Should you rent or purchase medical equipment

The importance of medical equipment in healthcare cannot be undermined. Whether it’s a hospital or a smaller healthcare practice, everyone needs the right equipment for providing quality care to the patients. Technological advancements and improvements are taking place at a rapid pace, there is a new machine in the market every year or so. Even though upgrading the old machines or buying the latest ones is ideal, it’s an expensive investment. So, is it wiser to buy or lease medical equipment? The answer to this question depends on certain factors. This article explores some important considerations you should keep in mind before taking the decision.

Things to consider before you decide to rent or purchase medical equipment

Requirement

Firstly, you need to consider how beneficial the new equipment will be for your practice. Is it worth the investment? Is there a significant cost advantage to it? Will it be helpful for your existing practice? Will it help you attract new patients? If yes, then it’s probably worth the investment, and you should by all means go ahead and purchase it. Otherwise, it will only add to your cost due to underutilization.

Buy v/s Rent – Cost Analysis

Once you have zeroed in on the right medical equipment for your business, assess the costs involved in purchasing medical equipment on loan and getting the same on lease. If the cost of leasing/renting is equivalent to the cost incurred with a medical equipment loan, then it is advisable to go with the latter. And, if you are not able to get a line of credit or are unable to meet the down payment, then it’s best to take the equipment on lease. The idea is that your working capital should not become negative as it may impact your everyday operation.

Productivity and value

Your new equipment should be worth the amount spent on it. It should result in better diagnosis and monitoring, faster turnaround and increased productivity. Before leasing the medical equipment, estimate its power consumption and associated costs incurred in running the equipment. Apart from enhanced patient care, it should also result in an increased revenue flow.