Limited Capital Budgets? Let’s make every penny count.
Asset Replacement Planning – Using whole-life costs
Posted by Constance Courtnell on Sep 05, 2024
Combating a backlog of ageing equipment against a backdrop of squeezed budgets is a considerable challenge for any hospital. That’s why our replacement planning methodology examines every aspect of whole-life costs, making recommendations based on risk-based priorities, rather than just the day one purchase cost.
Effective, whole-life replacement planning helps you:
- Forecast effectively
- Make the most of limited capital
- Manage the funding gap
- Develop better-informed business plans
- Identify standardisation opportunities
- Quantify the impact of sweating assets
- Amend plans as risk assessments change
Four steps to whole-life replacement planning:
- Collating the data you need:
We’ll help you identify the data you’ll need from a range of sources/ this will include your own data, up to date market cost data forecasts drawn from our own historical data which includes services and consumables, risk assessments, purchase costs, financing costs and technological maturity.
- Populating our dynamic, online system:
Once the information has been collated, we’ll help you populate your replacement plan in our online system, your plan will be dynamic – adapting to new information, costs or risk assessments. It can be made available to all stakeholders, delivering a fully transparent planning tool.
- Evaluating the funding gap:
Every NHS Trust, and most departments, will have a funding gap - the difference between what you need and your available funds. The plan will clearly identify the whole-life costs of the equipment you need to purchase as well as available source of funds. The model will assess the costs of alternative funding options - from cash to loan and lease to managed service, helping you make the most cost-effective funding decisions.
- Making the right decision:
Armed with up-to-date whole-life costs on an asset-by-asset basis, you'll be able to assess your options, build well-informed business cases and identify the ideal time and method to replace the equipment on your list.
Let’s make a plan
We offer a free assessment to identify the benefits this approach can deliver for your Trust. To discuss how we can help your department, or your entire Trust get in touch today!
To find out more information, visit here.
Or email - James.drury@csltd.org.uk