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

vmunoz@onlinemeridian.com