8 DECEMBER - 2022IN MY OPINIONDirect experience with hospital personal property asset management has resulted in many benefits for University Health, including increased revenue, better use of resources, reduction in risk, and increased staff satisfaction. The nature of following a structured approach to asset management, such as the ISO 55000 asset management series, indicates that other hospitals can realize the same benefits, and more.In 2014, the International Standards Organization (ISO) published the ISO 55000 series of standards for Asset Management. These standards apply to any type of asset. Since 2014, the standards are gaining traction internationally with 326 organizations currently obtaining the benefits of certification worldwide. These organizations range in industry from engineering to waste water. Unfortunately, only three healthcare services related organizations are on the list. University Health in San Antonio, Texas is the first hospital in the world to achieve ISO 55001 Certification for its Personal Property Asset Management System.If you work in a hospital, or any large organization, you cannot do your job without personal property. There are three basic characteristics common to hospitals, and all large organizations: building, people, and the tools that people need to do their jobs, otherwise known as, personal property, which can be affectionately called "stuff". In general, we do a good job at managing the building and people, but not such a good job managing all the stuff within the building that people use. One good reason for focused attention and management on the building and the people is due to the amount of the investments made in them by the organization. It might surprise you to know that next to human resources, most companies claim property as their next largest expense. Property has two components: real property that constitutes the building and infrastructure and personal property that constitutes the furniture, fixtures, and equipment. Again, we do a good job managing the real property, but half of that property investment goes undermanaged.According to the United States Census Bureau's 2022 capital spending report, organizations spend more capital on equipment than they do on structures. For hospitals, the ratio is more like 55/45 in favor of structures. This almost even capital spending split between structures and equipment makes sense when you think about it. Buildings last for decades and the majority of capital spent is on the A Case for Personal Property Asset Management in HospitalsBy Arthur Kurland, Director of Capital and Asset Management, University HealthBuildings last for decades and the majority of capital spent is on the initial construction. However, personal property replacement occurs periodically due to obsolescence, which can result in a total replacement of furniture, fixtures, and equipment several times in the life of a buildingArthur Kurland
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