Selling Medical Equipment at Auction

Transcription

1 Selling Medical Equipment at Auction An Introduction A NPMA Webinar Presented by: Greg Shattuck January 28, 2016

2 The Auction Process

3 What s Sold at Auctions? Anything & Everything including Medical Equipment! Real estate Automobiles Commercial and Industrial Equipment Fine art Livestock Surplus property & idle assets Intangibles intellectual property, judgments, debt, royalty interests Communication bandwidth FCC Benefit Auctions $268.5 BILLION sold at auction in 2008.

4 Why are Auctioneers Used? Provides essential function in commerce Determines market value through competitive bidding Mandated by federal, state, or local law Offers transparent, arms-length process Experts at accelerated marketing/ability to sell large quantities quickly Provide a full service Auctioneer motivated to sell for the maximum value Establishes market value for specialized/arcane equipment

5 Selecting an Auctioneer National Auctioneers Association State auctioneers associations Word of mouth/referrals Existing services Group Purchasing Organization (GPO) Term contracts/agreements Licensure, insurance, bonding Specialties Mailing lists

6 Place & Time of Sale Place Whose facility? Installed equipment? Time Commercial/industrial = weekdays Antiques/household items = weekends

7 Auction Formats Live onsite Live simulcast (webcast) Online only Dynamic closing Hands off? Others Sealed bid Private sales

8 Fees & Contract Commission-based with percentage of gross sale Flat rate is not always best Varied on estimated value and level of service Buyer s Premium Clearly list responsibilities, disclosures, additional expenses Minimum/reserve bids Complete inventory buyout Financial guarantee offer

9 Auctioneer s Responsibilities Fiduciary relationship with seller Does not advocate for the bidder UCC/lien searches Auction set-up Correct grouping and configurations that add value What is a lot? Second set of eyes for PHI, contaminated, prohibited, or restricted materials Marketing for a commercially reasonable sale Additional services Seller may incur additional charges

10 Seller s Responsibilities Clearly identify items for sale Provide good titles to equipment Secure items in absence of auctioneer

11 Auction Preparation Provide all auction setup Inventory description and photographs Clearly labeled lot tags Designate specific date and time for inspection Auction staff or seller Post inventory to online auction (or conduct live onsite auction) Advertise items for duration of the auction

12 Auction Time Permit prospective bidders ability to inspect items Flexible online auction (7 14 days) Sell items as is, where is with no warranties/guarantees Qualify buyers of medical devices & other restricted equipment Unsold/unsalable items

13 Post Auction Accounting and processes are so important! Accept payments at the end of auction Differ from auctioneer to auctioneer Cash, check (company or cashier s), credit cards, wire transfer Collect applicable state and local sales tax Clean up warehouse Accounting/sale reports List of bidders name, address, telephone, address List of all items sold price, buyer name, additional information Sale report gross sales, commission, reimbursable expenses Remit proceeds by EBT/cashier s check varies Reconcile inventory tag numbers with auction lot numbers

14 Medical & Laboratory Auctions

15 New/Expired Disposable Supplies Most medical materials are imprinted with an expiration date by the manufacturer, after which time safety, sterility, efficacy, etc. is not guaranteed. Examples include new, unused, single use disposable medical devices, such as catheters, IV sets, syringes, gloves, drapes, masks, fluids. Overstocks are a by-product of purchasing oversight, discontinued procedures, threat of pandemic outbreaks. Medical supplies with unexpired dates are legal to sell/donate/export. Per FDA, expired medical supplies cannot be sold, donated, or exported for human or any live vertebrate use. May be used for education and research use only. Out of date pharmaceuticals, drugs, or biological products are unable to be sold, donated, or exported.

16 Precursor Laboratory Apparatus Precursor Chemical Laboratory Apparatus (PCLA) can be used in the manufacture of illegal drugs including methamphetamines. Includes specific types of laboratory glassware such as distillation columns and boiling flasks, and mechanical equipment such as heating mantles and adjustable power controllers. Not all laboratory equipment is considered PCLA. The sale and purchase of precursor chemical laboratory apparatus may be regulated by your state and may require special licensure, storage, and record keeping. In Texas the Department of Public Safety, Narcotics Division, regulates the sale of precursor chemical laboratory apparatus and can provide the rules and statutes governing purchase and sale. Your own facility may have internal regulations regarding PCLA that are more stringent than existing state laws and will take priority.

17 Hospital Liquidations The liquidation of a closed hospital is a complex process typically part of a the overall decommissioning plan for the facility. Much more than medical equipment in a hospital. Dietary, physical plant, IT, office furniture, housekeeping and more. Auctioneer must give careful consideration to the logistics and scheduling of any hospital liquidation, from auction preparation to equipment removal. The auctioneer will work closely throughout the project with inventory management, facilities management, engineering, environmental health and safety, and security. Auctioneer must supervise the equipment removal process closely to ensure that all work conforms to safety requirements and that equipment flows efficiently from the hospital.

18 Hospital Liquidations (2) Auctioneer should prioritize the sale of the equipment based on its value. Auctioneer may choose to negotiate with a single or multiple vendors to sell entire categories of property prior to an auction, e.g. office furniture. Auctioneer may need to stagger the sale of items in the hospital to prevent a logjam at the elevators/loading docks and to ensure a smooth flow. Must be mindful of the project time frame in order to accomplish liquidation on schedule.

19 Future Topics Selling distressed medical devices Types and classes of medical devices More about hospital liquidations Donating medical equipment and supplies Medical equipment appraisals Computer equipment at auction/data/hipaa/phi Non-saleable equipment options Your suggestions are welcome!

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21 About the Presenter Greg Shattuck has worked in the auctioneering industry for 35 years, starting with a firm that was founded in 1918 in San Antonio, Texas. In 1987 Shattuck opened Shattuck & Associates Auctioneers as a commercial and industrial equipment auctioneering firm with a focus on healthcare equipment auctions. Since then Shattuck has conducted liquidations of complete hospitals, surgery centers, laboratories, physicians and dental practices, as well as contract surplus property auctions for major universities, medical schools and healthcare systems in six states. In addition, Shattuck also conducts collateral foreclosure auctions for banks and other lenders, is an approved auctioneer with the United States Bankruptcy Court and is a court appointed receiver by the United States Department of Justice. Greg Shattuck also conducts personal property appraisals for a wide array of machinery and equipment, including healthcare related assets. Greg completed 127 hours of principles of valuation classes with the American Society of Appraisers in the area of machinery and technical specialties, and has a pending membership with the Association of Machinery and Equipment Appraisers. Shattuck LLC s primary office and warehouse is located in Austin, Texas with additional personnel and warehouses in Houston and Ft. Worth, Texas. Shattuck is a member of the National Auctioneer's Association, the Texas Auctioneers Association, the Machinery Dealers National Association, the National Association of Bankruptcy Trustees and is a pending member of the Association of Machinery and Equipment Appraisers.