As an ERP Strategist, I know the importance of aligning fixed asset management with operational discipline, financial controls, and strategic asset utilization. Here’s what hospital leaders must get right to ensure assets are managed efficiently — from purchase to retirement.
1. Clear Roles and Accountability
Operational excellence starts with clarity. Assign Fixed Asset Coordinators to own data integrity, empower department custodians to maintain physical custody, and implement governance structures to oversee policies—no ambiguity allowed.
2. Seamless Integration with Finance and Operations
Fixed asset management cannot operate in silos. Ensure tight integration with procurement, accounts payable, general ledger, and maintenance systems to enable real-time data flow, eliminate manual handoffs, and reduce errors.
3. Rigorous CAPEX and Capitalisation Controls
Implement real-time CAPEX budget controls with workflow-driven approvals. Track every stage—from purchase orders to commissioning—and use CWIP accounting to park costs until assets are fully operational. Start depreciation only after commissioning to reflect actual usage.
4. Comprehensive Asset Lifecycle Management
End-to-end control is non-negotiable. Track acquisition sources, manage transfers, and formalize processes for condemnation, write-offs, and sales with proper approvals. Link insurance and maintenance expenses to manage total cost of ownership.
5. Asset Maintenance and OPEX Discipline
Asset uptime is critical in healthcare. Enforce preventive maintenance schedules, link activities to ERP records, control OPEX budgets with actual vs. budget tracking, and monitor service contracts proactively.
6. Robust Controls, Audits, and Compliance
To maintain operational accountability, conduct regular physical verification with barcode/RFID tagging, schedule internal and external audits for reconciliation, adhere to GAAP and tax regulations, and maintain transparent asset inventories.
7. Real-time Dashboards for Decision-Making
Leaders need instant visibility. Access dashboards for CAPEX status, asset condition, and maintenance alerts. Use drill-down reports for compliance and maintain a consolidated asset register for strategic planning.
8. Policy Enforcement and Governance
Strong governance ensures consistency. Enforce capitalization thresholds and depreciation policies, automate disposal approvals with audit trails, and embed governance into ERP workflows to prevent exceptions.
9. Risk Mitigation and Technology Enablement
Proactive risk management includes ongoing asset condition assessments and data-driven maintenance. Execution depends on people and tools, so provide comprehensive training, plan system upgrades, and maintain data quality for reliable reporting.
Final Word for Hospital COOs
Fixed asset management isn’t just a finance function—it’s a mission-critical operational pillar. Deploying a well-integrated ERP solution with strong governance will improve asset utilization, reduce operational risks, support compliance, and strengthen long-term financial health.
A hospital’s mission to deliver quality patient care depends on the strength and reliability of its assets.