How long does the valuation of medical equipment take?

The duration depends on the quantity and complexity of the items. Evaluating a single complex machine (like an MRI or CT scanner) might take 3 to 5 business days, whereas a full inventory and valuation of an entire clinic or hospital can take 2 to 4 weeks.

What documents are required to start the valuation process?

You will generally need to provide a fixed asset register (inventory list), purchase invoices or contracts, technical passports and manuals, and the service/maintenance history logs to accurately determine the condition and depreciation of the machinery.

Can I use the valuation report to secure a bank loan in Georgia?

Yes. An official valuation report prepared by a certified valuator in accordance with International Valuation Standards (IVS) is fully recognized and accepted by all commercial banks in Georgia for the purpose of pledging equipment as collateral.

Does the valuation include the software of the medical devices?

Absolutely. A significant portion of the value of modern medical and laboratory equipment lies in its software and installed licenses. Valuators thoroughly assess the software versions and updates as part of the overall market value.

Medical Equipment Valuation in Georgia | Legal.ge

What is Medical & Laboratory Equipment Valuation?

Medical and laboratory equipment valuation is an independent, objective process aimed at determining the market, liquidation, or replacement value of specialized machinery used in the healthcare sector. Georgia's healthcare sector is constantly developing, and a significant portion of the assets owned by clinics, hospitals, and diagnostic centers consists of highly sophisticated medical equipment. The specific nature of these assets, their rapid technological obsolescence, and their high initial cost require the involvement of highly qualified valuation experts who understand not only financial modeling but also the dynamics of the medical technology market. This service is critically important for the management of medical facilities, as well as for investors, insurance companies, and financial institutions, in order to obtain accurate information about the true value of a clinic's material and technical resources.

What Does This Service Cover?

The valuation of medical and laboratory equipment covers a wide spectrum of technology found within the healthcare system. The service includes the identification of each piece of machinery, a detailed study of its technical condition, and the determination of the appropriate value for the following categories:

Radiological and Diagnostic Equipment: Magnetic Resonance Imaging (MRI) machines, Computed Tomography (CT) scanners, X-ray machines, ultrasound diagnostic units, mammography machines, and angiographs. The valuation assesses both the physical hardware and the software, as software updates often significantly increase the value of the equipment.
Laboratory and Analytical Equipment: Biochemical and immunological analyzers, hematology machines, centrifuges, microscopes, spectrophotometers, and genetic sequencing equipment. The valuator considers the calibration history of the laboratory equipment and the availability of manufacturer support and service in the region.
Surgical and Resuscitation Equipment: Operating tables, surgical lights, anesthesia machines, artificial lung ventilation (ventilators/IVL) units, defibrillators, patient monitors, and endoscopic towers.
Dental and Specialized Machinery: Fully equipped dental chairs, 3D scanners, and dental X-rays, as well as ophthalmic and aesthetic medicine equipment (laser hair removal and cosmetological devices).
Rehabilitation and Auxiliary Inventory: Medical furniture (including functional beds), physiotherapy equipment, and sterile block machinery (autoclaves and sterilizers).

When is Medical Equipment Valuation Necessary?

Due to the specific nature of the medical business, the need for a professional valuation arises in many different circumstances. The most common real-world scenarios include:

Securing Credit or Leasing: When a clinic wishes to obtain financing from a bank or acquire new equipment through leasing, banks require existing assets to be pledged as collateral. It is essential for the bank to know the exact liquidation value of the machinery in case of forced realization.
Mergers and Acquisitions (M&A): During the sale of clinics or laboratories, the alienation of shares, or a merger with large hospital networks, the value of the equipment represents one of the main components of the total business price.
Insurance and Claims Adjustment: When insuring expensive medical equipment, a replacement value assessment is necessary to correctly determine the insurance premium. Furthermore, in the event of damage (e.g., breakdown caused by power fluctuations), the extent of the damage is evaluated for compensation.
Financial Reporting and Accounting (IFRS): To bring the company's financial statements into compliance with International Financial Reporting Standards and for annual audits, a revaluation of fixed assets is required. Medical equipment depreciates rapidly; therefore, the book value reflected on the balance sheet often does not match the true market value.
Tax Purposes and Asset Declaration: For the accurate calculation of property tax or to take advantage of tax benefits offered by the state.
Liquidation or Bankruptcy: Upon the closure of a medical facility, valuation is needed to fairly distribute assets and satisfy the claims of creditors.

Georgian Legal and Regulatory Framework

In Georgia, the valuation of medical equipment is strictly regulated by international standards and local legislation. The primary foundation of the process is the International Valuation Standards (IVS), which ensures the transparency and global recognition of the valuation methodology. For accounting purposes, the valuator relies on the Law on Accounting, Reporting and Auditing and International Financial Reporting Standards (IFRS) to determine the Fair Value and any Impairment loss of the asset. When revaluing assets for tax purposes, the Tax Code of Georgia applies, which regulates the depreciation rates of fixed assets and the property tax base. Additionally, the Law on Healthcare and related regulations impact the useful life of the equipment, as machinery that no longer meets the safety and licensing standards established by the regulator loses its market value, even if it is physically in working condition. This is why a thorough knowledge of legal and technical details is critical.

The Valuation Process: Steps and Methodology

Equipment valuation is a complex, multi-component process that involves the following key stages:

Preparatory Stage and Identification: Full information is received from the client—a list of assets (inventory sheet), purchase invoices, technical passports, date of commissioning, and software versions.
Physical Inspection and Review: The valuator or a team of experts visits the site. Serial numbers, visual and technical condition, service history (maintenance logs), and the degree of exhaustion of the working resource (e.g., the number of exposures on an X-ray tube) are thoroughly checked.
Methodology Selection and Market Analysis: For medical equipment, three main approaches are generally used: the Cost Approach (calculates the cost of acquiring similar new equipment, deducting physical, functional, and economic obsolescence), the Market Approach (compares the equipment with similar transactions in the secondary market), and sometimes the Income Approach (if the machine is considered an independent cash generator, such as a high-throughput MRI center).
Report Preparation: Analysis of the results obtained and the formation of an official, certified valuation report containing the determined value and a full justification of the assessment.

Why Find a Specialist on Legal.ge?

Valuing medical equipment is not standard movable property valuation; it requires specific knowledge of healthcare technologies and corresponding international markets. Legal.ge is a platform that brings together verified specialists and companies with extensive experience in valuing the assets of clinics, hospitals, and laboratories. On our platform, you can view expert ratings, accreditations, reviews, and professional backgrounds. Find your specialist on Legal.ge to ensure that the valuation of your medical and laboratory equipment is performed with the utmost precision, in full compliance with Georgian legislation and international standards.