Miga Solutions - Miga screwed us

Posted on Friday, March 18th, 2011 at 3:42pm CDT by dfee3078

Product: Used medical equipment

Company: Miga Solutions

Location: 3500 Holly Ln N
Plymouth, MN, 55447, US

URL: http://www.miga.com/

Category: Other

You may or may not be engaged with a company named Miga Solutions or Miga. It has recently been discovered that Miga partakes in very unethical practices. Miga sells used medical equipment for hospitals, clinics, and other healthcare facilities, they also offer "equipment value management" solutions.

With respect to selling used equipment, Miga sells equipment on a consignment basis for hospitals. The price of what the equipment is sold for is then split between Miga and the customer, usually a 50/50 split. What Miga does not divulge is that they tack on all sorts of different costs so that the customer may only see 15% of what the equipment actually sold for. Miga is very crafty at coming up with bogus charges in order not to pay the full amount due to the customer. As an example a piece of equipment is sold for $5000, the split should be $2500, but no, Miga adds in storage fee's, pick-up charges, biomed inspection fee's, marketing fee's, and anything else they can think of to reduce the amount of money that is paid to the hospital who they sold the equipment for. Miga preaches to hospitals that they will get a much higher return using Miga than they will by selling their equipment to a broker. This is simply a lie! If a broker offers a hospital $5000 for a piece of equipment and the hospital decides to list it with Miga, that piece of equipment needs to sell for over $10,000 for the hospital to get the same amount the broker offered for the equipment and that is never going to happen.

Another way they avoid paying is by lumping equipment in to "job's". So if 10 pieces of equipment come in they are all assigned as a single "job". The problem with this and how Miga gets away with not paying their customers is that in their agreement with the hospital, Miga only issues a check when every item in that job is sold. So if you have a job with 10 pieces of equipment and one piece can not be sold, Miga will not pay until the job is closed and all items are sold.

Another great example of how Miga swindles it's customers is a customer who agreed to purchase a CT. The buyer paid Miga around $150k via wire in anticipation of receiving the CT. The CT became unavailable and Miga did not refund the $150k the buyer had paid. Miga used that money for operating expenses and now does not have the funds to repay the buyer. This happens on an almost daily basis at Miga. They have a strict policy of making the buyer pay before any equipment is shipped to them and they must also pay the outrageous shipping costs Miga charges to ship equipment. They also have a no return policy. Several buyers have made purchases and once the equipment arrived, it did not work. Miga's response is that you are buying equipment "as is" which would be acceptable if the buyer knew the equipment did not work prior to making the purchase, but is not acceptable when the buyer was told that the equipment was in working order. This is a classic example of "buyer beware".

Part of their equipment value management services are deinstallations, relocations, service contracts, fair market valuations, etc. Miga uses third party contractors to do the work for them because they do not actually have the qualified people to do such work. Using a third party like this increases the price dramatically because in addition to the contractors price, Miga also attaches their profit which is usually thousands of dollars. All in all when using Miga for such services, hospitals pay two to three times the average rate.

Another unethical practice and even more serious is how they treat and pay their sales people. Miga's sales reps are paid on a commission basis which is usually 10 - 15%. In reality the sales rep may be lucky if he or she sees 2%. Miga again makes up charges so that they do not have to pay the full amount due to the sales person. If the sales rep goes to a customer site, the rep is docked vacation time plus an hourly consulting rate is deducted from the sales rep's commission because he/she was not in the office. Additionally if any other employees helps the sales rep with the sale, Miga deducts even more money to cover the cost of the additional employee who helped sell the equipment. For example, if Dan is selling a CT and asks Steve to run a history report on the CT, Dan the sales rep will not be paid his full commission because Steve had to take time out to run the report and that is considered billable time and unfortunately charged to the sales rep and deducted from their commissions. Miga is a revolving door for sales people which for obvious reason is very inconvenient for customers.

If Miga was forced to pay up what they currently owe companies, Miga would be out of business. The business has been around for almost 7 years and still has only 10 employees, brings in less than $400,000 in gross revenue each year, and burns through employees like they are matches. The working environment at Miga is bleak and depressing. The president of the company was terminated from two fortune 500 financial companies for fraudulent activities involving funds. He is still swindling money out of Miga's customers and it's employees. The CEO and founder of Miga is no better, he will tell a customer what ever they want to hear and then will never make good on what he said. MIga is in it's final days, they are desperately seeking funding from venture capitalists however, it is going to be extremely difficult for Miga to secure any kind of funding to keep the doors open due to it's track record with previous investors. No one in their right mind would invest in Miga because it is inevitable that the money invested will be lost and spent frivolously.


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