{"id":2122,"date":"2024-04-26T15:55:22","date_gmt":"2024-04-26T19:55:22","guid":{"rendered":"https:\/\/sites.miamioh.edu\/doamu\/?p=2122"},"modified":"2024-04-26T15:55:22","modified_gmt":"2024-04-26T19:55:22","slug":"asset-relifing-increasing-operating-margins-in-the-healthcare-industry","status":"publish","type":"post","link":"https:\/\/sites.miamioh.edu\/doamu\/2024\/04\/asset-relifing-increasing-operating-margins-in-the-healthcare-industry\/","title":{"rendered":"Asset Relifing: Increasing Operating Margins in the Healthcare Industry"},"content":{"rendered":"\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:75%\">\n<p><\/p>\n\n\n\n<p>On April 19, students in ACC 321 (Intermediate Financial Accounting) were treated to a talk by Miami alum&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.linkedin.com\/in\/paul-shade-5b291b13\/\" target=\"_blank\">Paul Shade \u201803<\/a>, founder and managing partner of&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/principlevaluation.com\/\" target=\"_blank\">Principle Valuation LLC<\/a>. The company primarily works with hospitals and health systems to accurately estimate the life of their fixed assets (i.e., \u201casset relifing\u201d), ultimately improving their operating margins.<\/p>\n\n\n\n<p>The talk provided students with a view of the economic implications of accounting in the healthcare industry. With many hospitals currently struggling to make profit, Shade said, the increased operating margin from switching to Principle Valuation\u2019s asset relifing methodology results in many opportunities for health organizations to \u201creap perpetual benefits,\u201d such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>improving their bond and credit ratings<\/li>\n\n\n\n<li>lowering their interest rates and insurance premiums<\/li>\n\n\n\n<li>allocating capital on items that would provide greater benefits to the organization<\/li>\n\n\n\n<li>leveraging the information they gain from asset relifing in purchasing contracts with suppliers<\/li>\n<\/ul>\n\n\n\n<p>Before asset relifing was introduced by the work of Principle Valuation, the industry only relied on a few resources to estimate the useful lives of depreciable hospital assets, which are updated every few years. However, data accumulated by Principle Valuation, based on information from at least 500 hospitals and updated much more frequently than others, indicate a more accurate picture of how long organizations can expect to be able to use their assets.&nbsp;<\/p>\n\n\n\n<p>In response to a student\u2019s question on the company\u2019s interaction with auditing firms, Shade said that the company\u2019s estimates have always been received well, and firms are satisfied with the substantial supporting data. Principle Valuation\u2019s clients include many big names in the hospital industry, including Cleveland Clinic (Ohio), Banner Health (Arizona), and Lee Health System (Florida).<\/p>\n\n\n\n<p>After the presentation, students were given the opportunity to ask questions about the business and seek advice as they prepare to enter the workforce. Also present to answer questions was Shade\u2019s wife Heidi (\u201803 Marketing), who is a cofounder of the pet food boutique&nbsp;<a href=\"https:\/\/bredwell.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bredwell<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"458\" src=\"http:\/\/sites.miamioh.edu\/doamu2\/files\/2024\/04\/Student-audience_cropped-1024x458.jpg\" alt=\"Photo shows students in the auditorium listening to the speaker\" class=\"wp-image-2151\" srcset=\"https:\/\/sites.miamioh.edu\/doamu\/files\/2024\/04\/Student-audience_cropped-1024x458.jpg 1024w, https:\/\/sites.miamioh.edu\/doamu\/files\/2024\/04\/Student-audience_cropped-300x134.jpg 300w, https:\/\/sites.miamioh.edu\/doamu\/files\/2024\/04\/Student-audience_cropped-768x344.jpg 768w, https:\/\/sites.miamioh.edu\/doamu\/files\/2024\/04\/Student-audience_cropped.jpg 1310w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Students raised questions about the relationship between auditors and the firm, how business development worked, the benefits of working in a smaller firm, and other career-related questions. Shade noted that while the firm is small, it works with some of the largest organizations in the industry. He also stressed the importance of taking the opportunity to work in person at the office\u2013there\u2019s so much more advantage to being present where decisions are made and new solutions are created.<\/p>\n\n\n\n<p>We thank Paul and Heidi Shade for taking the time to come back to campus and speak with our accountancy students!<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:25%\">\n<p> <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"656\" src=\"https:\/\/sites.miamioh.edu\/doamu\/files\/2024\/04\/Paul-with-Red-Curtain.jpg\" alt=\"Photo of Paul Shade speaking at a class lectern\" class=\"wp-image-2124\" srcset=\"https:\/\/sites.miamioh.edu\/doamu\/files\/2024\/04\/Paul-with-Red-Curtain.jpg 500w, https:\/\/sites.miamioh.edu\/doamu\/files\/2024\/04\/Paul-with-Red-Curtain-229x300.jpg 229w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><figcaption class=\"wp-element-caption\">Paul Shade &#8217;03, Managing Partner of Principal Valuation LLC<\/figcaption><\/figure>\n<\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On April 19, students in ACC 321 (Intermediate Financial Accounting) were treated to a talk by Miami alum&nbsp;Paul Shade \u201803, founder and managing partner of&nbsp;Principle [&hellip;]<\/p>\n","protected":false},"author":2567,"featured_media":2126,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[7,2,4,6],"tags":[10,12,14],"class_list":["post-2122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alumni-updates","category-blog","category-latest-news","category-student-news","tag-2024-spring","tag-alumni-network","tag-unique-student-experiences"],"_links":{"self":[{"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/posts\/2122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/users\/2567"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/comments?post=2122"}],"version-history":[{"count":0,"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/posts\/2122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/media\/2126"}],"wp:attachment":[{"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/media?parent=2122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/categories?post=2122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.miamioh.edu\/doamu\/wp-json\/wp\/v2\/tags?post=2122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}