the new approach-alcmp- assessment-options 6-11-15
TRANSCRIPT
THE NEW APPROACH
Asset Life Cycle Management
Methodology - Assessment - Options
THE NEW APPROACH
An innovative and cutting edge method to managing IT and Medical
Assets drawing the most value from them. The method allows you to
consolidate the entire equipment selection, procurement, tracking,
funding, refresh, deployment and disposal process into a single
centralized program while gaining efficiencies, adding nimbleness, and
reducing the cost of maintaining competitive service delivery tools and
normalizing cash flows into the future
THE NEW APPROACH
CURRENT TECHNOLOGY
CENTRALIZED MANAGEMENT
COMPLIANT
SECURE
NORMALIZED COST
A S S E T A C Q U I S I T I O N
Asset Lifecycle Management Program
A C C O U N T I N G &
M A N A G E M E N T
Infrastructure as a Utility
Consumption Modeling
Y O U R F U T U R E R E A L I T Y
State of the Art Hospital
✓
$
WHAT IS ASSET L IFECYCLE MANAGEMENT?
Use cost-effective tools such
as leasing to help deliver
lifecycle management while
reducing your total cost of
ownership
Process-driven strategy where
technology assets are centrally
managed and refreshed at
specified intervals
Build a strategic plan to
specify the appropriate
timelines for specific
equipment types: $
Tablets & Smartphones
(18 months)
Workstations (3 years)
Network (4-5 years)
Ability to analyze assets to
nimbly shift technology
direction from acquisition to
disposition
WHY ASSET LIFECYCLE MANAGEMENT?
Identify and implement
correct funding model for
each equipment type
Use leasing as tool to
normalize cash-flow needed
to manage asset and
incorporate consistent
refresh path
Comprehensively manage
technology assets to reduce
total cost of use and keep
them current
Retain flexibility to migrate in
and out of technology
according to service line
competitiveness, revenue,
profitability and new
opportunities with minimal
cost
Build a strategic plan to
specify the appropriate use
timelines for specific
equipment types
Centrally manage total cost
of assets by having
consolidated view of leases,
refresh program, TCO,
refresh terms and
maintenance costs
$
THE NEW APPROACH
CURRENT TECHNOLOGY
CENTRALIZED MANAGEMENT
COMPLIANT
SECURE
NORMALIZED COST
A S S E T A C Q U I S I T I O N
Asset Lifecycle Management Program
A C C O U N T I N G &
M A N A G E M E N T
Infrastructure as a Utility
Consumption Modeling
Y O U R F U T U R E R E A L I T Y
State of the Art Hospital
✓
$
INFRASTRUCTURE AS A UTIL ITY (hardware, software & services)
The method of structuring ALL infrastructure as a utility with a set
(lowest possible) cost that provisions computing resources to
support any business strategy
Assess enterprise wide infrastructure requirements to operate all
business objectives, and to deploy new objectives, during a specific
period of time
Convert ALL infrastructure as a utility cost and as operational
expenses as much as possible. This allows for a predictable
normalized budget line item for all infrastructure
CONSUMPTION MODELING
This is a financial and management method that defines a price per unit of infrastructure to be charged per unit used by a service line,
department, business unit, affiliate or service client.
Ability to provision infrastructure resources and only charge for exact units consumed
Ability to compare cost of company-issued services vs. services available in the public market
Consumption modeling includes cost of technology refreshment and disposal
Introductory Asset Assessment
Use fixed assets list obtained from XYZ Health System to determine
eligible assets - estimate matching useful life to refresh cycle - and
quantify potential savings.
Methodology
1. Select all assets up to 5 years in service
2. Code each line item with a corresponding Equipment Category Code
3. Run model to calculate exact age of equipment and group assets by
Age, useful life and determine corresponding term of refresh cycle
4. Assign appropriate lease factor to output above and calculate Present
Value of stream of payment
5. Determine potential cash savings from Current Book Value and
Present Value.
