Appraising Medical Equipment in 2026: What Matters, What’s Changing, and Why Many Appraisals Fall Short

By Bruce G. Krider, MHA, American Healthcare Appraisal

Medical equipment appraisal has always required a blend of technical understanding, market awareness, and valuation discipline. But in 2026, the landscape is shifting faster than many generalist appraisers can keep up with. Healthcare organizations, lenders, attorneys, and investors increasingly rely on accurate, defensible valuations—not only for compliance and insurance, but for planning, transactions, and capital allocation.

Yet despite the stakes, many equipment appraisals still fall short. The problem isn’t the methodology itself; it’s the misapplication of methodology by professionals who lack the clinical, operational, and technological context that medical equipment demands.

This article highlights what’s new, what’s unchanged, and the most common shortcomings that continue to undermine equipment valuations across the industry.

The Medical Equipment Market Is Evolving Faster Than Ever

Healthcare technology cycles have always been brisk, but the last decade has accelerated the pace dramatically. Several trends now shape the appraisal landscape:

1. Rapid Technology Turnover

MRI, CT, ultrasound, surgical robotics, and monitoring systems evolve in 18–36‑month cycles. A generalist appraiser may treat a five‑year‑old system as “mid‑life,” when in reality it may be two generations behind current clinical expectations.

2. Post‑pandemic supply chain distortions

Temporary shortages and inflated replacement costs created valuation anomalies. Some appraisers still rely on outdated 2020–2022 pricing data, leading to inflated or distorted FMV conclusions.

3. Increased regulatory scrutiny

Stark, Anti‑Kickback, IRS, and insurance documentation standards have tightened. Reports must now demonstrate:

• defensible methodology

• verifiable market data

• clear narrative justification

Generalist reports often fail this test.

4. The rise of hybrid and outpatient care

Ambulatory surgery centers, imaging centers, and specialty clinics now drive a large share of equipment purchases. Their utilization patterns differ significantly from hospitals, and valuations must reflect that.

Why Many Equipment Appraisals Miss the Mark

Even with the best intentions, many appraisals fall short because the appraiser lacks deep familiarity with the medical industry. Here are the most common issues we see when reviewing competitor reports.

1. Using a Generalist Appraiser

This is the single most common—and most damaging—mistake.

Medical equipment is not comparable to office furniture, restaurant equipment, or general machinery. It requires knowledge of:

• clinical relevance

• modality‑specific technology cycles

• OEM upgrade paths

• service contract implications

• regulatory compliance

• utilization patterns across care settings

Without this context, values are often too high, too low, or unsupported.

2. Relying on Outdated or Non‑Comparable Market Data

Many appraisers pull “similar” listings from auction sites or equipment brokers without understanding:

• whether the unit is FDA‑cleared

• whether it includes software

• whether it includes coils, probes, or accessories

• whether it is deinstalled, refurbished, or non‑functional

Medical equipment comparables must be true comparables, not just similar‑looking machines.

3. Ignoring Technology Obsolescence

A system may be fully functional yet clinically obsolete.
A generalist appraiser may value it based on age and condition alone, missing the fact that:

• reimbursement has changed

• clinical expectations have shifted

• OEM support is ending

• replacement parts are scarce

This is where industry‑specific knowledge is essential.

4. Misunderstanding Replacement Cost

Replacement cost is not simply “what a new one costs.”
It must reflect:

• current OEM pricing

• bundled software

• installation

• training

• warranty

• facility requirements

Generalist appraisers often undervalue or overvalue replacement cost by tens of thousands of dollars.

5. Overlooking Regulatory and Compliance Requirements

Healthcare valuations must withstand scrutiny from:

• auditors

• insurers

• attorneys

• regulators

Reports that lack narrative support, market justification, or clear methodology may be rejected outright.

What’s Not New — But Still Critically Important

Some fundamentals haven’t changed, but they remain essential:

• Fair Market Value (FMV) must be defensible and well‑supported.

• Condition assessment must be accurate and documented.

• Market‑based comparables must be relevant and verifiable.

• Methodology must be consistent and regulator‑ready.

These principles are timeless—but they’re often overlooked by appraisers who treat medical equipment like any other asset class.

The Bottom Line

Medical equipment appraisal is a specialized discipline. It requires:

• industry‑specific knowledge

• current market awareness

• understanding of clinical relevance

• familiarity with technology cycles

• defensible valuation methodology

Organizations that rely on generalist appraisers often end up with reports that fail to support transactions, insurance claims, tax filings, or regulatory reviews.

A high‑quality appraisal doesn’t just assign a number—it protects the client, supports decision‑making, and stands up to scrutiny.