align with the US regulations.

Valuation methods

We use our extensive database of previous sales, Hilditch Connect , to refer to recent comparative sales. Hilditch Connect contains over 30 years of sales data meaning we have data on a significant variety of medical equipment. 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.

Another technique we use is to look at the recommended retail price of a device and subtract depreciated value.

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 allowing for accuracy in valuations.

Maximising the value of surplus medical equipment

Proper maintenance and record keeping
Proper maintenance and record keeping are really important. 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.

Timing
Timing is also important when reselling medical equipment. The first sellers to enter the market with newer models of equipment will often attract higher sales prices than those that enter the market later with the same model. For example, the first NHS Trust to replace a model of anaesthetic machines will likely attract the highest resale price.

CASE STUDIES

Case study – the value of used endoscopes

The Olympus 260 Series endoscope, introduced in 2002, was one of the first high-definition endoscope systems. The equipment was well received and sold consistently. Even as they entered the second-hand medical equipment market, they continued to hold their value.

Ten years later, Olympus introduced the 290 Series endoscope, with a wider field of view and updated video processor. The expectation was that the value of the 260 Series equipment would decline as devices from the newer generation entered the second-hand market. However, unexpectedly, the value of the 290 Series equipment depreciated far more quickly than the 260 Series equipment.

Interestingly, 260 Series equipment is now considered comparable, if not more desirable, than 290 Series equipment. Between 2020 and 2024, 290 Series endoscopes reduced in resale value by approximately 90%. Whereas between 2014 and 2024, 260 Series endoscopes reduced in resale value by 70%. The discrepancy in depreciation can be attributed to three main factors –

1. Due to design changes, 290 Series equipment is not considered as reliable as 260 Series equipment.
2. The servicing costs of 290 Series equipment is higher than 260 Series equipment.
3. There is a lack of backwards compatibility between equipment – you cannot use a 290 Series scope on a 260 Series processor.

This case study serves as a reminder not to make simple assumptions about age, series and value when valuing second-hand medical devices.

Key takeaways

Interested in receiving a valuation for second-hand or surplus medical equipment? We have expert sales teams across the UK and Europe who can help. Get in touch.