For retiring medical equipment, proactively assess its relevance, costs, supportability, and consider reassignment, disposal, or upgrades.

By Garrett Cathey

When people think about their healthcare equipment strategy, they focus on need, acquisition and use. And while those steps are incredibly important, advanced equipment management doesn’t end there. It’s just as critical to plan for the “retirement” of your equipment as it nears the end of its service life.

Consider this. A smart equipment management strategy starts with understanding the needs of your patients and matching the equipment to the workflows that best support your staff and space. But once the strategy is in place, it can’t stay that way forever. That’s because equipment ages and in turn, its reliability and capabilities diminish to the point they can no longer support optimum care and streamlined workflows. However, if you proactively consider how to send your equipment off into the sunset—or at least reassign it—you can protect your patients, clinicians and bottom line from the negative impact of asset obsolescence.

Considerations for Equipment Retirement

One of the first steps in an equipment retirement strategy is to look for signs that you need to change or update your assets. Here are some ways to determine when it could be beneficial to begin the retirement process:

  • Relevance of clinical application: If you aren’t using the equipment enough or if the application is no longer financially or logistically viable, it could be time to rethink your equipment.
  • Repair costs and downtime: Higher costs as equipment gets older can be a drain on your budget.
  • Software upgrade capabilities:  Can equipment software still be upgraded?
  • Supportability: Are parts and software still available?
  • Cybersecurity: Is the asset a weak spot in your security system?
  • Age of the device: While older equipment can still be reliable and useful, some hospital systems schedule their retirement simply on a timing basis.

If your equipment is fairly new, and going through the considerations above leads to few concerns, you may be questioning if you need to have a plan at all. After all, “crossing that bridge when you come to it” is a common replacement strategy. While popular, the wait-and-see method can have major financial drawbacks. A proactive plan benefits your entire healthcare system.

Money (and More) Are on the Line

It’s no secret that many equipment-related decisions are made based on budgets. And while some might not want to invest in new equipment until they absolutely have to, that strategy can actually cost you in many ways.

The first thing to consider is downtime and repair costs. If your equipment is not reliable, it’s going to set you back thousands of dollars per downtime event, not counting the repair charges. In fact, according to a 2023 study by UptimeHealth, every minute of downtime can cost a hospital an average of $25,000. This includes canceled appointments, reduced productivity, billing disruptions, and even HIPAA fines.

But it goes beyond the dollars and cents. Downtime is not only a drain on your budget, it means added stress to your staff and patients. Clinicians have to scramble to adjust equipment schedules and appointments and may even be stuck using backup equipment they’re not familiar with. This is a sobering reality that if you aren’t proactively managing your equipment and planning for the future, you may face significant challenges when equipment goes down.

New Functionality Is Out There

As you upgrade to new equipment and software you’ll also have the chance to add new capabilities and functionality. As you determine what type of equipment to invest in, this is an excellent time to think about what your patients need.

If you’re proactively planning, you will have done your research on new equipment and determined a path that supports your patients and staff. The functionality isn’t just about what’s new and cool; it’s about answering the question of “how can we equip our team to provide the best patient care?”

Reshape Your Department’s Day-to-Day

Change is a constant and yet uncomfortable part of life. But, when it inevitably comes, sometimes the best way to approach it is to run headlong into the change. In essence, since change is happening, what else can we adjust while we’re in a state of transition?

Equipment evaluation is a great time to bring in voices from all affected areas, including clinicians, IT and other departments. While they may not all get a final say in the equipment decision, they will be responsible for executing the plan going forward. The following questions are worth considering as you determine what will work best for your workflows (or how you can optimize):

  • Should the equipment be mobile or fixed?
  • Where, when and how often will you use the equipment?
  • Who will use the device and who should be trained on it?

If you answer these questions—as well as look at your evolving patient population and their needs—you’ll be able to use the equipment transition as a time to steer your department to where it needs to go.

Consider the Environmental Impact

When it’s time to officially retire your equipment from its current operation, it’s more than just about disposal. First and foremost, before any disposal or recycling, make sure your disposal complies with local, state, and federal regulations.

If you think the device may still have life but is not fit to be a primary piece of equipment anymore, you could also consider reassigning it to another one of your facilities or to a place that doesn’t have as much volume. For example, beds at a main hospital may be in better shape than those in outlying clinics that are part of the same healthcare system.

If it’s time to officially get rid of the equipment from your healthcare system, consider donating or recycling it. While it might not get you a financial return, there are often incentives attached to safely recycling a piece of equipment that has valuable components. It’s all about making sure the equipment gets to the right place after it’s completed its life cycle.

The Care Is More Important Than the Asset

All of these steps and considerations have one major aspect in common: They’re focused on the people using the equipment, the clinicians and the patients. Ultimately, your focus should be on community care, and how your equipment helps you achieve quality, efficient care for your patients and community.

Whether it be the capital investment, workflows, patient care or environmental impact, having a plan to retire equipment can improve all aspects of your operation.

Garrett Cathey is the vice president of sales and business development for GE HealthCare’s Medical Technology Advanced Services.