Your Guide to Renting and Financing Medical Equipment
In order to provide the highest quality of care to your patients, your facility needs to be outfitted with the best equipment available. However, a growing business may not always have the funds to purchase that medical equipment outright. Often, it's clear that the most cost-effective option may be securing financing for medical equipment or to consider hospital equipment rentals.
If these two choices are new to you, you certainly aren't alone. But since 86% of all patients admitted to hospital beds require infusion pumps -- and these vital pieces of equipment require a substantial investment -- it's important to understand all of the options available to you. In today's post, we'll discuss the main points to keep in mind when exploring medical equipment rentals or financing.
How Does Medical Equipment Leasing Work?
Renting medical equipment isn't all that different a process from paying rent on an apartment or renting a car. When you rent medical equipment, you'll either enter into an committed agreement with a equipment distributor or provider that allows you to utilize the equipment without having to bear the burdens associated with ownership. Usually, you can rent equipment from days to weeks to months with discounted rates for longer rental periods.
How Does Medical Equipment Financing Work?
When you choose financing or leasing for medical equipment, you'll essentially be taking out a loan in order to pay for these assets over time. Some medical equipment can be leased sort of like a rent-to-own condo, in that you'll be paying money towards eventual ownership. After the lease term, and based on your agreement, a hospital can return the equipment back to the lessor or choose to own the equipment outright. You won't own the equipment from the start, but if you make your payments towards your loan, you will own it down the line.
How Does Medical Equipment Financing Differ From Renting?
Both options allow for a bit more flexibility; in either case, you won't have to part with a huge lump sum from the beginning in order to own the equipment. However, leasing is the option that provides you with an opportunity to potentially own the equipment later on. As mentioned above once your agreement has expired, you can either pay to own the equipment then or enter into a different agreement for newer equipment. With medical equipment financing, you'll be making an investment in ownership from the start -- but in a way that makes costs a bit more affordable. If your company has strong credit and requires technology that is established and mature, it can be a good option.
Why Do Facilities Consider Renting or Financing for Medical Equipment?
Renting medical equipment is typically seen as a sound way to ensure your facility has the up-to-date technology required to compete without having to tie up your capital in purchasing the equipment. This can be especially important for businesses that are just starting out or you are in the middle of peak flu season. However, this type of agreement can also be beneficial for businesses in any phase and of any size. It can also allow for better cash flow tracking.
When you secure financing for medical equipment, you won't be paying monthly fees just for its use; you'll also be paying money towards a loan that will eventually allow you to own that equipment. You'll be able to acquire assets without having to pay a substantial amount upfront. It is important to note, however, that additional interest rates will apply and these costs must be factored into your budget. Although payments may be more manageable and will allow for greater flexibility, you'll need to weigh the pros and cons before you enter into any agreement.
If you've determined that leasing or renting medical equipment is the best move for your healthcare facility, we can come up with a customized proposal that will provide you with what you need at a price you can afford. To learn more, please contact us today.