Factors To Consider When Renting Medical Equipment

By Lila Bryant


Medical facilities are faced with one of the most expensive and somehow sophisticated equipment investments. In order to have a significant impact on their clients, individuals and institutions that are engaged in practicing medical services are faced with the need of procuring the latest and state of the art equipment. However, with all this investment, the very tools are quickly rendered obsolete by the passage of time and the ever changing technology. It is therefore important and necessary to thoroughly analyze each and every investment decision in order to realize the most economical use of the scarce financial resources. This particularly entails a close comparison between making a purchase and renting medical equipment.

When it comes to renting, there are varieties of implements that can be accessed fairly and under favorable terms. Such include, but not limited to surgery implements, EMR software, X-ray and ultrasound machines, MRI machines, computers, imaging and diagnostic machines and surgery tables. Before renting, remember to consider some important insights, as outlined below.

To begin with, it is important to first of all carry out a lease vs. Buy analysis. The analysis enables you to be sure that you are engaging in the best financial decision. The process entails comparing the item prices across different major manufacturers, against lease quotes obtained from numerous medical tools leasing companies.

A good supply of information is important for a complete financial analysis. You should therefore access the most vital and pertinent financial information before embarking on the analysis. The data will be helpful in assessing the feasibility of the particular project, which can only be arrived at by estimating the cash flow of the investment. The incremental cash flow denotes the additional expenses and revenues accruing from the project. It is from this cash flow that one can know how a particular project will better the performance of the business, which is contrary to a rather unidirectional approach as to whether a particular project will generate profit on its own.

Although many businesses usually stop here, this should not be the case. You should further evaluate the data with other such analyses as break even, payback value and net present value. The long term and short term implications of a given investment can only be evidenced through this evaluation, including the payback period.

However, it is worth considering that the cost of renting is, to a better extent, determined by the rate of the lease. It is therefore necessary to put in mind the factors influencing medical equipment lease rates. One such vital factor is the period of the lease. Before making the decision to rent, ascertain the period you are going to rent the equipment and evaluate the financial implications.

Another element worth considering is the schedule of service (repair). During the period of rent, the user is responsible for maintenance of the item. It is therefore essential to opt for a deal having a fair number of services, coupled with convenient service time. For example, on-site servicing proves rather convenient. The type of lease, whether operating or capital, also determines the amount of monthly payments. Operating leases are less expensive than capital leases, they are entirely rental agreements. On the other hand, Capital leases entail residual ownership of the item.

All in all, the resultant decision should be a win-win situation. The project so undertaken must be beneficial not only to your practice, but also to the ultimate client. The customer should reap from the comfort and affordability associated with the decision. For the business, it ought to be in line with the future plans and compare well with other alternative foregone opportunities in the practice.




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