Fixed Assets Management In Hospitals

Fixed Assets Management in Hospitals

INTRODUCTION

Indian Health Care Industry is rising in gigantic pace. It is expected to be $280 billion dollars by 2020 at an annual growth rate of (CAGR) 22.9%.

Hospitals are striving hard to meet this great demand. They are bound to provide quality services at a minimal price.

Private hospitals have emerged as a vibrant force in India's healthcare industry, leading in both national and international repute. They have accounted for almost 74 percent of the country’s total healthcare expenditure.

With the dense competition in there, Hospitals are examining ways to reduce investments, but not at the cost of poor service.

Financial analyst and biomedical teams are developing reports to understand

Consider the shutdown of an operation theater. There are many pieces of equipment necessary to keep an OT functioning at peak efficiency. Circumstances like chiller malfunction, power drop or failure of generator, delay in supply of medical gasses have severe ramifications for hospitals. These damages pull down the credibility and financial stability of hospitals.

There are many instances where hospital staff faces the embarrassment of not finding required assets. It leads to the situation where staff raises a request for purchase of new equipment and assets. Improper asset management damages financial structure of the hospitals –

• Paying insurance premiums to Ghost assets – When an asset of high cost is disposed and if it is not recorded properly, and then Hospitals pay to insure premiums to these assets

• Poor recording of assets also affects the reputation of hospitals – When hospital employees fail to remove depreciated equipment from the books after it has been disposed of, the hospital appears to be older on paper than it really is. This can be problematic for hospital executives looking to refinance existing debt or raising new capital for expansion

• Unrecorded Assets – Hospitals sometimes have equipment that isn't on the books, which is a cause for concern when the hospital is

Physical location & assignee details of assets should be recorded

5. Condition of Aircon, Respiratory systems should be captured

6. Forecast model to estimate the disposal period of assets

7. Forecasting the level of gasses left and making self-prepared

8. Tracking the assets moved from one location to another

Hospital managements are on crossroads and are not in a position to make a decision. Managing assets are not their top priority. Providing quality services and proper treatment is their top priority. They also face few other challenges –

 Lack of standard body to manage assets

 Recruiting new employees to manage assets

As the count of hospitals is increasing day by day, the pressure on them is mounting. With such stiff competition, hospital managements are hunting for an effective solution that can reduce expenditure and increase the productivity of fixed assets.

Fixed asset management system

It is an accounting practice that automates all the activities related to asset maintenance starting with asset tracking, managing & complying assets as per rules. The primary purpose is to have effective financial accounting, preventive maintenance and theft deterrence.

It deals with –

 Ideal Procurement

 Reporting

 Branch wise accounting

 Regular