Every day medical corporations are releasing new and advanced instrumentation which will improve medical diagnosis and treatment of diseases. While purchasing has been the traditional method of acquiring equipment, leasing can often be more cost-effective. Medical equipment leasing provides an alternative to purchasing medical equipment such as, laboratory equipment, X-rays, and monitors that can be expensive to finance and are vital to the daily operations in a doctor's office and to your business credit.
Physicians starting their own practices have several choices when ordering tests performed for their patients. Physicians can send their patients to a hospital, to a reference lab or they can perform the test in their office. Having their patients go a hospital for a routine test can be a great inconvenience and reference labs may not be covered by the patience health insurance, thus costing the patient money that didn't need to be spent. When a physician can perform the test in their office means the physician would need to invest in expensive equipment. By using medical equipment leasing, a physician can pay for the equipment in monthly installments instead of all at once. Lease agreements usually include routine maintenance performed by the manufacture, and when the lease agreement comes to an end, the physician may have the opportunity to purchase the equipment or upgrade to a newer model.
Many diagnostic companies will offer discounts if the hospital, reference lab, or clinic also agree to purchase their reagents or products to use along with the equipment. Physicians see medical equipment leasing as a way to help their practice grow and expand. Having the ability to perform simple testing such as, bone density, urinalysis, and an EKG, assist physicians in their diagnosis. Medical equipment leasing offers a chance to reduce costs, as well as financial burden, which this savings may also be passed along to their patients.
There is a variety of equipment available to lease. Such as examination tables, X-ray machines, table top analyzers, microscopes, computer systems, even general office equipment such as computers and copiers. Medical administrators know that the business of medicine is continually changing and new technology brings better opportunities for medical care, such as specialized machines continue to develop and evolve. This makes it difficult for physicians to keep their equipment from becoming obsolete.
Before making a financial decision on medical equipment leasing it always recommended that you review the pros and cons. The biggest disadvantage to medical equipment leasing is that at the end of the leasing agreement you are not the owner of the equipment; however this may be an advantage especially where technology changes so rapidly. Another disadvantage is the cost of leasing equipment may be higher than actually purchasing the equipment. This however is under assumption that the cost would not require you to apply for a loan or use a business credit card.
Applying for a loan or credit card can be a difficult and a lengthy process. Financial institutions will ask for documentation showing your credit history and financials for the past two years. The advantage is that medical equipment leasing companies will only ask for your credit history for the previous semester. Doctors often qualify for favorable leasing rates as they are often considered low risk. Another advantage is when state of the art machines and computers show any flaws, they lose their value quickly, which means they may be obsolete within 2-3 years.
Medical equipment leasing allows you to acquire new equipment that you may not be able to afford otherwise. You will be able to provide your patients with better services and you don't need to worry about the equipment becoming outdated or needing repairs as you can turn it in and exchange it for new equipment.
Corporate Credit Concepts specializes in medical equipment leasing. For more information about medical equipment leasing have it might benefit your business, please CLICK HERE for a free phone consultation.