Asset Assessment Findings Summary
Category Code Equipment CategoriesEquipment
AgeUseful Life Book Value PMT PV Total Savings
100 Rehab & Athletic 1 year 10 Years $155,643.64 $3,197.11 $140,730.93 $14,912.71
150-180-250-
255-270-271-
272-273
IT (Audio visual, communication,
business machines, photocopiers, data
processing, computers, monitors &
printers)
1-5 years 3-10 years $9,016,655.43 $218,470.38 $8,194,452.96 $822,202.47
300 Machinery, Tools, HVAC 1-3 years 10-20 years $208,971.79 $4,197.00 $182,620.22 $26,351.57
400 Appliances, Food Services 1-5 years 5-10 years $470,439.49 $8,553.01 $422,900.10 $47,539.39
470 Law Enforcement Equipment 1-4 years 5-10 years $950,464.45 $18,699.97 $829,207.00 $121,257.45
500 Laboratory 2-5 years 7-10 years $1,323,853.91 $25,103.25 $1,209,944.53 $113,909.38
511Endoscopy, Surgery, Monitoring,
Diagnostic & Ultrasound1-5 Years 3-10 years $14,273,718.71 $296,211.73 $12,430,585.87 $1,843,132.84
522 Radiology & Imaging 1-4 years 3-7 years $3,029,747.96 $70,847.01 $2,448,482.51 $581,265.45
600 Furniture & Carts 1-5 years 10-20 years $5,795,526.07 $99,138.83 $4,997,656.73 $797,869.34
$35,225,021.45 $744,418.29 $30,856,580.85 $4,368,440.60
Conversion of Program Assets into Cash
Injection
Monetize IT & Biomed Assets:
Lease back suitable IT & Biomed assets at current book value and
convert it into a cash injection to the organization
Structure the sale lease-back into operating or capital structure
Convert leased equipment into Asset Life Cycle Management Program
ASSET L IFE CYCLE MANAGEMENT PROGRAM
OVERVIEW
Introductory Asset Assessment
Categorize assets by use and by useful life - Can conduct Formal Detailed
Assessment -paid
Develop Funding Structures based on real asset life, use, upgrade path, vendor end
of life & lowest Total Cost of Use. Funding Structures : Operating, Capital,
Refresh, Season payments, End of Term Option
Selectively do Lease v Buy Analysis and Total Cost of Ownership v. Total Lease
Cost
Design Process Workflow: Asset Acquisition, Vendor management, Lease
documentation, Asset tracking, Asset removal, installation, wiping and disposal,
centralize program management, customized reporting
Determine Sources of Funding: Meridian Bank Partners, XYZ Health Current
Bank Partners, Diversify Funding Sources
Review Master Lease Agreement and documents
ASSET L IFE CYCLE MANAGEMENT PROGRAM
OVERVIEW WITH IT FOCUS
Evaluate Opportunities to reduce cost of IT Solutions, hardware, software and
services
Identify areas of limited IT resources to implement new projects & explore lower
cost solutions to meet those deficiencies
Available extensive IT departmental and technology assessments to measure p
erformance, efficiency, appropriate technologies and optimal costing
Implementation of Consumption Modeling
Tools: Asset Management & Asset Tracking Portal (MCAP) - Software
Inventory Management - Quarterly Software Utilization Reporting -
Automated Software Patching - Lease v Buy Decision Support -
Maintenance Cost Analysis – Biomed Utilization Reporting – Biomed Roadmap
MERIDIAN HEALTHCARE
IT Assessments
IT Infrastructure Planning & Roadmap
Privacy, Security and Compliance
Cloud, Managed Services & Mobility
UC, Collaboration & Telemedicine
Business Continuity and Disaster Recovery
Technology to Business Effectiveness Analysis
Pre-Owned Medical & IT Equipment Inventory
Maintenance & Support
Asset Management & Tracking
OVER 130 HEALTHCARE CLIENTS NATIONALLY
Client’s gain access to a wide range of solutions and services through one
point of Contact
BENEFITS
A S S E T L I F E C Y C L E M A N A G E M E N T C O U P L E D W I T H
L E A S I N G A N D C O N S U M P T I O N M O D E L I N G
Grow capacity and increase redundancy
Normalize cash flow
Build a program for systematic replacement of technology
Predictable per unit costs for users for budgeting purposes
Reallocate capital to other areas
GETTING STARTED
OPTIONS:
• MONETIZE CURRENT ASSETS AND IMPLEMENT LIFE CYCLE
MANAGEMENT PROGRAM FOR ALL NEW QUALIFIED
• IMPLEMENT LIFE CYCLE MANAGEMENT PROGRAM GOING
FORWARD WITH NEW QUALIFIED ASSETS
• APPLY LIFE CYCLE MANAGEMENT CHARACTERISTICS ON A
LEASE TRANSACTIONAL BASIS
Thank you! Victor M. Muñoz
954-874-1662