Charitable equipment-giving has cost-saving side for hospitals

by Todd Shields

Donating outdated medical equipment to Third World countries is a worthy cause for hospital material managers who have done it. And while they say pure benevolence is their foremost reason for giving, they also explain how doing so is a cost- saving move for their hospitals.

With new supplies and fresh technology pushing equipment out onto the hospital's shipping dock or into the Dumpster, charitable giveaways make practical sense to material managers.

Some purchasing directors said because most outdated equipment is intended for secondhand small markets, it is difficult to unload in a timely manner.

"Your time spent trying to sell old or obsolete equipment equates to costing the hospital money. I could devote hours to selling, but only minutes in donating to a charity group," said James Dobberstein, material manager for North Ottawa Community Hospital, Grand Haven, MI.

To keep inventory moving, "clearing your shelves" of obsolete materials is another advantage of philanthropy in the material management department.

"There's always castoff stuff in your inventory. You can't send it back to manufacturers because it's out of the box and considered loose merchandise," said Scott Adams, distribution manager for Borgess Medical Center, Kalamazoo, MI.

International Aid

A well-established receiver of donated medical stock is International Aid, a nonprofit, Christian-based group headquartered in Spring Lake, MI.

While operating international divisions in developmental training, emergency relief, hospital management and many diagnostic services, International Aid's medical equipment services provide new and refurbished gear to needy countries.

Mark Heydenburg, the director of International Aid's medical equipment department, said the organization will pick up discarded supplies from hospitals with its own trucks and drivers. It will also transport and refurbish the equipment for overseas shipping, as well as search for lost maintenance manuals. All these services are not charged to hospitals.

"There's definitely cost savings on shipping. Trucking a large medical machine across country like radiographic/fluorographic [equipment] can cost $3,000," he said.

On cutting waste-disposal bills, International Aid technicians will drain hazardous liquids from machine battery packs, high-tension transformers and X-ray equipment. International Aid accepts all liability on donated items, and said never in its 25-year history has a lawsuit been filed against it.

"Most equipment is donated with good intentions. We're pretty much protected by good Samaritan laws. I'm assuming all of the machines we've distributed have helped people," Heydenburg said, adding that diagnostic machines are most needed by Third World nations.

Other high-value items are wheelchairs, crutches, intravenous tubing, oxygen-treatment systems and flexible endoscopes.

"Overseas, doctors prefer using endoscopes to reduce infections and costs. The doctors are trained for endoscopes in the United States and Germany, but they don't have many of them," Heydenburg said.

Donor breaks

According to a spokeswoman for the Food and Drug Administration, American government regulations don't apply to donated stock or even single-use medical devices, as long as the foreign country officially agrees to accept them.

Later this year, the International Association of Medical Equipment Remarketers and Servicers, Laguna Beach, CA, will publish a Web site "charitable page" for hospitals, corporations, associations and original equipment manufacturers wanting to post donated machines, devices and supplies. The site address is www.iamers.org.

Don Bogutski, president of the association, said organizations seeking tax breaks on donations should first determine whether the equipment has depreciated to zero value or completed its amortization schedule.

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