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Painless Post-Merger Technology Transitions
Merging health care organizations often require some new technology to ensure interoperability across systems. Learn how our financing can help you with the transition.
[Post-Merger: Refresh, Renew or Recycle]
The great thing about new equipment is enjoying the speed, flexibility, and capabilities of the new technology. The not-so-great thing about new equipment is the transition period between when you unplug your existing machines and plug in your new machines.
If you paid with cash, the equipment is yours to keep, including cleaning the data and recycling or reselling the equipment. If you leased your equipment, the equipment ownership lies with your commercial finance company, and for that reason, they can and should help you with the transition.
Tip #1: Plan for Decommissioning
- [Data Sanitization] These days, even the most mundane office technology may contain sensitive patient information. A Department of Defense-level wipe helps ensure that your sensitive information has been removed before you donate or resell your equipment. A Certificate of Data Destruction should be obtained for your records following the data wipe procedure.
- [Recycling] For assets that cannot be re-commissioned, be sure to dispose of the items in a manner consistent with your organization’s sustainability initiatives. For leased equipment, an R2 Certified lessor can assist you with this process, and also provide you with a certificate indicating that the machines have been responsibly recycled. R2 Certification is the industry standard for recycling and green initiatives.
- [Logistics] It is important to select a carrier that specializes in technology equipment for your equipment packaging, pick-up, and shipping services.
Tip #2: Prepare for Packing and Shipping
If you leased your equipment, choosing a technology-friendly transporter will help ensure that monitors, printers and other technology equipment is returned safely. Also, before you start packing, find out from your logistics company whether they require stackable pallets. When you are ready to begin, please remember that proper packaging does matter. Choose durable packing materials, pad the items, and be sure the contents will not shift during the shipment. Unfortunately, cardboard boxes and Styrofoam peanuts are unlikely to get you the results you want. Boxes can fall apart and peanuts may disintegrate and allow items to move during shipping. Parts bumping into each other can cause damage to the equipment.
Tip #3: Use Your Old Equipment to Help Buy New Equipment
At the end of the lease term, you generally have three choices: return the equipment, buy the equipment for its fair market value, or continue to lease.
But a progressive leasing company like First American can help you recover some of the value by reselling your old equipment, as long as it is not currently on lease, and using 100% of the proceeds toward your newly-leased equipment.
About First American Healthcare Finance
First American is ranked among the top 50 bank finance/leasing companies in the United States. The company has a longstanding reputation for professionalism and outstanding customer service among health care borrowers throughout the United States. First American’s equipment finance solutions have earned the exclusive endorsement of the American Hospital Association and the Peer Reviewed by HFMA designation. First American is headquartered in Fairport, New York and is a subsidiary of City National Bank. For more information, visit www.fahf.com.
