Why You Should Consider Financing Medical Equipment

By Author: Jeff Hough
Total Articles: 1
Comment this article

For every physician and all types of healthcare centers, offering the best patient services, cutting-edge equipment and well-maintained facilities are all equally important. Health is in many ways dependent on healthcare centers and facilities’ financial well-being! Profit margins, budgets, policies and strategic decisions must be carefully calculated and implemented; since their every move impacts their patients’ access to care.

And as medical equipment is often very expensive to acquire, it is critical to discuss why you should consider Financing Medical Equipment, for your and your patients’ sake.

‘Life might be a game, but health is not something to play with!’
The Benefits of Financing Medical Equipment:
Reliability! -
Every organization and healthcare facility has different needs in different moments. You should be aware of your needs at all times and cover them, as you should always be aware of what the competition is doing. Leasing can preserve cashflow when it matters, ...
... and give you stronger financial security. Having the right equipment that functions properly can help you be the facility your patients can rely on.
Practicality!
If you have conducted a sober, down-to-earth, Financial Assessment and Analysis you only have to gain from financing medical equipment. You won’t have to face huge upfront costs, your cash flow won’t be interrupted and your budget won’t skyrocket! On top of that, you will have liquidity to face any emergencies or unpleasant surprises, maintain your working capital and you will be able to execute day-to-day processes effectively, even when funds for new devices will be needed. Just keep in mind that parameters like, Number of Procedures, possible Lost Revenue, Acquisition Costs, Return of Investment must be included during the research phase.
Technology
We have already mentioned it and any professional in the sector knows it well, sometimes obtaining the latest technology is the only way to gain a clear advantage and ensure optimal performance. Financing equipment (mostly through leasing agreements because of their nature) will guarantee you that you will be working exclusively with state-of-the-art equipment.
Size and Budget
Mayo Clinic and a small Healthcare facility in the rangelands of Wyoming have more in common than they do differences. Both organizations strive for life, for the best possible results and for their economic survival. One major difference is that when the people of Mayo decide to buy a new X-Ray machine, a Ventilator or a Defibrillator they don’t have to overanalyze it, they can afford to purchase their equipment outright. For our heroic friends at Wyoming, financing is their only ally to obtain expensive equipment as needed. Regardless of your size, though, leasing provides the same benefit: financial flexibility.
Scalability
Financing Medical Equipment will help you fix your vision exclusively towards the future. Evolution is not only a biological term. Your healthcare center, your services and overall performance should evolve as well. As your facility grows, and your needs change, leasing provides the opportunity to add and remove pieces of equipment from your lease over time. Which means you aren’t burdened with paying for equipment you don’t need – and you aren’t left without access to essential equipment.
To Lead or to Follow?
Staying ahead has nothing to do with size. The smallest startup can generate the biggest idea. A small healthcare organization (in Wyoming and everywhere) can bring new methodologies, approaches, innovative ideas and place itself on the forefront of the healthcare sector among the giants of the field. Financing medical equipment can give you access to devices and equipment that before seemed unattainable.
Loans and Lease Agreements
The two most common ways to finance your medical equipment are Loans and Leasing.
Loans
Small healthcare facilities, medium-sized clinics, big hospitals and even individuals can take on a loan to finance medical equipment. As it happens with lease agreements as well, a loan will help you break down the high amounts of medical equipment into small monthly payments. Nowadays, there are several types of Medical Equipment Loans available in the market, but before spilling any ink on the dotted line, make sure that you have opted for one that offers you the best terms and conditions. Search for Low-Interest Rates, ask for the right loan amount that will cover all your needs (Devices, maintenance, transport cost etc.).
Leasing
Lately, lease agreements have gained great momentum and it doesn’t seem that this momentum will be halted any time soon; quite the contrary. Leasing offers a kind of flexibility that will keep your hands untied. Experienced professionals will give you valuable technical advice and answers to any type of financial inquiries. Customized agreements will guarantee access to state-of-the-art devices and among the numerous advantages of a lease plan…at the end of the agreement, you can make a new one and acquire last generation equipment.

To all the above we should also include that you won’t have to worry about any surprises, as everything will be disclosed to you in advance. You just have to find a trusted and reputable partner. A well-designed leasing agreement can be a game changer and a budget saver.

And although we would all prefer to be able to purchase equipment outright, financing provides complete flexibility. With the right partner by your side, you can make the right financial decision for your organization’s future.

Some of us get to do what we love and I have combined a passion for technology, a fascination with healthcare and a competitive spirit in business into the role of Program Manager of Healthcare at the Meridian Leasing Corporation. I draw on experience from IBM’s software team and the Huron Consulting Group’s Managed Care practice to advise our healthcare clients on the best practices around equipment finance and lifecycle management.